VGSH vs. VUG
VGSH (Vanguard Short-Term Treasury ETF) and VUG (Vanguard Growth ETF) are both exchange-traded funds - VGSH is a Government Bonds fund tracking the Bloomberg U.S. Treasury 1-3 Year Index, while VUG is a Large Cap Growth Equities fund tracking the CRSP US Large Cap Growth Index. Both are passively managed. Over the past 10 years, VGSH returned 1.70%/yr vs 18.02%/yr for VUG. At a correlation of -0.11, they often move in opposite directions. Both charge a 0.03% expense ratio.
Performance
VGSH vs. VUG - Performance Comparison
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Returns By Period
In the year-to-date period, VGSH achieves a 0.47% return, which is significantly lower than VUG's 3.52% return. Over the past 10 years, VGSH has underperformed VUG with an annualized return of 1.70%, while VUG has yielded a comparatively higher 18.02% annualized return.
VGSH
- 1D
- 0.05%
- 1M
- 0.11%
- YTD
- 0.47%
- 6M
- 0.64%
- 1Y
- 2.99%
- 3Y*
- 4.20%
- 5Y*
- 1.85%
- 10Y*
- 1.70%
VUG
- 1D
- -2.12%
- 1M
- -3.95%
- YTD
- 3.52%
- 6M
- 2.23%
- 1Y
- 20.05%
- 3Y*
- 22.74%
- 5Y*
- 12.80%
- 10Y*
- 18.02%
VGSH vs. VUG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VGSH Vanguard Short-Term Treasury ETF | 0.47% | 5.07% | 4.00% | 4.31% | -3.86% | -0.60% | 3.04% | 3.52% | 1.55% | 0.04% |
VUG Vanguard Growth ETF | 3.52% | 19.40% | 32.69% | 46.83% | -33.16% | 27.35% | 40.25% | 37.03% | -3.32% | 27.72% |
Correlation
The correlation between VGSH and VUG is 0.10, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.10 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.03 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.06 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.05 |
Correlation (All Time) Calculated using the full available price history since Nov 23, 2009 | -0.11 |
The correlation between VGSH and VUG shifts across timeframes, from -0.11 (all time) to 0.10 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
VGSH vs. VUG — Risk / Return Rank
VGSH
VUG
VGSH vs. VUG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Treasury ETF (VGSH) and Vanguard Growth ETF (VUG). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| VGSH | VUG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.10 | ||
| Sortino ratioReturn per unit of downside risk | +1.96 | ||
| Omega ratioGain probability vs. loss probability | 1.48 | 1.21 | +0.26 |
| Calmar ratioReturn relative to maximum drawdown | 3.40 | 1.22 | +2.18 |
| Martin ratioReturn relative to average drawdown | 13.02 | 4.15 | +8.87 |
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Drawdowns
VGSH vs. VUG - Drawdown Comparison
The maximum VGSH drawdown since its inception was -5.70%, smaller than the maximum VUG drawdown of -50.68%. Use the drawdown chart below to compare losses from any high point for VGSH and VUG.
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Drawdown Indicators
| VGSH | VUG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.70% | -50.68% | +44.98% |
Max Drawdown (1Y)Largest decline over 1 year | -0.88% | -16.53% | +15.65% |
Max Drawdown (3Y)Largest decline over 3 years | -0.97% | -22.85% | +21.88% |
Max Drawdown (5Y)Largest decline over 5 years | -5.66% | -35.61% | +29.95% |
Max Drawdown (10Y)Largest decline over 10 years | -5.70% | -35.61% | +29.91% |
Current DrawdownCurrent decline from peak | -0.31% | -6.88% | +6.57% |
Average DrawdownAverage peak-to-trough decline | -0.60% | -7.09% | +6.49% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.23% | 4.84% | -4.61% |
Volatility
VGSH vs. VUG - Volatility Comparison
The current volatility for Vanguard Short-Term Treasury ETF (VGSH) is 0.45%, while Vanguard Growth ETF (VUG) has a volatility of 6.86%. This indicates that VGSH experiences smaller price fluctuations and is considered to be less risky than VUG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VGSH | VUG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.45% | 6.86% | -6.41% |
Volatility (6M)Calculated over the trailing 6-month period | 0.95% | 13.44% | -12.49% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.31% | 16.91% | -15.60% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.97% | 22.39% | -20.42% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.58% | 21.51% | -19.93% |
VGSH vs. VUG - Expense Ratio Comparison
Both VGSH and VUG have an expense ratio of 0.03%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
VGSH vs. VUG - Dividend Comparison
VGSH's dividend yield for the trailing twelve months is around 3.88%, more than VUG's 0.39% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VGSH Vanguard Short-Term Treasury ETF | 3.88% | 4.00% | 4.18% | 3.31% | 1.15% | 0.66% | 1.74% | 2.28% | 1.79% | 1.10% | 0.84% | 0.69% |
VUG Vanguard Growth ETF | 0.39% | 0.41% | 0.47% | 0.58% | 0.70% | 0.48% | 0.66% | 0.95% | 1.32% | 1.14% | 1.39% | 1.30% |
Frequently Asked Questions
VGSH and VUG have a correlation of 0.10, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VUG has higher volatility (6.86%) compared to VGSH (0.45%). In terms of maximum drawdown, VGSH dropped -5.70% vs VUG's -50.68%.
On 10-year performance, VUG leads with 18.02% vs 1.70% for VGSH. Both ETFs have the same 0.03% expense ratio. On volatility, VGSH has been the lower-risk option at 0.45%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VUG has performed better with a 18.02% return vs 1.70%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VGSH and VUG have the same expense ratio: 0.03% per year.
VGSH has the higher dividend yield at 3.88%, compared with 0.39% for VUG.
VGSH is categorized as Government Bonds, while VUG is Large Cap Growth Equities. VGSH tracks Bloomberg U.S. Treasury 1-3 Year Index, while VUG tracks CRSP US Large Cap Growth Index.
VGSH currently has the higher Sharpe Ratio (2.29 vs 1.19), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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