VGSH vs. XLP
VGSH (Vanguard Short-Term Treasury ETF) and XLP (State Street Consumer Staples Select Sector SPDR ETF) are both exchange-traded funds - VGSH is a Government Bonds fund tracking the Bloomberg U.S. Treasury 1-3 Year Index, while XLP is a Consumer Staples Equities fund tracking the Consumer Staples Select Sector Index. Both are passively managed. Over the past 10 years, VGSH returned 1.71%/yr vs 7.21%/yr for XLP. At a correlation of -0.02, they often move in opposite directions. VGSH charges 0.03%/yr vs 0.08%/yr for XLP.
Performance
VGSH vs. XLP - Performance Comparison
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Returns By Period
In the year-to-date period, VGSH achieves a 0.36% return, which is significantly lower than XLP's 7.54% return. Over the past 10 years, VGSH has underperformed XLP with an annualized return of 1.71%, while XLP has yielded a comparatively higher 7.21% annualized return.
VGSH
- 1D
- 0.00%
- 1M
- -0.20%
- YTD
- 0.36%
- 6M
- 0.76%
- 1Y
- 3.41%
- 3Y*
- 4.14%
- 5Y*
- 1.79%
- 10Y*
- 1.71%
XLP
- 1D
- -0.44%
- 1M
- -1.32%
- YTD
- 7.54%
- 6M
- 8.22%
- 1Y
- 4.50%
- 3Y*
- 7.23%
- 5Y*
- 6.10%
- 10Y*
- 7.21%
VGSH vs. XLP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VGSH Vanguard Short-Term Treasury ETF | 0.36% | 5.07% | 4.00% | 4.31% | -3.86% | -0.60% | 3.04% | 3.52% | 1.55% | 0.04% |
XLP State Street Consumer Staples Select Sector SPDR ETF | 7.54% | 1.52% | 12.20% | -0.82% | -0.81% | 17.20% | 10.11% | 27.43% | -8.07% | 12.98% |
Correlation
The correlation between VGSH and XLP is 0.27, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.27 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.15 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.16 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.06 |
Correlation (All Time) Calculated using the full available price history since Nov 23, 2009 | -0.02 |
The correlation between VGSH and XLP shifts across timeframes, from -0.02 (all time) to 0.27 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
VGSH vs. XLP — Risk / Return Rank
VGSH
XLP
VGSH vs. XLP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Treasury ETF (VGSH) and State Street Consumer Staples Select Sector SPDR ETF (XLP). 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.
| VGSH | XLP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.34 | ||
| Sortino ratioReturn per unit of downside risk | +3.85 | ||
| Omega ratioGain probability vs. loss probability | 1.57 | 1.07 | +0.51 |
| Calmar ratioReturn relative to maximum drawdown | 3.88 | 0.47 | +3.41 |
| Martin ratioReturn relative to average drawdown | 15.29 | 0.91 | +14.39 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VGSH | XLP | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.69 | 0.36 | +2.34 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.91 | 0.46 | +0.45 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 1.09 | 0.49 | +0.60 |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.01 | 0.44 | +0.57 |
Drawdowns
VGSH vs. XLP - Drawdown Comparison
The maximum VGSH drawdown since its inception was -5.70%, smaller than the maximum XLP drawdown of -35.90%. Use the drawdown chart below to compare losses from any high point for VGSH and XLP.
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Drawdown Indicators
| VGSH | XLP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.70% | -35.90% | +30.20% |
Max Drawdown (1Y)Largest decline over 1 year | -0.88% | -9.69% | +8.81% |
Max Drawdown (3Y)Largest decline over 3 years | -0.97% | -12.39% | +11.42% |
Max Drawdown (5Y)Largest decline over 5 years | -5.66% | -16.30% | +10.64% |
Max Drawdown (10Y)Largest decline over 10 years | -5.70% | -24.51% | +18.81% |
Current DrawdownCurrent decline from peak | -0.41% | -7.19% | +6.78% |
Average DrawdownAverage peak-to-trough decline | -0.60% | -7.06% | +6.46% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.22% | 4.97% | -4.75% |
Volatility
VGSH vs. XLP - Volatility Comparison
The current volatility for Vanguard Short-Term Treasury ETF (VGSH) is 0.35%, while State Street Consumer Staples Select Sector SPDR ETF (XLP) has a volatility of 4.30%. This indicates that VGSH experiences smaller price fluctuations and is considered to be less risky than XLP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VGSH | XLP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.35% | 4.30% | -3.95% |
Volatility (6M)Calculated over the trailing 6-month period | 0.89% | 9.97% | -9.08% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.28% | 12.75% | -11.47% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.97% | 13.31% | -11.34% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.58% | 14.74% | -13.16% |
VGSH vs. XLP - Expense Ratio Comparison
VGSH has a 0.03% expense ratio, which is lower than XLP's 0.08% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
VGSH vs. XLP - Dividend Comparison
VGSH's dividend yield for the trailing twelve months is around 3.88%, more than XLP's 2.62% 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% |
XLP State Street Consumer Staples Select Sector SPDR ETF | 2.62% | 2.75% | 2.77% | 2.63% | 2.47% | 2.28% | 2.50% | 2.57% | 3.04% | 2.62% | 2.53% | 2.52% |
Frequently Asked Questions
VGSH and XLP have a correlation of 0.27, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XLP has higher volatility (4.30%) compared to VGSH (0.35%). In terms of maximum drawdown, VGSH dropped -5.70% vs XLP's -35.90%.
On 10-year performance, XLP leads with 7.21% vs 1.71% for VGSH. On fees, VGSH is cheaper at 0.03% per year. On volatility, VGSH has been the lower-risk option at 0.35%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, XLP has performed better with a 7.21% return vs 1.71%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VGSH is cheaper with a 0.03% expense ratio, compared with 0.08% for XLP.
VGSH has the higher dividend yield at 3.88%, compared with 2.62% for XLP.
VGSH is categorized as Government Bonds, while XLP is Consumer Staples Equities. VGSH tracks Bloomberg U.S. Treasury 1-3 Year Index, while XLP tracks Consumer Staples Select Sector Index. They also come from different issuers: Vanguard and State Street. Their fees differ too: 0.03% for VGSH and 0.08% for XLP.
VGSH currently has the higher Sharpe Ratio (2.69 vs 0.36), 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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