VGSH vs. SCHO
VGSH (Vanguard Short-Term Treasury ETF) and SCHO (Schwab Short-Term U.S. Treasury ETF) are both Government Bonds funds tracking the Bloomberg U.S. Treasury 1-3 Year Index, from Vanguard and Charles Schwab respectively. Both are passively managed. Over the past 10 years, VGSH returned 1.72%/yr vs 1.70%/yr for SCHO. A 0.78 correlation means they provide meaningful diversification when combined. Both charge a 0.03% expense ratio.
Performance
VGSH vs. SCHO - Performance Comparison
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Returns By Period
In the year-to-date period, VGSH achieves a 0.36% return, which is significantly higher than SCHO's 0.29% return. Both investments have delivered pretty close results over the past 10 years, with VGSH having a 1.72% annualized return and SCHO not far behind at 1.70%.
VGSH
- 1D
- -0.17%
- 1M
- -0.13%
- YTD
- 0.36%
- 6M
- 0.74%
- 1Y
- 3.41%
- 3Y*
- 4.11%
- 5Y*
- 1.79%
- 10Y*
- 1.72%
SCHO
- 1D
- -0.21%
- 1M
- -0.15%
- YTD
- 0.29%
- 6M
- 0.69%
- 1Y
- 3.39%
- 3Y*
- 4.10%
- 5Y*
- 1.78%
- 10Y*
- 1.70%
VGSH vs. SCHO - 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% |
SCHO Schwab Short-Term U.S. Treasury ETF | 0.29% | 5.49% | 3.65% | 4.31% | -3.87% | -0.64% | 3.11% | 3.47% | 1.37% | 0.33% |
Correlation
The correlation between VGSH and SCHO is 0.87, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.87 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.93 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.94 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.87 |
Correlation (All Time) Calculated using the full available price history since Aug 6, 2010 | 0.78 |
The correlation between VGSH and SCHO shifts across timeframes, from 0.78 (all time) to 0.94 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
VGSH vs. SCHO — Risk / Return Rank
VGSH
SCHO
VGSH vs. SCHO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Treasury ETF (VGSH) and Schwab Short-Term U.S. Treasury ETF (SCHO). 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 | SCHO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.23 | ||
| Sortino ratioReturn per unit of downside risk | +0.41 | ||
| Omega ratioGain probability vs. loss probability | 1.53 | 1.46 | +0.07 |
| Calmar ratioReturn relative to maximum drawdown | 3.68 | 3.71 | -0.04 |
| Martin ratioReturn relative to average drawdown | 14.60 | 15.90 | -1.30 |
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 | SCHO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.53 | 2.30 | +0.23 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.91 | 0.90 | +0.01 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 1.10 | 1.09 | +0.01 |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.01 | 0.99 | +0.02 |
Drawdowns
VGSH vs. SCHO - Drawdown Comparison
The maximum VGSH drawdown since its inception was -5.70%, roughly equal to the maximum SCHO drawdown of -5.69%. Use the drawdown chart below to compare losses from any high point for VGSH and SCHO.
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Drawdown Indicators
| VGSH | SCHO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.70% | -5.69% | -0.01% |
Max Drawdown (1Y)Largest decline over 1 year | -0.88% | -0.86% | -0.02% |
Max Drawdown (3Y)Largest decline over 3 years | -0.97% | -0.98% | +0.01% |
Max Drawdown (5Y)Largest decline over 5 years | -5.66% | -5.69% | +0.03% |
Max Drawdown (10Y)Largest decline over 10 years | -5.70% | -5.69% | -0.01% |
Current DrawdownCurrent decline from peak | -0.41% | -0.39% | -0.02% |
Average DrawdownAverage peak-to-trough decline | -0.60% | -0.61% | +0.01% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.22% | 0.20% | +0.02% |
Volatility
VGSH vs. SCHO - Volatility Comparison
The current volatility for Vanguard Short-Term Treasury ETF (VGSH) is 0.36%, while Schwab Short-Term U.S. Treasury ETF (SCHO) has a volatility of 0.45%. This indicates that VGSH experiences smaller price fluctuations and is considered to be less risky than SCHO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VGSH | SCHO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.36% | 0.45% | -0.09% |
Volatility (6M)Calculated over the trailing 6-month period | 0.90% | 0.93% | -0.03% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.29% | 1.39% | -0.10% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.97% | 1.98% | -0.01% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.58% | 1.56% | +0.02% |
VGSH vs. SCHO - Expense Ratio Comparison
Both VGSH and SCHO 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. SCHO - Dividend Comparison
VGSH's dividend yield for the trailing twelve months is around 3.88%, which matches SCHO's 3.91% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SCHO Schwab Short-Term U.S. Treasury ETF | 3.91% | 4.06% | 4.29% | 3.76% | 1.34% | 0.41% | 1.27% | 2.27% | 1.60% | 1.12% | 0.82% | 0.68% |
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% |
Frequently Asked Questions
VGSH and SCHO have a correlation of 0.87, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SCHO has higher volatility (0.45%) compared to VGSH (0.36%). In terms of maximum drawdown, VGSH dropped -5.70% vs SCHO's -5.69%.
On 10-year performance, VGSH leads with 1.72% vs 1.70% for SCHO. Both ETFs have the same 0.03% expense ratio. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VGSH has performed better with a 1.72% return vs 1.70%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VGSH and SCHO have the same expense ratio: 0.03% per year.
SCHO has the higher dividend yield at 3.91%, compared with 3.88% for VGSH.
Both ETFs track Bloomberg U.S. Treasury 1-3 Year Index. They also come from different issuers: Vanguard and Charles Schwab.
VGSH currently has the higher Sharpe Ratio (2.53 vs 2.30), 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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