VGUS vs. XHLF

Last updated Jun 23, 2026

VGUS (Vanguard Ultra-Short Treasury ETF) and XHLF (BondBloxx Bloomberg Six Month Target Duration US Treasury ETF) are both exchange-traded funds - VGUS is a Ultrashort Bond fund tracking the Bloomberg Short Treasury Index, while XHLF is a Government Bonds fund tracking the Bloomberg US Treasury 6 Month Duration Index. Both are passively managed. Over the past year, VGUS returned 3.86% vs 3.81% for XHLF. At a 0.31 correlation, their price movements are largely independent. VGUS charges 0.07%/yr vs 0.03%/yr for XHLF.

Performance

VGUS vs. XHLF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Ultra-Short Treasury ETF (VGUS) and BondBloxx Bloomberg Six Month Target Duration US Treasury ETF (XHLF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VGUS achieves a 1.59% return, which is significantly higher than XHLF's 1.51% return.

VGUS

• 1D: 0.01%
• 1M: 0.18%
• YTD: 1.59%
• 6M: 1.69%
• 1Y: 3.86%
• 3Y*: —
• 5Y*: —
• 10Y*: —

XHLF

• 1D: 0.00%
• 1M: 0.20%
• YTD: 1.51%
• 6M: 1.61%
• 1Y: 3.81%
• 3Y*: 4.57%
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

VGUS vs. XHLF - Yearly Performance Comparison

	2026 (YTD)	2025
VGUS Vanguard Ultra-Short Treasury ETF	1.59%	3.78%
XHLF BondBloxx Bloomberg Six Month Target Duration US Treasury ETF	1.51%	3.80%

Correlation

The correlation between VGUS and XHLF 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 (All Time) Calculated using the full available price history since Feb 11, 2025	0.31

Return for Risk

VGUS vs. XHLF — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VGUS

VGUS Risk / Return Rank: 99
VGUS Sharpe Ratio Rank: 100
VGUS Sortino Ratio Rank: 99
VGUS Omega Ratio Rank: 99
VGUS Calmar Ratio Rank: 99
VGUS Martin Ratio Rank: 100

XHLF

XHLF Risk / Return Rank: 100
XHLF Sharpe Ratio Rank: 100
XHLF Sortino Ratio Rank: 100
XHLF Omega Ratio Rank: 99
XHLF Calmar Ratio Rank: 100
XHLF Martin Ratio Rank: 100

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

VGUS vs. XHLF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Ultra-Short Treasury ETF (VGUS) and BondBloxx Bloomberg Six Month Target Duration US Treasury ETF (XHLF). 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.

	VGUS	XHLF	Difference
Sharpe ratio: Return per unit of total volatility	11.86	12.03	-0.17
Sortino ratio: Return per unit of downside risk	34.14	43.46	-9.32
Omega ratio: Gain probability vs. loss probability	10.51	10.92	-0.41
Calmar ratio: Return relative to maximum drawdown	53.22	96.20	-42.98
Martin ratio: Return relative to average drawdown	402.91	638.15	-235.24

VGUS vs. XHLF - Sharpe Ratio Comparison

The current VGUS Sharpe Ratio is 11.86, which is comparable to the XHLF Sharpe Ratio of 12.03. The chart below compares the historical Sharpe Ratios of VGUS and XHLF, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VGUS vs. XHLF - Drawdown Comparison

The maximum VGUS drawdown since its inception was -0.07%, smaller than the maximum XHLF drawdown of -0.11%. Use the drawdown chart below to compare losses from any high point for VGUS and XHLF.

Drawdown Indicators

	VGUS	XHLF	Difference
Max Drawdown Largest peak-to-trough decline	-0.07%	-0.11%	+0.04%
Max Drawdown (1Y) Largest decline over 1 year	-0.07%	-0.04%	-0.03%
Max Drawdown (3Y) Largest decline over 3 years	—	-0.06%	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-0.00%	-0.01%	+0.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.01%	0.01%	0.00%

Volatility

VGUS vs. XHLF - Volatility Comparison

Vanguard Ultra-Short Treasury ETF (VGUS) has a higher volatility of 0.12% compared to BondBloxx Bloomberg Six Month Target Duration US Treasury ETF (XHLF) at 0.09%. This indicates that VGUS's price experiences larger fluctuations and is considered to be riskier than XHLF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VGUS	XHLF	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.12%	0.09%	+0.03%
Volatility (6M) Calculated over the trailing 6-month period	0.18%	0.22%	-0.04%
Volatility (1Y) Calculated over the trailing 1-year period	0.33%	0.32%	+0.01%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.34%	0.42%	-0.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.34%	0.42%	-0.08%

VGUS vs. XHLF - Expense Ratio Comparison

VGUS has a 0.07% expense ratio, which is higher than XHLF's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VGUS vs. XHLF - Dividend Comparison

VGUS's dividend yield for the trailing twelve months is around 3.60%, less than XHLF's 3.84% yield.

Position	TTM	2025	2024	2023	2022
VGUS Vanguard Ultra-Short Treasury ETF	3.60%	3.12%	0.00%	0.00%	0.00%
XHLF BondBloxx Bloomberg Six Month Target Duration US Treasury ETF	3.84%	3.98%	4.96%	4.50%	0.86%

Frequently Asked Questions

Can I hold both VGUS and XHLF in my portfolio?

VGUS and XHLF 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.

Which is riskier, VGUS or XHLF?

VGUS has higher volatility (0.12%) compared to XHLF (0.09%). In terms of maximum drawdown, VGUS dropped -0.07% vs XHLF's -0.11%.

Which ETF is better, VGUS or XHLF?

On 1-year performance, VGUS leads with 3.86% vs 3.81% for XHLF. On fees, XHLF is cheaper at 0.03% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VGUS or XHLF?

Over the 1-year period, VGUS has performed better with a 3.86% return vs 3.81%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VGUS or XHLF?

XHLF is cheaper with a 0.03% expense ratio, compared with 0.07% for VGUS.

Which ETF pays a higher dividend yield, VGUS or XHLF?

XHLF has the higher dividend yield at 3.84%, compared with 3.60% for VGUS.

What is the main difference between VGUS and XHLF?

VGUS is categorized as Ultrashort Bond, while XHLF is Government Bonds. VGUS tracks Bloomberg Short Treasury Index, while XHLF tracks Bloomberg US Treasury 6 Month Duration Index. They also come from different issuers: Vanguard and BondBloxx. Their fees differ too: 0.07% for VGUS and 0.03% for XHLF.

Which has better risk-adjusted returns?

XHLF currently has the higher Sharpe Ratio (12.03 vs 11.86), 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.