VGVT vs. IBTO

Last updated Jul 14, 2026

VGVT (Vanguard Government Securities Active ETF) and IBTO (iShares iBonds Dec 2033 Term Treasury ETF) are both Intermediate Core Bond funds. VGVT is actively managed, while IBTO is passively managed. Over the past year, VGVT returned 3.46% vs 2.83% for IBTO. Their correlation of 0.89 suggests significant overlap in exposure. VGVT charges 0.10%/yr vs 0.07%/yr for IBTO.

Performance

VGVT vs. IBTO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Government Securities Active ETF (VGVT) and iShares iBonds Dec 2033 Term Treasury ETF (IBTO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VGVT achieves a -0.14% return, which is significantly higher than IBTO's -0.95% return.

VGVT

• 1D: -0.19%
• 1M: -0.33%
• 6M: -0.37%
• YTD: -0.14%
• 1Y: 3.46%
• 3Y*: —
• 5Y*: —
• 10Y*: —

IBTO

• 1D: -0.38%
• 1M: -0.52%
• 6M: -0.95%
• YTD: -0.95%
• 1Y: 2.83%
• 3Y*: 2.51%
• 5Y*: —
• 10Y*: —

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

VGVT vs. IBTO - Yearly Performance Comparison

	2026 (YTD)	2025
VGVT Vanguard Government Securities Active ETF	-0.14%	3.56%
IBTO iShares iBonds Dec 2033 Term Treasury ETF	-0.95%	3.81%

Correlation

The correlation between VGVT and IBTO is 0.89, 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	0.89
Correlation (All Time) Calculated using the full available price history since Jul 9, 2025	0.89

The correlation between VGVT and IBTO has been stable across timeframes, ranging from 0.89 to 0.89 - a consistent structural relationship.

Return for Risk

VGVT vs. IBTO — Risk / Return Rank

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

VGVT

VGVT Risk / Return Rank: 34
VGVT Sharpe Ratio Rank: 36
VGVT Sortino Ratio Rank: 38
VGVT Omega Ratio Rank: 34
VGVT Calmar Ratio Rank: 31
VGVT Martin Ratio Rank: 29

IBTO

IBTO Risk / Return Rank: 21
IBTO Sharpe Ratio Rank: 23
IBTO Sortino Ratio Rank: 21
IBTO Omega Ratio Rank: 20
IBTO Calmar Ratio Rank: 21
IBTO Martin Ratio Rank: 21

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.

VGVT vs. IBTO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Government Securities Active ETF (VGVT) and iShares iBonds Dec 2033 Term Treasury ETF (IBTO). 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.

	VGVT	IBTO	Difference
Sharpe ratio: Return per unit of total volatility	1.07	0.65	+0.42
Sortino ratio: Return per unit of downside risk	1.60	0.98	+0.61
Omega ratio: Gain probability vs. loss probability	1.19	1.11	+0.07
Calmar ratio: Return relative to maximum drawdown	1.25	0.78	+0.48
Martin ratio: Return relative to average drawdown	3.30	1.94	+1.36

VGVT vs. IBTO - Sharpe Ratio Comparison

The current VGVT Sharpe Ratio is 1.07, which is higher than the IBTO Sharpe Ratio of 0.65. The chart below compares the historical Sharpe Ratios of VGVT and IBTO, 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

VGVT vs. IBTO - Drawdown Comparison

The maximum VGVT drawdown since its inception was -2.77%, smaller than the maximum IBTO drawdown of -8.36%. Use the drawdown chart below to compare losses from any high point for VGVT and IBTO.

Drawdown Indicators

	VGVT	IBTO	Difference
Max Drawdown Largest peak-to-trough decline	-2.77%	-8.36%	+5.59%
Max Drawdown (1Y) Largest decline over 1 year	-2.77%	-3.66%	+0.89%
Max Drawdown (3Y) Largest decline over 3 years	—	-8.36%	—
Current Drawdown Current decline from peak	-2.00%	-2.99%	+0.99%
Average Drawdown Average peak-to-trough decline	-0.77%	-2.37%	+1.60%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.05%	1.46%	-0.41%

Volatility

VGVT vs. IBTO - Volatility Comparison

The current volatility for Vanguard Government Securities Active ETF (VGVT) is 1.02%, while iShares iBonds Dec 2033 Term Treasury ETF (IBTO) has a volatility of 1.45%. This indicates that VGVT experiences smaller price fluctuations and is considered to be less risky than IBTO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VGVT	IBTO	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.02%	1.45%	-0.43%
Volatility (6M) Calculated over the trailing 6-month period	2.49%	3.24%	-0.75%
Volatility (1Y) Calculated over the trailing 1-year period	3.24%	4.38%	-1.14%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.25%	6.55%	-3.30%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.25%	6.55%	-3.30%

VGVT vs. IBTO - Expense Ratio Comparison

VGVT has a 0.10% expense ratio, which is higher than IBTO's 0.07% 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

VGVT vs. IBTO - Dividend Comparison

VGVT's dividend yield for the trailing twelve months is around 4.38%, more than IBTO's 4.17% yield.

Position	TTM	2025	2024	2023
IBTO iShares iBonds Dec 2033 Term Treasury ETF	4.17%	4.05%	4.23%	1.66%
VGVT Vanguard Government Securities Active ETF	4.38%	2.29%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VGVT and IBTO in my portfolio?

VGVT and IBTO have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VGVT or IBTO?

IBTO has higher volatility (1.45%) compared to VGVT (1.02%). In terms of maximum drawdown, VGVT dropped -2.77% vs IBTO's -8.36%.

Which ETF is better, VGVT or IBTO?

On 1-year performance, VGVT leads with 3.46% vs 2.83% for IBTO. On fees, IBTO is cheaper at 0.07% per year. On volatility, VGVT has been the lower-risk option at 1.02%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VGVT or IBTO?

Over the 1-year period, VGVT has performed better with a 3.46% return vs 2.83%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VGVT or IBTO?

IBTO is cheaper with a 0.07% expense ratio, compared with 0.10% for VGVT.

Which ETF pays a higher dividend yield, VGVT or IBTO?

VGVT has the higher dividend yield at 4.38%, compared with 4.17% for IBTO.

What is the main difference between VGVT and IBTO?

They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.10% for VGVT and 0.07% for IBTO.

Which has better risk-adjusted returns?

VGVT currently has the higher Sharpe Ratio (1.07 vs 0.65), 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.