VSDB vs. SPTS

Last updated Jun 23, 2026

VSDB (Vanguard Short Duration Bond ETF Shares) and SPTS (SPDR Portfolio Short Term Treasury ETF) are both exchange-traded funds - VSDB is a Short-Term Bond fund actively managed by Vanguard, while SPTS is a Government Bonds fund tracking the Bloomberg 1-3 Year U.S. Treasury Index. VSDB is actively managed, while SPTS is passively managed. Over the past year, VSDB returned 4.75% vs 3.10% for SPTS. A 0.76 correlation means they provide meaningful diversification when combined. VSDB charges 0.15%/yr vs 0.03%/yr for SPTS.

Performance

VSDB vs. SPTS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Short Duration Bond ETF Shares (VSDB) and SPDR Portfolio Short Term Treasury ETF (SPTS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VSDB achieves a 0.95% return, which is significantly higher than SPTS's 0.41% return.

VSDB

• 1D: -0.11%
• 1M: 0.30%
• YTD: 0.95%
• 6M: 1.15%
• 1Y: 4.75%
• 3Y*: —
• 5Y*: —
• 10Y*: —

SPTS

• 1D: -0.10%
• 1M: 0.12%
• YTD: 0.41%
• 6M: 0.55%
• 1Y: 3.10%
• 3Y*: 4.22%
• 5Y*: 1.85%
• 10Y*: 1.61%

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

VSDB vs. SPTS - Yearly Performance Comparison

	2026 (YTD)	2025
VSDB Vanguard Short Duration Bond ETF Shares	0.95%	4.88%
SPTS SPDR Portfolio Short Term Treasury ETF	0.41%	3.52%

Correlation

The correlation between VSDB and SPTS is 0.76, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.76
Correlation (All Time) Calculated using the full available price history since Apr 3, 2025	0.76

The correlation between VSDB and SPTS has been stable across timeframes, ranging from 0.76 to 0.76 - a consistent structural relationship.

Return for Risk

VSDB vs. SPTS — Risk / Return Rank

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

VSDB

VSDB Risk / Return Rank: 83
VSDB Sharpe Ratio Rank: 88
VSDB Sortino Ratio Rank: 92
VSDB Omega Ratio Rank: 91
VSDB Calmar Ratio Rank: 69
VSDB Martin Ratio Rank: 78

SPTS

SPTS Risk / Return Rank: 80
SPTS Sharpe Ratio Rank: 76
SPTS Sortino Ratio Rank: 88
SPTS Omega Ratio Rank: 83
SPTS Calmar Ratio Rank: 75
SPTS Martin Ratio Rank: 78

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.

VSDB vs. SPTS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Short Duration Bond ETF Shares (VSDB) and SPDR Portfolio Short Term Treasury ETF (SPTS). 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.

	VSDB	SPTS	Difference
Sharpe ratio: Return per unit of total volatility	2.74	2.33	+0.41
Sortino ratio: Return per unit of downside risk	4.25	3.81	+0.44
Omega ratio: Gain probability vs. loss probability	1.56	1.48	+0.08
Calmar ratio: Return relative to maximum drawdown	3.35	3.70	-0.35
Martin ratio: Return relative to average drawdown	14.67	14.46	+0.21

VSDB vs. SPTS - Sharpe Ratio Comparison

The current VSDB Sharpe Ratio is 2.74, which is comparable to the SPTS Sharpe Ratio of 2.33. The chart below compares the historical Sharpe Ratios of VSDB and SPTS, 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

VSDB vs. SPTS - Drawdown Comparison

The maximum VSDB drawdown since its inception was -1.42%, smaller than the maximum SPTS drawdown of -5.83%. Use the drawdown chart below to compare losses from any high point for VSDB and SPTS.

Drawdown Indicators

	VSDB	SPTS	Difference
Max Drawdown Largest peak-to-trough decline	-1.42%	-5.83%	+4.41%
Max Drawdown (1Y) Largest decline over 1 year	-1.42%	-0.84%	-0.58%
Max Drawdown (3Y) Largest decline over 3 years	—	-0.96%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-5.71%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-5.71%	—
Current Drawdown Current decline from peak	-0.26%	-0.31%	+0.05%
Average Drawdown Average peak-to-trough decline	-0.19%	-1.72%	+1.53%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.32%	0.21%	+0.11%

Volatility

VSDB vs. SPTS - Volatility Comparison

Vanguard Short Duration Bond ETF Shares (VSDB) has a higher volatility of 0.52% compared to SPDR Portfolio Short Term Treasury ETF (SPTS) at 0.46%. This indicates that VSDB's price experiences larger fluctuations and is considered to be riskier than SPTS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VSDB	SPTS	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.52%	0.46%	+0.06%
Volatility (6M) Calculated over the trailing 6-month period	1.39%	0.92%	+0.47%
Volatility (1Y) Calculated over the trailing 1-year period	1.75%	1.34%	+0.41%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.90%	1.99%	-0.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.90%	1.71%	+0.19%

VSDB vs. SPTS - Expense Ratio Comparison

VSDB has a 0.15% expense ratio, which is higher than SPTS'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

VSDB vs. SPTS - Dividend Comparison

VSDB's dividend yield for the trailing twelve months is around 4.16%, more than SPTS's 3.91% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPTS SPDR Portfolio Short Term Treasury ETF	3.91%	3.99%	4.25%	3.61%	1.27%	0.19%	0.70%	2.21%	2.04%	1.20%	0.95%	0.83%
VSDB Vanguard Short Duration Bond ETF Shares	4.16%	3.30%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VSDB and SPTS in my portfolio?

VSDB and SPTS have a correlation of 0.76, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VSDB or SPTS?

VSDB has higher volatility (0.52%) compared to SPTS (0.46%). In terms of maximum drawdown, VSDB dropped -1.42% vs SPTS's -5.83%.

Which ETF is better, VSDB or SPTS?

On 1-year performance, VSDB leads with 4.75% vs 3.10% for SPTS. On fees, SPTS 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, VSDB or SPTS?

Over the 1-year period, VSDB has performed better with a 4.75% return vs 3.10%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VSDB or SPTS?

SPTS is cheaper with a 0.03% expense ratio, compared with 0.15% for VSDB.

Which ETF pays a higher dividend yield, VSDB or SPTS?

VSDB has the higher dividend yield at 4.16%, compared with 3.91% for SPTS.

What is the main difference between VSDB and SPTS?

VSDB is categorized as Short-Term Bond, while SPTS is Government Bonds. They also come from different issuers: Vanguard and State Street. Their fees differ too: 0.15% for VSDB and 0.03% for SPTS.

Which has better risk-adjusted returns?

VSDB currently has the higher Sharpe Ratio (2.74 vs 2.33), 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.