VSDB vs. SPY

Last updated Apr 1, 2026

Compare and contrast key facts about Vanguard Short Duration Bond ETF Shares (VSDB) and State Street SPDR S&P 500 ETF (SPY).

VSDB and SPY are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VSDB is an actively managed fund by Vanguard. It was launched on Apr 1, 2025. SPY is a passively managed fund by State Street that tracks the performance of the S&P 500 Index. It was launched on Jan 22, 1993.

Performance

VSDB vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Short Duration Bond ETF Shares (VSDB) and State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

VSDB vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025
VSDB Vanguard Short Duration Bond ETF Shares	0.21%	4.85%
SPY State Street SPDR S&P 500 ETF	-4.37%	28.16%

Returns By Period

In the year-to-date period, VSDB achieves a 0.21% return, which is significantly higher than SPY's -4.37% return.

VSDB

• 1D: 0.28%
• 1M: -0.89%
• YTD: 0.21%
• 6M: 1.62%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

SPY

• 1D: 2.91%
• 1M: -4.94%
• YTD: -4.37%
• 6M: -1.82%
• 1Y: 17.59%
• 3Y*: 18.19%
• 5Y*: 11.69%
• 10Y*: 13.98%

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

VSDB vs. SPY - Expense Ratio Comparison

VSDB has a 0.15% expense ratio, which is higher than SPY's 0.09% 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%.

VSDB

Vanguard Short Duration Bond ETF Shares

SPY

State Street SPDR S&P 500 ETF

Return for Risk

VSDB vs. SPY — Risk / Return Rank

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

SPY

SPY Risk / Return Rank: 64
SPY Sharpe Ratio Rank: 56
SPY Sortino Ratio Rank: 60
SPY Omega Ratio Rank: 65
SPY Calmar Ratio Rank: 65
SPY Martin Ratio Rank: 75

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. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Short Duration Bond ETF Shares (VSDB) and State Street SPDR S&P 500 ETF (SPY). 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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	VSDB	SPY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	0.93	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.69	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.78	—
Sharpe Ratio (All Time) Calculated using the full available price history	2.70	0.56	+2.14

Correlation

The correlation between VSDB and SPY is 0.24, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.

Dividends

VSDB vs. SPY - Dividend Comparison

VSDB's dividend yield for the trailing twelve months is around 3.82%, more than SPY's 1.14% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VSDB Vanguard Short Duration Bond ETF Shares	3.82%	3.30%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SPY State Street SPDR S&P 500 ETF	1.14%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%

Drawdowns

VSDB vs. SPY - Drawdown Comparison

The maximum VSDB drawdown since its inception was -1.42%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for VSDB and SPY.

Drawdown Indicators

	VSDB	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-1.42%	-55.19%	+53.77%
Max Drawdown (1Y) Largest decline over 1 year	—	-12.05%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-24.50%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-33.72%	—
Current Drawdown Current decline from peak	-0.89%	-6.24%	+5.35%
Average Drawdown Average peak-to-trough decline	-0.17%	-9.09%	+8.92%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	2.52%	—

Volatility

Volatility by Period

	VSDB	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	5.31%	—
Volatility (6M) Calculated over the trailing 6-month period	—	9.47%	—
Volatility (1Y) Calculated over the trailing 1-year period	1.91%	19.05%	-17.14%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.91%	17.06%	-15.15%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.91%	17.92%	-16.01%