VSMIX vs. TSDLX

Last updated Jun 4, 2026

VSMIX (Vanguard Short-Term Investment-Grade Fund Investor Shares) and TSDLX (T. Rowe Price Short Duration Income Fund) are both Short-Term Bond funds. Over the past 5 years, VSMIX returned 19.87%/yr vs 3.33%/yr for TSDLX. At a 0.04 correlation, their price movements are largely independent. VSMIX charges 0.20%/yr vs 0.40%/yr for TSDLX.

Performance

VSMIX vs. TSDLX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Short-Term Investment-Grade Fund Investor Shares (VSMIX) and T. Rowe Price Short Duration Income Fund (TSDLX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VSMIX achieves a 31.47% return, which is significantly higher than TSDLX's 0.90% return.

VSMIX

• 1D: 3.56%
• 1M: 7.76%
• YTD: 31.47%
• 6M: 33.25%
• 1Y: 62.50%
• 3Y*: 33.02%
• 5Y*: 19.87%
• 10Y*: 18.06%

TSDLX

• 1D: 0.00%
• 1M: 0.39%
• YTD: 0.90%
• 6M: 1.84%
• 1Y: 6.54%
• 3Y*: 6.92%
• 5Y*: 3.33%
• 10Y*: —

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

VSMIX vs. TSDLX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
VSMIX Vanguard Short-Term Investment-Grade Fund Investor Shares	31.47%	18.01%	24.82%	23.14%	4.58%	36.67%	2.97%
TSDLX T. Rowe Price Short Duration Income Fund	0.90%	8.12%	7.69%	6.68%	-5.69%	0.77%	0.10%

Correlation

The correlation between VSMIX and TSDLX is 0.09, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.09
Correlation (3Y) Calculated over the trailing 3-year period	0.06
Correlation (5Y) Calculated over the trailing 5-year period	0.05
Correlation (All Time) Calculated using the full available price history since Dec 9, 2020	0.04

Return for Risk

VSMIX vs. TSDLX — Risk / Return Rank

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

VSMIX

VSMIX Risk / Return Rank: 89
VSMIX Sharpe Ratio Rank: 93
VSMIX Sortino Ratio Rank: 84
VSMIX Omega Ratio Rank: 80
VSMIX Calmar Ratio Rank: 95
VSMIX Martin Ratio Rank: 93

TSDLX

TSDLX Risk / Return Rank: 96
TSDLX Sharpe Ratio Rank: 94
TSDLX Sortino Ratio Rank: 98
TSDLX Omega Ratio Rank: 97
TSDLX Calmar Ratio Rank: 93
TSDLX Martin Ratio Rank: 95

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.

VSMIX vs. TSDLX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Investment-Grade Fund Investor Shares (VSMIX) and T. Rowe Price Short Duration Income Fund (TSDLX). 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.

	VSMIX	TSDLX	Difference
Sharpe ratio: Return per unit of total volatility	3.21	3.32	-0.11
Sortino ratio: Return per unit of downside risk	3.98	7.09	-3.11
Omega ratio: Gain probability vs. loss probability	1.53	1.99	-0.46
Calmar ratio: Return relative to maximum drawdown	5.82	5.28	+0.54
Martin ratio: Return relative to average drawdown	20.62	22.28	-1.66
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VSMIX vs. TSDLX - Sharpe Ratio Comparison

The current VSMIX Sharpe Ratio is 3.21, which is comparable to the TSDLX Sharpe Ratio of 3.32. The chart below compares the historical Sharpe Ratios of VSMIX and TSDLX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VSMIX	TSDLX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.21	3.32	-0.11
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.86	1.45	-0.59
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.68	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.49	1.48	-0.99

Drawdowns

VSMIX vs. TSDLX - Drawdown Comparison

The maximum VSMIX drawdown since its inception was -57.53%, which is greater than TSDLX's maximum drawdown of -7.86%. Use the drawdown chart below to compare losses from any high point for VSMIX and TSDLX.

Drawdown Indicators

	VSMIX	TSDLX	Difference
Max Drawdown Largest peak-to-trough decline	-57.53%	-7.86%	-49.67%
Max Drawdown (1Y) Largest decline over 1 year	-11.39%	-1.26%	-10.13%
Max Drawdown (3Y) Largest decline over 3 years	-25.26%	-1.26%	-24.00%
Max Drawdown (5Y) Largest decline over 5 years	-25.26%	-7.86%	-17.40%
Max Drawdown (10Y) Largest decline over 10 years	-57.53%	—	—
Current Drawdown Current decline from peak	0.00%	-0.11%	+0.11%
Average Drawdown Average peak-to-trough decline	-9.52%	-1.68%	-7.84%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.20%	0.29%	+2.91%

Volatility

VSMIX vs. TSDLX - Volatility Comparison

Vanguard Short-Term Investment-Grade Fund Investor Shares (VSMIX) has a higher volatility of 6.33% compared to T. Rowe Price Short Duration Income Fund (TSDLX) at 0.56%. This indicates that VSMIX's price experiences larger fluctuations and is considered to be riskier than TSDLX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VSMIX	TSDLX	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.33%	0.56%	+5.77%
Volatility (6M) Calculated over the trailing 6-month period	15.87%	1.41%	+14.46%
Volatility (1Y) Calculated over the trailing 1-year period	20.66%	2.00%	+18.66%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.18%	2.33%	+20.85%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.72%	2.23%	+24.49%

VSMIX vs. TSDLX - Expense Ratio Comparison

VSMIX has a 0.20% expense ratio, which is lower than TSDLX's 0.40% expense ratio.

Dividends

VSMIX vs. TSDLX - Dividend Comparison

VSMIX's dividend yield for the trailing twelve months is around 6.49%, more than TSDLX's 6.36% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TSDLX T. Rowe Price Short Duration Income Fund	6.36%	6.50%	6.73%	4.78%	1.82%	1.69%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VSMIX Vanguard Short-Term Investment-Grade Fund Investor Shares	6.49%	8.53%	7.40%	4.71%	9.53%	15.84%	0.40%	2.37%	26.83%	15.94%	1.65%	10.91%

Frequently Asked Questions

Can I hold both VSMIX and TSDLX in my portfolio?

VSMIX and TSDLX have a correlation of 0.09, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VSMIX or TSDLX?

VSMIX has higher volatility (6.33%) compared to TSDLX (0.56%). In terms of maximum drawdown, VSMIX dropped -57.53% vs TSDLX's -7.86%.

Which has better risk-adjusted returns?

TSDLX currently has the higher Sharpe Ratio (3.32 vs 3.21), 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.