VTBIX vs. FSHBX

Last updated Jul 17, 2026

VTBIX (Vanguard Total Bond Market II Index Fund Investor Shares) and FSHBX (Fidelity Short-Term Bond Fund) are both Total Bond Market funds. Over the past 10 years, VTBIX returned 1.30%/yr vs 2.11%/yr for FSHBX. A 0.67 correlation means they provide meaningful diversification when combined. VTBIX charges 0.09%/yr vs 0.45%/yr for FSHBX.

Performance

VTBIX vs. FSHBX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Total Bond Market II Index Fund Investor Shares (VTBIX) and Fidelity Short-Term Bond Fund (FSHBX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

Over the past 10 years, VTBIX has underperformed FSHBX with an annualized return of 1.30%, while FSHBX has yielded a comparatively higher 2.11% annualized return.

VTBIX

• 1D: 0.21%
• 1M: -0.40%
• 6M: -0.10%
• YTD: -0.00%
• 1Y: 4.16%
• 3Y*: 3.72%
• 5Y*: -0.35%
• 10Y*: 1.30%

FSHBX

• 1D: 0.12%
• 1M: 0.21%
• 6M: 0.89%
• YTD: 0.77%
• 1Y: 3.47%
• 3Y*: 4.81%
• 5Y*: 2.29%
• 10Y*: 2.11%

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

VTBIX vs. FSHBX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VTBIX Vanguard Total Bond Market II Index Fund Investor Shares	-0.00%	7.11%	1.25%	5.03%	-13.18%	-1.88%	7.47%	8.62%	-0.32%	3.53%
FSHBX Fidelity Short-Term Bond Fund	0.77%	5.49%	4.73%	5.35%	-3.86%	-0.92%	3.59%	4.20%	1.21%	1.16%

Correlation

The correlation between VTBIX and FSHBX is 0.74, 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	0.74
Correlation (3Y) Calculated over the trailing 3-year period	0.74
Correlation (5Y) Calculated over the trailing 5-year period	0.76
Correlation (10Y) Calculated over the trailing 10-year period	0.70
Correlation (All Time) Calculated using the full available price history since Aug 3, 2012	0.67

The correlation between VTBIX and FSHBX has been stable across timeframes, ranging from 0.67 to 0.76 - a consistent structural relationship.

Return for Risk

VTBIX vs. FSHBX — Risk / Return Rank

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

VTBIX

VTBIX Risk / Return Rank: 26
VTBIX Sharpe Ratio Rank: 27
VTBIX Sortino Ratio Rank: 29
VTBIX Omega Ratio Rank: 24
VTBIX Calmar Ratio Rank: 27
VTBIX Martin Ratio Rank: 22

FSHBX

FSHBX Risk / Return Rank: 82
FSHBX Sharpe Ratio Rank: 72
FSHBX Sortino Ratio Rank: 85
FSHBX Omega Ratio Rank: 85
FSHBX Calmar Ratio Rank: 83
FSHBX Martin Ratio Rank: 83

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.

VTBIX vs. FSHBX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Bond Market II Index Fund Investor Shares (VTBIX) and Fidelity Short-Term Bond Fund (FSHBX). 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.

	VTBIX	FSHBX	Difference
Sharpe ratio: Return per unit of total volatility	1.14	1.89	-0.75
Sortino ratio: Return per unit of downside risk	1.70	3.32	-1.62
Omega ratio: Gain probability vs. loss probability	1.20	1.46	-0.27
Calmar ratio: Return relative to maximum drawdown	1.51	3.08	-1.57
Martin ratio: Return relative to average drawdown	4.06	11.71	-7.65

VTBIX vs. FSHBX - Sharpe Ratio Comparison

The current VTBIX Sharpe Ratio is 1.14, which is lower than the FSHBX Sharpe Ratio of 1.89. The chart below compares the historical Sharpe Ratios of VTBIX and FSHBX, 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

VTBIX vs. FSHBX - Drawdown Comparison

The maximum VTBIX drawdown since its inception was -18.72%, which is greater than FSHBX's maximum drawdown of -8.80%. Use the drawdown chart below to compare losses from any high point for VTBIX and FSHBX.

Drawdown Indicators

	VTBIX	FSHBX	Difference
Max Drawdown Largest peak-to-trough decline	-18.72%	-8.80%	-9.92%
Max Drawdown (1Y) Largest decline over 1 year	-2.84%	-1.17%	-1.67%
Max Drawdown (3Y) Largest decline over 3 years	-5.98%	-1.17%	-4.81%
Max Drawdown (5Y) Largest decline over 5 years	-18.11%	-6.36%	-11.75%
Max Drawdown (10Y) Largest decline over 10 years	-18.72%	-6.51%	-12.21%
Current Drawdown Current decline from peak	-3.28%	-0.12%	-3.16%
Average Drawdown Average peak-to-trough decline	-4.41%	-1.04%	-3.37%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.05%	0.31%	+0.74%

Volatility

VTBIX vs. FSHBX - Volatility Comparison

Vanguard Total Bond Market II Index Fund Investor Shares (VTBIX) has a higher volatility of 1.01% compared to Fidelity Short-Term Bond Fund (FSHBX) at 0.50%. This indicates that VTBIX's price experiences larger fluctuations and is considered to be riskier than FSHBX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTBIX	FSHBX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.01%	0.50%	+0.51%
Volatility (6M) Calculated over the trailing 6-month period	2.93%	1.45%	+1.48%
Volatility (1Y) Calculated over the trailing 1-year period	3.78%	1.92%	+1.86%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.95%	2.22%	+3.73%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.92%	1.86%	+3.06%

VTBIX vs. FSHBX - Expense Ratio Comparison

VTBIX has a 0.09% expense ratio, which is lower than FSHBX's 0.45% expense ratio.

Dividends

VTBIX vs. FSHBX - Dividend Comparison

VTBIX's dividend yield for the trailing twelve months is around 4.02%, less than FSHBX's 4.15% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FSHBX Fidelity Short-Term Bond Fund	4.15%	4.26%	4.00%	3.00%	0.83%	1.04%	2.62%	2.13%	1.78%	1.27%	1.12%	0.88%
VTBIX Vanguard Total Bond Market II Index Fund Investor Shares	4.02%	3.88%	3.70%	2.53%	2.47%	1.75%	3.20%	2.72%	2.51%	2.43%	2.48%	2.64%

Frequently Asked Questions

Can I hold both VTBIX and FSHBX in my portfolio?

VTBIX and FSHBX have a correlation of 0.74, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VTBIX or FSHBX?

VTBIX has higher volatility (1.01%) compared to FSHBX (0.50%). In terms of maximum drawdown, VTBIX dropped -18.72% vs FSHBX's -8.80%.

Which has better risk-adjusted returns?

FSHBX currently has the higher Sharpe Ratio (1.89 vs 1.14), 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.