VTES vs. SGOV

Last updated Jun 3, 2026

VTES (Vanguard Short-Term Tax-Exempt Bond ETF Shares) and SGOV (iShares 0-3 Month Treasury Bond ETF) are both exchange-traded funds - VTES is a Municipal Bonds fund tracking the S&P 0-7 Yr National AMT-Free Municipal Bond Index - Benchmark TR Gross, while SGOV is a Ultrashort Bond fund tracking the ICE 0-3 Month US Treasury Securities Index. Both are passively managed. Over the past 3 years, VTES returned 3.22%/yr vs 4.72%/yr for SGOV. At a 0.06 correlation, their price movements are largely independent. VTES charges 0.07%/yr vs 0.09%/yr for SGOV.

Performance

VTES vs. SGOV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Short-Term Tax-Exempt Bond ETF Shares (VTES) and iShares 0-3 Month Treasury Bond ETF (SGOV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTES achieves a 0.65% return, which is significantly lower than SGOV's 1.50% return.

VTES

• 1D: 0.06%
• 1M: 0.28%
• YTD: 0.65%
• 6M: 1.08%
• 1Y: 3.72%
• 3Y*: 3.22%
• 5Y*: —
• 10Y*: —

SGOV

• 1D: 0.00%
• 1M: 0.29%
• YTD: 1.50%
• 6M: 1.80%
• 1Y: 3.95%
• 3Y*: 4.72%
• 5Y*: 3.53%
• 10Y*: —

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

VTES vs. SGOV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
VTES Vanguard Short-Term Tax-Exempt Bond ETF Shares	0.65%	4.19%	1.85%	3.32%
SGOV iShares 0-3 Month Treasury Bond ETF	1.50%	4.24%	5.27%	4.27%

Correlation

The correlation between VTES and SGOV is 0.03, 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	0.03
Correlation (3Y) Calculated over the trailing 3-year period	0.07
Correlation (All Time) Calculated using the full available price history since Mar 10, 2023	0.06

Return for Risk

VTES vs. SGOV — Risk / Return Rank

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

VTES

VTES Risk / Return Rank: 74
VTES Sharpe Ratio Rank: 88
VTES Sortino Ratio Rank: 91
VTES Omega Ratio Rank: 95
VTES Calmar Ratio Rank: 51
VTES Martin Ratio Rank: 46

SGOV

SGOV Risk / Return Rank: 100
SGOV Sharpe Ratio Rank: 100
SGOV Sortino Ratio Rank: 100
SGOV Omega Ratio Rank: 100
SGOV Calmar Ratio Rank: 100
SGOV Martin Ratio Rank: 100

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.

VTES vs. SGOV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Tax-Exempt Bond ETF Shares (VTES) and iShares 0-3 Month Treasury Bond ETF (SGOV). 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.

	VTES	SGOV	Difference
Sharpe ratio Return per unit of total volatility	3.01	20.28	-17.27
Sortino ratio Return per unit of downside risk	4.36	275.69	-271.33
Omega ratio Gain probability vs. loss probability	1.71	195.55	-193.84
Calmar ratio Return relative to maximum drawdown	2.54	399.50	-396.96
Martin ratio Return relative to average drawdown	7.58	4,485.48	-4,477.90
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VTES vs. SGOV - Sharpe Ratio Comparison

The current VTES Sharpe Ratio is 3.01, which is lower than the SGOV Sharpe Ratio of 20.28. The chart below compares the historical Sharpe Ratios of VTES and SGOV, 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

	VTES	SGOV	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.01	20.28	-17.27
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	14.72	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.81	12.48	-10.67

Drawdowns

VTES vs. SGOV - Drawdown Comparison

The maximum VTES drawdown since its inception was -2.42%, which is greater than SGOV's maximum drawdown of -0.03%. Use the drawdown chart below to compare losses from any high point for VTES and SGOV.

Drawdown Indicators

	VTES	SGOV	Difference
Max Drawdown Largest peak-to-trough decline	-2.42%	-0.03%	-2.39%
Max Drawdown (1Y) Largest decline over 1 year	-1.47%	-0.01%	-1.46%
Max Drawdown (3Y) Largest decline over 3 years	-1.80%	-0.01%	-1.79%
Max Drawdown (5Y) Largest decline over 5 years	—	-0.03%	—
Current Drawdown Current decline from peak	-0.63%	0.00%	-0.63%
Average Drawdown Average peak-to-trough decline	-0.50%	-0.00%	-0.50%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.49%	0.00%	+0.49%

Volatility

VTES vs. SGOV - Volatility Comparison

Vanguard Short-Term Tax-Exempt Bond ETF Shares (VTES) has a higher volatility of 0.35% compared to iShares 0-3 Month Treasury Bond ETF (SGOV) at 0.05%. This indicates that VTES's price experiences larger fluctuations and is considered to be riskier than SGOV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTES	SGOV	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.35%	0.05%	+0.30%
Volatility (6M) Calculated over the trailing 6-month period	0.97%	0.13%	+0.84%
Volatility (1Y) Calculated over the trailing 1-year period	1.24%	0.20%	+1.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.72%	0.24%	+1.48%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.72%	0.24%	+1.48%

VTES vs. SGOV - Expense Ratio Comparison

VTES has a 0.07% expense ratio, which is lower than SGOV's 0.09% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VTES vs. SGOV - Dividend Comparison

VTES's dividend yield for the trailing twelve months is around 2.75%, less than SGOV's 3.86% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
SGOV iShares 0-3 Month Treasury Bond ETF	3.86%	4.10%	5.10%	4.87%	1.45%	0.03%	0.05%
VTES Vanguard Short-Term Tax-Exempt Bond ETF Shares	2.75%	2.77%	2.99%	2.03%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VTES and SGOV in my portfolio?

VTES and SGOV have a correlation of 0.03, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VTES or SGOV?

VTES has higher volatility (0.35%) compared to SGOV (0.05%). In terms of maximum drawdown, VTES dropped -2.42% vs SGOV's -0.03%.

Which ETF is better, VTES or SGOV?

On 3-year performance, SGOV leads with 4.72% vs 3.22% for VTES. On fees, VTES is cheaper at 0.07% per year. On volatility, SGOV has been the lower-risk option at 0.05%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VTES or SGOV?

Over the 3-year period, SGOV has performed better with a 4.72% return vs 3.22%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VTES or SGOV?

VTES is cheaper with a 0.07% expense ratio, compared with 0.09% for SGOV.

Which ETF pays a higher dividend yield, VTES or SGOV?

SGOV has the higher dividend yield at 3.86%, compared with 2.75% for VTES.

What is the main difference between VTES and SGOV?

VTES is categorized as Municipal Bonds, while SGOV is Ultrashort Bond. VTES tracks S&P 0-7 Yr National AMT-Free Municipal Bond Index - Benchmark TR Gross, while SGOV tracks ICE 0-3 Month US Treasury Securities Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.07% for VTES and 0.09% for SGOV.

Which has better risk-adjusted returns?

SGOV currently has the higher Sharpe Ratio (20.28 vs 3.01), 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.