VTG vs. GOVT
VTG (Vanguard Total Treasury ETF) and GOVT (iShares U.S. Treasury Bond ETF) are both Government Bonds funds - VTG tracks the Bloomberg U.S. Treasury Total Return Unhedged USD Index while GOVT tracks the ICE U.S. Treasury Core Bond Index. Both are passively managed. Over the past year, VTG returned 2.81% vs 2.74% for GOVT. With a 0.98 correlation, they move nearly in lockstep. VTG charges 0.03%/yr vs 0.05%/yr for GOVT.
Performance
VTG vs. GOVT - Performance Comparison
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Returns By Period
As of year-to-date, both investments have demonstrated similar returns, with VTG at -0.43% and GOVT at -0.43%.
VTG
- 1D
- -0.28%
- 1M
- -0.53%
- 6M
- -0.49%
- YTD
- -0.43%
- 1Y
- 2.81%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
GOVT
- 1D
- -0.29%
- 1M
- -0.54%
- 6M
- -0.47%
- YTD
- -0.43%
- 1Y
- 2.74%
- 3Y*
- 2.84%
- 5Y*
- -0.74%
- 10Y*
- 0.73%
VTG vs. GOVT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | |
|---|---|---|
VTG Vanguard Total Treasury ETF | -0.43% | 3.07% |
GOVT iShares U.S. Treasury Bond ETF | -0.43% | 3.21% |
Correlation
The correlation between VTG and GOVT is 0.98 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.98 |
Correlation (All Time) Calculated using the full available price history since Jul 9, 2025 | 0.98 |
The correlation between VTG and GOVT has been stable across timeframes, ranging from 0.98 to 0.98 - a consistent structural relationship.
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Return for Risk
VTG vs. GOVT — Risk / Return Rank
VTG
GOVT
VTG vs. GOVT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Treasury ETF (VTG) and iShares U.S. Treasury Bond ETF (GOVT). 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.
| VTG | GOVT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.03 | ||
| Sortino ratioReturn per unit of downside risk | +0.04 | ||
| Omega ratioGain probability vs. loss probability | 1.14 | 1.13 | +0.01 |
| Calmar ratioReturn relative to maximum drawdown | 0.98 | 0.97 | +0.01 |
| Martin ratioReturn relative to average drawdown | 2.56 | 2.53 | +0.03 |
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Drawdowns
VTG vs. GOVT - Drawdown Comparison
The maximum VTG drawdown since its inception was -2.89%, smaller than the maximum GOVT drawdown of -19.07%. Use the drawdown chart below to compare losses from any high point for VTG and GOVT.
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Drawdown Indicators
| VTG | GOVT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -2.89% | -19.07% | +16.18% |
Max Drawdown (1Y)Largest decline over 1 year | -2.89% | -2.85% | -0.04% |
Max Drawdown (3Y)Largest decline over 3 years | — | -5.43% | — |
Max Drawdown (5Y)Largest decline over 5 years | — | -16.60% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -19.07% | — |
Current DrawdownCurrent decline from peak | -2.21% | -7.47% | +5.26% |
Average DrawdownAverage peak-to-trough decline | -0.83% | -5.26% | +4.43% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.10% | 1.09% | +0.01% |
Volatility
VTG vs. GOVT - Volatility Comparison
The current volatility for Vanguard Total Treasury ETF (VTG) is 1.13%, while iShares U.S. Treasury Bond ETF (GOVT) has a volatility of 1.20%. This indicates that VTG experiences smaller price fluctuations and is considered to be less risky than GOVT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VTG | GOVT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.13% | 1.20% | -0.07% |
Volatility (6M)Calculated over the trailing 6-month period | 2.64% | 2.70% | -0.06% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.53% | 3.58% | -0.05% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.53% | 6.04% | -2.51% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.53% | 5.22% | -1.69% |
VTG vs. GOVT - Expense Ratio Comparison
VTG has a 0.03% expense ratio, which is lower than GOVT's 0.05% 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
VTG vs. GOVT - Dividend Comparison
VTG's dividend yield for the trailing twelve months is around 3.55%, less than GOVT's 3.62% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
GOVT iShares U.S. Treasury Bond ETF | 3.62% | 3.49% | 3.14% | 2.65% | 1.77% | 0.96% | 2.17% | 1.98% | 1.97% | 1.57% | 1.40% | 1.25% |
VTG Vanguard Total Treasury ETF | 3.55% | 1.65% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
With a correlation of 0.98, VTG and GOVT move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
GOVT has higher volatility (1.20%) compared to VTG (1.13%). In terms of maximum drawdown, VTG dropped -2.89% vs GOVT's -19.07%.
On 1-year performance, VTG leads with 2.81% vs 2.74% for GOVT. On fees, VTG 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.
Over the 1-year period, VTG has performed better with a 2.81% return vs 2.74%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VTG is cheaper with a 0.03% expense ratio, compared with 0.05% for GOVT.
GOVT has the higher dividend yield at 3.62%, compared with 3.55% for VTG.
VTG tracks Bloomberg U.S. Treasury Total Return Unhedged USD Index, while GOVT tracks ICE U.S. Treasury Core Bond Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.03% for VTG and 0.05% for GOVT.
VTG currently has the higher Sharpe Ratio (0.80 vs 0.77), 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.
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