VTG vs. VGSH

Last updated Jun 25, 2026

VTG (Vanguard Total Treasury ETF) and VGSH (Vanguard Short-Term Treasury ETF) are both exchange-traded funds - VTG is a Intermediate Core Bond fund tracking the Bloomberg U.S. Treasury Total Return Unhedged USD Index, while VGSH is a Government Bonds fund tracking the Bloomberg U.S. Treasury 1-3 Year Index. Both are passively managed. Their correlation of 0.83 suggests significant overlap in exposure. Both charge a 0.03% expense ratio.

Performance

VTG vs. VGSH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Total Treasury ETF (VTG) and Vanguard Short-Term Treasury ETF (VGSH). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with VTG having a 0.59% return and VGSH slightly higher at 0.60%.

VTG

• 1D: 0.48%
• 1M: 1.13%
• YTD: 0.59%
• 6M: 0.52%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

VGSH

• 1D: 0.14%
• 1M: 0.25%
• YTD: 0.60%
• 6M: 0.72%
• 1Y: 3.03%
• 3Y*: 4.25%
• 5Y*: 1.88%
• 10Y*: 1.71%

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

VTG vs. VGSH - Yearly Performance Comparison

	2026 (YTD)	2025
VTG Vanguard Total Treasury ETF	0.59%	3.07%
VGSH Vanguard Short-Term Treasury ETF	0.60%	2.49%

Correlation

The correlation between VTG and VGSH is 0.83, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jul 9, 2025	0.83

Return for Risk

VTG vs. VGSH — Risk / Return Rank

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

VTG

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

VGSH

VGSH Risk / Return Rank: 82
VGSH Sharpe Ratio Rank: 81
VGSH Sortino Ratio Rank: 89
VGSH Omega Ratio Rank: 87
VGSH Calmar Ratio Rank: 74
VGSH Martin Ratio Rank: 76

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.

VTG vs. VGSH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Treasury ETF (VTG) and Vanguard Short-Term Treasury ETF (VGSH). 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	VGSH	Difference
Sharpe ratio: Return per unit of total volatility	—	2.32	—
Sortino ratio: Return per unit of downside risk	—	3.67	—
Omega ratio: Gain probability vs. loss probability	—	1.48	—
Calmar ratio: Return relative to maximum drawdown	—	3.44	—
Martin ratio: Return relative to average drawdown	—	13.16	—

Drawdowns

VTG vs. VGSH - Drawdown Comparison

The maximum VTG drawdown since its inception was -2.89%, smaller than the maximum VGSH drawdown of -5.70%. Use the drawdown chart below to compare losses from any high point for VTG and VGSH.

Drawdown Indicators

	VTG	VGSH	Difference
Max Drawdown Largest peak-to-trough decline	-2.89%	-5.70%	+2.81%
Max Drawdown (1Y) Largest decline over 1 year	—	-0.88%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-0.97%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-5.66%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-5.70%	—
Current Drawdown Current decline from peak	-1.21%	-0.17%	-1.04%
Average Drawdown Average peak-to-trough decline	-0.79%	-0.60%	-0.19%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.23%	—

Volatility

Volatility by Period

	VTG	VGSH	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	0.47%	—
Volatility (6M) Calculated over the trailing 6-month period	—	0.96%	—
Volatility (1Y) Calculated over the trailing 1-year period	3.54%	1.32%	+2.22%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.54%	1.98%	+1.56%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.54%	1.58%	+1.96%

VTG vs. VGSH - Expense Ratio Comparison

Both VTG and VGSH have an expense ratio of 0.03%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VTG vs. VGSH - Dividend Comparison

VTG's dividend yield for the trailing twelve months is around 3.18%, less than VGSH's 3.87% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VGSH Vanguard Short-Term Treasury ETF	3.87%	4.00%	4.18%	3.31%	1.15%	0.66%	1.74%	2.28%	1.79%	1.10%	0.84%	0.69%
VTG Vanguard Total Treasury ETF	3.18%	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

Can I hold both VTG and VGSH in my portfolio?

VTG and VGSH have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VTG or VGSH?

Both ETFs have the same 0.03% expense ratio. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VTG or VGSH?

VTG and VGSH have the same expense ratio: 0.03% per year.

Which ETF pays a higher dividend yield, VTG or VGSH?

VGSH has the higher dividend yield at 3.87%, compared with 3.18% for VTG.

What is the main difference between VTG and VGSH?

VTG is categorized as Intermediate Core Bond, while VGSH is Government Bonds. VTG tracks Bloomberg U.S. Treasury Total Return Unhedged USD Index, while VGSH tracks Bloomberg U.S. Treasury 1-3 Year Index.