VUG vs. VGSH
VUG (Vanguard Growth ETF) and VGSH (Vanguard Short-Term Treasury ETF) are both exchange-traded funds - VUG is a Large Cap Growth Equities fund tracking the CRSP US Large Cap Growth Index, while VGSH is a Government Bonds fund tracking the Bloomberg U.S. Treasury 1-3 Year Index. Both are passively managed. Over the past 10 years, VUG returned 17.90%/yr vs 1.73%/yr for VGSH. At a correlation of -0.11, they often move in opposite directions. Both charge a 0.03% expense ratio.
Performance
VUG vs. VGSH - Performance Comparison
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Returns By Period
In the year-to-date period, VUG achieves a 4.99% return, which is significantly higher than VGSH's 0.57% return. Over the past 10 years, VUG has outperformed VGSH with an annualized return of 17.90%, while VGSH has yielded a comparatively lower 1.73% annualized return.
VUG
- 1D
- 0.18%
- 1M
- -3.64%
- YTD
- 4.99%
- 6M
- 5.66%
- 1Y
- 22.83%
- 3Y*
- 23.38%
- 5Y*
- 13.78%
- 10Y*
- 17.90%
VGSH
- 1D
- -0.03%
- 1M
- 0.16%
- YTD
- 0.57%
- 6M
- 0.83%
- 1Y
- 3.36%
- 3Y*
- 4.25%
- 5Y*
- 1.83%
- 10Y*
- 1.73%
VUG vs. VGSH - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VUG Vanguard Growth ETF | 4.99% | 19.40% | 32.69% | 46.83% | -33.16% | 27.35% | 40.25% | 37.03% | -3.32% | 27.72% |
VGSH Vanguard Short-Term Treasury ETF | 0.57% | 5.07% | 4.00% | 4.31% | -3.86% | -0.60% | 3.04% | 3.52% | 1.55% | 0.04% |
Correlation
The correlation between VUG and VGSH is 0.08, 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 | 0.08 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.03 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.05 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.06 |
Correlation (All Time) Calculated using the full available price history since Nov 23, 2009 | -0.11 |
The correlation between VUG and VGSH shifts across timeframes, from -0.11 (all time) to 0.08 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
VUG vs. VGSH — Risk / Return Rank
VUG
VGSH
VUG vs. VGSH - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Growth ETF (VUG) 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.
| VUG | VGSH | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.32 | ||
| Sortino ratioReturn per unit of downside risk | -2.52 | ||
| Omega ratioGain probability vs. loss probability | 1.23 | 1.55 | -0.32 |
| Calmar ratioReturn relative to maximum drawdown | 1.29 | 3.76 | -2.47 |
| Martin ratioReturn relative to average drawdown | 4.43 | 14.67 | -10.24 |
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Drawdowns
VUG vs. VGSH - Drawdown Comparison
The maximum VUG drawdown since its inception was -50.68%, which is greater than VGSH's maximum drawdown of -5.70%. Use the drawdown chart below to compare losses from any high point for VUG and VGSH.
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Drawdown Indicators
| VUG | VGSH | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -50.68% | -5.70% | -44.98% |
Max Drawdown (1Y)Largest decline over 1 year | -16.53% | -0.88% | -15.65% |
Max Drawdown (3Y)Largest decline over 3 years | -22.85% | -0.97% | -21.88% |
Max Drawdown (5Y)Largest decline over 5 years | -35.61% | -5.66% | -29.95% |
Max Drawdown (10Y)Largest decline over 10 years | -35.61% | -5.70% | -29.91% |
Current DrawdownCurrent decline from peak | -5.56% | -0.21% | -5.35% |
Average DrawdownAverage peak-to-trough decline | -7.09% | -0.60% | -6.49% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.79% | 0.23% | +4.56% |
Volatility
VUG vs. VGSH - Volatility Comparison
Vanguard Growth ETF (VUG) has a higher volatility of 5.73% compared to Vanguard Short-Term Treasury ETF (VGSH) at 0.37%. This indicates that VUG's price experiences larger fluctuations and is considered to be riskier than VGSH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VUG | VGSH | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.73% | 0.37% | +5.36% |
Volatility (6M)Calculated over the trailing 6-month period | 13.00% | 0.90% | +12.10% |
Volatility (1Y)Calculated over the trailing 1-year period | 16.46% | 1.28% | +15.18% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 22.30% | 1.97% | +20.33% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 21.48% | 1.58% | +19.90% |
VUG vs. VGSH - Expense Ratio Comparison
Both VUG 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
VUG vs. VGSH - Dividend Comparison
VUG's dividend yield for the trailing twelve months is around 0.39%, 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% |
VUG Vanguard Growth ETF | 0.39% | 0.41% | 0.47% | 0.58% | 0.70% | 0.48% | 0.66% | 0.95% | 1.32% | 1.14% | 1.39% | 1.30% |
Frequently Asked Questions
VUG and VGSH have a correlation of 0.08, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VUG has higher volatility (5.73%) compared to VGSH (0.37%). In terms of maximum drawdown, VUG dropped -50.68% vs VGSH's -5.70%.
On 10-year performance, VUG leads with 17.90% vs 1.73% for VGSH. Both ETFs have the same 0.03% expense ratio. On volatility, VGSH has been the lower-risk option at 0.37%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VUG has performed better with a 17.90% return vs 1.73%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VUG and VGSH have the same expense ratio: 0.03% per year.
VGSH has the higher dividend yield at 3.87%, compared with 0.39% for VUG.
VUG is categorized as Large Cap Growth Equities, while VGSH is Government Bonds. VUG tracks CRSP US Large Cap Growth Index, while VGSH tracks Bloomberg U.S. Treasury 1-3 Year Index.
VGSH currently has the higher Sharpe Ratio (2.61 vs 1.29), 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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