VUSB vs. VGSH
VUSB (Vanguard Ultra-Short Bond ETF) and VGSH (Vanguard Short-Term Treasury ETF) are both exchange-traded funds - VUSB is a Ultrashort Bond fund actively managed by Vanguard, while VGSH is a Government Bonds fund tracking the Bloomberg U.S. Treasury 1-3 Year Index. VUSB is actively managed, while VGSH is passively managed. Over the past 5 years, VUSB returned 3.44%/yr vs 1.82%/yr for VGSH. A 0.72 correlation means they provide meaningful diversification when combined. VUSB charges 0.10%/yr vs 0.03%/yr for VGSH.
Performance
VUSB vs. VGSH - Performance Comparison
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Returns By Period
In the year-to-date period, VUSB achieves a 1.42% return, which is significantly higher than VGSH's 0.54% return.
VUSB
- 1D
- 0.02%
- 1M
- 0.34%
- YTD
- 1.42%
- 6M
- 1.80%
- 1Y
- 4.52%
- 3Y*
- 5.36%
- 5Y*
- 3.44%
- 10Y*
- —
VGSH
- 1D
- 0.05%
- 1M
- 0.09%
- YTD
- 0.54%
- 6M
- 0.88%
- 1Y
- 3.31%
- 3Y*
- 4.15%
- 5Y*
- 1.82%
- 10Y*
- 1.74%
VUSB vs. VGSH - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
VUSB Vanguard Ultra-Short Bond ETF | 1.42% | 5.20% | 5.68% | 5.52% | -0.36% | 0.00% |
VGSH Vanguard Short-Term Treasury ETF | 0.54% | 5.07% | 4.00% | 4.31% | -3.86% | -0.56% |
Correlation
The correlation between VUSB and VGSH is 0.72, 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 | 0.72 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.78 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.73 |
Correlation (All Time) Calculated using the full available price history since Apr 8, 2021 | 0.72 |
The correlation between VUSB and VGSH has been stable across timeframes, ranging from 0.72 to 0.78 - a consistent structural relationship.
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Return for Risk
VUSB vs. VGSH — Risk / Return Rank
VUSB
VGSH
VUSB vs. VGSH - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Ultra-Short Bond ETF (VUSB) 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.
| VUSB | VGSH | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +4.44 | ||
| Sortino ratioReturn per unit of downside risk | +8.72 | ||
| Omega ratioGain probability vs. loss probability | 3.40 | 1.55 | +1.86 |
| Calmar ratioReturn relative to maximum drawdown | 12.26 | 3.76 | +8.50 |
| Martin ratioReturn relative to average drawdown | 71.22 | 15.00 | +56.23 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VUSB | VGSH | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 7.04 | 2.60 | +4.44 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 4.15 | 0.93 | +3.22 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 1.11 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 4.10 | 1.02 | +3.08 |
Drawdowns
VUSB vs. VGSH - Drawdown Comparison
The maximum VUSB drawdown since its inception was -1.79%, smaller than the maximum VGSH drawdown of -5.70%. Use the drawdown chart below to compare losses from any high point for VUSB and VGSH.
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Drawdown Indicators
| VUSB | VGSH | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -1.79% | -5.70% | +3.91% |
Max Drawdown (1Y)Largest decline over 1 year | -0.37% | -0.88% | +0.51% |
Max Drawdown (3Y)Largest decline over 3 years | -0.46% | -0.97% | +0.51% |
Max Drawdown (5Y)Largest decline over 5 years | -1.79% | -5.66% | +3.87% |
Max Drawdown (10Y)Largest decline over 10 years | — | -5.70% | — |
Current DrawdownCurrent decline from peak | 0.00% | -0.24% | +0.24% |
Average DrawdownAverage peak-to-trough decline | -0.27% | -0.60% | +0.33% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.06% | 0.22% | -0.16% |
Volatility
VUSB vs. VGSH - Volatility Comparison
The current volatility for Vanguard Ultra-Short Bond ETF (VUSB) is 0.17%, while Vanguard Short-Term Treasury ETF (VGSH) has a volatility of 0.35%. This indicates that VUSB experiences smaller price fluctuations and is considered to be less risky 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
| VUSB | VGSH | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.17% | 0.35% | -0.18% |
Volatility (6M)Calculated over the trailing 6-month period | 0.52% | 0.88% | -0.36% |
Volatility (1Y)Calculated over the trailing 1-year period | 0.65% | 1.29% | -0.64% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 0.83% | 1.97% | -1.14% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 0.82% | 1.57% | -0.75% |
VUSB vs. VGSH - Expense Ratio Comparison
VUSB has a 0.10% expense ratio, which is higher than VGSH's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
VUSB vs. VGSH - Dividend Comparison
VUSB's dividend yield for the trailing twelve months is around 4.39%, more 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% |
VUSB Vanguard Ultra-Short Bond ETF | 4.39% | 4.63% | 5.16% | 4.45% | 1.56% | 0.26% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
VUSB and VGSH have a correlation of 0.72, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VGSH has higher volatility (0.35%) compared to VUSB (0.17%). In terms of maximum drawdown, VUSB dropped -1.79% vs VGSH's -5.70%.
On 5-year performance, VUSB leads with 3.44% vs 1.82% for VGSH. On fees, VGSH is cheaper at 0.03% per year. On volatility, VUSB has been the lower-risk option at 0.17%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, VUSB has performed better with a 3.44% return vs 1.82%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VGSH is cheaper with a 0.03% expense ratio, compared with 0.10% for VUSB.
VUSB has the higher dividend yield at 4.39%, compared with 3.87% for VGSH.
VUSB is categorized as Ultrashort Bond, while VGSH is Government Bonds. Their fees differ too: 0.10% for VUSB and 0.03% for VGSH.
VUSB currently has the higher Sharpe Ratio (7.04 vs 2.60), 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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