VXUS vs. VGSH
VXUS (Vanguard Total International Stock ETF) and VGSH (Vanguard Short-Term Treasury ETF) are both exchange-traded funds - VXUS is a Global Equities fund tracking the FTSE Global All Cap ex US 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, VXUS returned 10.22%/yr vs 1.73%/yr for VGSH. At a correlation of -0.05, they often move in opposite directions. VXUS charges 0.05%/yr vs 0.03%/yr for VGSH.
Performance
VXUS vs. VGSH - Performance Comparison
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Returns By Period
In the year-to-date period, VXUS achieves a 13.69% return, which is significantly higher than VGSH's 0.57% return. Over the past 10 years, VXUS has outperformed VGSH with an annualized return of 10.22%, while VGSH has yielded a comparatively lower 1.73% annualized return.
VXUS
- 1D
- 0.40%
- 1M
- 0.78%
- YTD
- 13.69%
- 6M
- 15.52%
- 1Y
- 30.12%
- 3Y*
- 18.37%
- 5Y*
- 8.32%
- 10Y*
- 10.22%
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%
VXUS vs. VGSH - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VXUS Vanguard Total International Stock ETF | 13.69% | 32.35% | 5.08% | 15.86% | -16.08% | 8.98% | 10.66% | 21.75% | -14.43% | 27.46% |
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 VXUS and VGSH is 0.28, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.28 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.20 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.15 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.01 |
Correlation (All Time) Calculated using the full available price history since Jan 28, 2011 | -0.05 |
The correlation between VXUS and VGSH shifts across timeframes, from -0.05 (all time) to 0.28 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
VXUS vs. VGSH — Risk / Return Rank
VXUS
VGSH
VXUS vs. VGSH - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Total International Stock ETF (VXUS) 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.
| VXUS | VGSH | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.84 | ||
| Sortino ratioReturn per unit of downside risk | -1.86 | ||
| Omega ratioGain probability vs. loss probability | 1.33 | 1.55 | -0.23 |
| Calmar ratioReturn relative to maximum drawdown | 2.53 | 3.76 | -1.23 |
| Martin ratioReturn relative to average drawdown | 9.72 | 14.67 | -4.95 |
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Drawdowns
VXUS vs. VGSH - Drawdown Comparison
The maximum VXUS drawdown since its inception was -35.97%, which is greater than VGSH's maximum drawdown of -5.70%. Use the drawdown chart below to compare losses from any high point for VXUS and VGSH.
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Drawdown Indicators
| VXUS | VGSH | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -35.97% | -5.70% | -30.27% |
Max Drawdown (1Y)Largest decline over 1 year | -11.27% | -0.88% | -10.39% |
Max Drawdown (3Y)Largest decline over 3 years | -13.58% | -0.97% | -12.61% |
Max Drawdown (5Y)Largest decline over 5 years | -29.44% | -5.66% | -23.78% |
Max Drawdown (10Y)Largest decline over 10 years | -35.97% | -5.70% | -30.27% |
Current DrawdownCurrent decline from peak | -1.47% | -0.21% | -1.26% |
Average DrawdownAverage peak-to-trough decline | -8.21% | -0.60% | -7.61% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.93% | 0.23% | +2.70% |
Volatility
VXUS vs. VGSH - Volatility Comparison
Vanguard Total International Stock ETF (VXUS) has a higher volatility of 6.71% compared to Vanguard Short-Term Treasury ETF (VGSH) at 0.37%. This indicates that VXUS'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
| VXUS | VGSH | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.71% | 0.37% | +6.34% |
Volatility (6M)Calculated over the trailing 6-month period | 14.02% | 0.90% | +13.12% |
Volatility (1Y)Calculated over the trailing 1-year period | 16.09% | 1.28% | +14.81% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 16.21% | 1.97% | +14.24% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 17.20% | 1.58% | +15.62% |
VXUS vs. VGSH - Expense Ratio Comparison
VXUS has a 0.05% 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
VXUS vs. VGSH - Dividend Comparison
VXUS's dividend yield for the trailing twelve months is around 2.67%, 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% |
VXUS Vanguard Total International Stock ETF | 2.67% | 3.18% | 3.37% | 3.24% | 3.09% | 3.10% | 2.14% | 3.06% | 3.18% | 2.73% | 2.93% | 2.83% |
Frequently Asked Questions
VXUS and VGSH have a correlation of 0.28, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VXUS has higher volatility (6.71%) compared to VGSH (0.37%). In terms of maximum drawdown, VXUS dropped -35.97% vs VGSH's -5.70%.
On 10-year performance, VXUS leads with 10.22% vs 1.73% for VGSH. On fees, VGSH is cheaper at 0.03% per year. 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, VXUS has performed better with a 10.22% return vs 1.73%. 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 0.05% for VXUS.
VGSH has the higher dividend yield at 3.87%, compared with 2.67% for VXUS.
VXUS is categorized as Global Equities, while VGSH is Government Bonds. VXUS tracks FTSE Global All Cap ex US Index, while VGSH tracks Bloomberg U.S. Treasury 1-3 Year Index. Their fees differ too: 0.05% for VXUS and 0.03% for VGSH.
VGSH currently has the higher Sharpe Ratio (2.61 vs 1.77), 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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