XTWO vs. VGSH
XTWO (BondBloxx Bloomberg Two Year Target Duration US Treasury ETF) and VGSH (Vanguard Short-Term Treasury ETF) are both Government Bonds funds - XTWO tracks the Bloomberg US Treasury 2 Year Target Duration Index while VGSH tracks the Bloomberg U.S. Treasury 1-3 Year Index. Both are passively managed. Over the past 3 years, XTWO returned 4.12%/yr vs 4.15%/yr for VGSH. With a 0.96 correlation, they move nearly in lockstep. XTWO charges 0.05%/yr vs 0.03%/yr for VGSH.
Performance
XTWO vs. VGSH - Performance Comparison
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Returns By Period
In the year-to-date period, XTWO achieves a 0.41% return, which is significantly lower than VGSH's 0.48% return.
XTWO
- 1D
- -0.03%
- 1M
- 0.08%
- YTD
- 0.41%
- 6M
- 0.67%
- 1Y
- 3.42%
- 3Y*
- 4.12%
- 5Y*
- —
- 10Y*
- —
VGSH
- 1D
- -0.03%
- 1M
- 0.08%
- YTD
- 0.48%
- 6M
- 0.74%
- 1Y
- 3.43%
- 3Y*
- 4.15%
- 5Y*
- 1.81%
- 10Y*
- 1.74%
XTWO vs. VGSH - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
XTWO BondBloxx Bloomberg Two Year Target Duration US Treasury ETF | 0.41% | 5.17% | 3.92% | 4.27% | 0.17% |
VGSH Vanguard Short-Term Treasury ETF | 0.48% | 5.07% | 4.00% | 4.31% | 0.18% |
Correlation
The correlation between XTWO and VGSH is 0.95 - 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 | 0.95 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.95 |
Correlation (All Time) Calculated using the full available price history since Sep 16, 2022 | 0.96 |
The correlation between XTWO and VGSH has been stable across timeframes, ranging from 0.95 to 0.96 - a consistent structural relationship.
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Return for Risk
XTWO vs. VGSH — Risk / Return Rank
XTWO
VGSH
XTWO vs. VGSH - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for BondBloxx Bloomberg Two Year Target Duration US Treasury ETF (XTWO) 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.
| XTWO | VGSH | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.16 | ||
| Sortino ratioReturn per unit of downside risk | -0.27 | ||
| Omega ratioGain probability vs. loss probability | 1.52 | 1.57 | -0.05 |
| Calmar ratioReturn relative to maximum drawdown | 3.78 | 3.90 | -0.12 |
| Martin ratioReturn relative to average drawdown | 13.59 | 15.52 | -1.93 |
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
| XTWO | VGSH | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.52 | 2.68 | -0.16 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | — | 0.93 | — |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 1.11 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.74 | 1.01 | +0.72 |
Drawdowns
XTWO vs. VGSH - Drawdown Comparison
The maximum XTWO drawdown since its inception was -1.73%, smaller than the maximum VGSH drawdown of -5.70%. Use the drawdown chart below to compare losses from any high point for XTWO and VGSH.
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Drawdown Indicators
| XTWO | VGSH | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -1.73% | -5.70% | +3.97% |
Max Drawdown (1Y)Largest decline over 1 year | -0.91% | -0.88% | -0.03% |
Max Drawdown (3Y)Largest decline over 3 years | -1.18% | -0.97% | -0.21% |
Max Drawdown (5Y)Largest decline over 5 years | — | -5.66% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -5.70% | — |
Current DrawdownCurrent decline from peak | -0.38% | -0.29% | -0.09% |
Average DrawdownAverage peak-to-trough decline | -0.40% | -0.60% | +0.20% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.25% | 0.22% | +0.03% |
Volatility
XTWO vs. VGSH - Volatility Comparison
BondBloxx Bloomberg Two Year Target Duration US Treasury ETF (XTWO) and Vanguard Short-Term Treasury ETF (VGSH) have volatilities of 0.36% and 0.35%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XTWO | VGSH | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.36% | 0.35% | +0.01% |
Volatility (6M)Calculated over the trailing 6-month period | 0.95% | 0.88% | +0.07% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.37% | 1.29% | +0.08% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.16% | 1.97% | +0.19% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.16% | 1.57% | +0.59% |
XTWO vs. VGSH - Expense Ratio Comparison
XTWO 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
XTWO vs. VGSH - Dividend Comparison
XTWO's dividend yield for the trailing twelve months is around 4.05%, 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% |
XTWO BondBloxx Bloomberg Two Year Target Duration US Treasury ETF | 4.05% | 4.24% | 4.54% | 4.07% | 1.13% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
With a correlation of 0.95, XTWO and VGSH 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.
XTWO has higher volatility (0.36%) compared to VGSH (0.35%). In terms of maximum drawdown, XTWO dropped -1.73% vs VGSH's -5.70%.
On 3-year performance, VGSH leads with 4.15% vs 4.12% for XTWO. On fees, VGSH 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 3-year period, VGSH has performed better with a 4.15% return vs 4.12%. 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 XTWO.
XTWO has the higher dividend yield at 4.05%, compared with 3.87% for VGSH.
XTWO tracks Bloomberg US Treasury 2 Year Target Duration Index, while VGSH tracks Bloomberg U.S. Treasury 1-3 Year Index. They also come from different issuers: BondBloxx and Vanguard. Their fees differ too: 0.05% for XTWO and 0.03% for VGSH.
VGSH currently has the higher Sharpe Ratio (2.68 vs 2.52), 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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