XTWO vs. VTG

Last updated Jul 15, 2026

XTWO (BondBloxx Bloomberg Two Year Target Duration US Treasury ETF) and VTG (Vanguard Total Treasury ETF) are both Government Bonds funds - XTWO tracks the Bloomberg US Treasury 2 Year Target Duration Index while VTG tracks the Bloomberg U.S. Treasury Total Return Unhedged USD Index. Both are passively managed. Over the past year, XTWO returned 3.10% vs 2.99% for VTG. Their correlation of 0.85 suggests significant overlap in exposure. XTWO charges 0.05%/yr vs 0.03%/yr for VTG.

Performance

XTWO vs. VTG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in BondBloxx Bloomberg Two Year Target Duration US Treasury ETF (XTWO) and Vanguard Total Treasury ETF (VTG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XTWO achieves a 0.63% return, which is significantly higher than VTG's -0.26% return.

XTWO

• 1D: 0.16%
• 1M: 0.14%
• 6M: 0.62%
• YTD: 0.63%
• 1Y: 3.10%
• 3Y*: 4.21%
• 5Y*: —
• 10Y*: —

VTG

• 1D: 0.17%
• 1M: -0.36%
• 6M: -0.37%
• YTD: -0.26%
• 1Y: 2.99%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

XTWO vs. VTG - Yearly Performance Comparison

	2026 (YTD)	2025
XTWO BondBloxx Bloomberg Two Year Target Duration US Treasury ETF	0.63%	2.54%
VTG Vanguard Total Treasury ETF	-0.26%	3.07%

Correlation

The correlation between XTWO and VTG is 0.85, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.85
Correlation (All Time) Calculated using the full available price history since Jul 9, 2025	0.85

The correlation between XTWO and VTG has been stable across timeframes, ranging from 0.85 to 0.85 - a consistent structural relationship.

Return for Risk

XTWO vs. VTG — Risk / Return Rank

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

XTWO

XTWO Risk / Return Rank: 83
XTWO Sharpe Ratio Rank: 79
XTWO Sortino Ratio Rank: 87
XTWO Omega Ratio Rank: 87
XTWO Calmar Ratio Rank: 81
XTWO Martin Ratio Rank: 78

VTG

VTG Risk / Return Rank: 27
VTG Sharpe Ratio Rank: 29
VTG Sortino Ratio Rank: 28
VTG Omega Ratio Rank: 26
VTG Calmar Ratio Rank: 26
VTG Martin Ratio Rank: 26

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.

XTWO vs. VTG - 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 Total Treasury ETF (VTG). 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.

	XTWO	VTG	Difference
Sharpe ratio: Return per unit of total volatility	2.00	0.85	+1.15
Sortino ratio: Return per unit of downside risk	3.17	1.28	+1.89
Omega ratio: Gain probability vs. loss probability	1.42	1.15	+0.27
Calmar ratio: Return relative to maximum drawdown	3.42	1.04	+2.38
Martin ratio: Return relative to average drawdown	11.54	2.70	+8.84

XTWO vs. VTG - Sharpe Ratio Comparison

The current XTWO Sharpe Ratio is 2.00, which is higher than the VTG Sharpe Ratio of 0.85. The chart below compares the historical Sharpe Ratios of XTWO and VTG, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

XTWO vs. VTG - Drawdown Comparison

The maximum XTWO drawdown since its inception was -1.73%, smaller than the maximum VTG drawdown of -2.89%. Use the drawdown chart below to compare losses from any high point for XTWO and VTG.

Drawdown Indicators

	XTWO	VTG	Difference
Max Drawdown Largest peak-to-trough decline	-1.73%	-2.89%	+1.16%
Max Drawdown (1Y) Largest decline over 1 year	-0.91%	-2.89%	+1.98%
Max Drawdown (3Y) Largest decline over 3 years	-1.18%	—	—
Current Drawdown Current decline from peak	-0.16%	-2.04%	+1.88%
Average Drawdown Average peak-to-trough decline	-0.40%	-0.83%	+0.43%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.27%	1.11%	-0.84%

Volatility

XTWO vs. VTG - Volatility Comparison

The current volatility for BondBloxx Bloomberg Two Year Target Duration US Treasury ETF (XTWO) is 0.86%, while Vanguard Total Treasury ETF (VTG) has a volatility of 1.03%. This indicates that XTWO experiences smaller price fluctuations and is considered to be less risky than VTG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XTWO	VTG	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.86%	1.03%	-0.17%
Volatility (6M) Calculated over the trailing 6-month period	1.27%	2.65%	-1.38%
Volatility (1Y) Calculated over the trailing 1-year period	1.56%	3.53%	-1.97%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.18%	3.53%	-1.35%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.18%	3.53%	-1.35%

XTWO vs. VTG - Expense Ratio Comparison

XTWO has a 0.05% expense ratio, which is higher than VTG'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. VTG - Dividend Comparison

XTWO's dividend yield for the trailing twelve months is around 4.02%, more than VTG's 3.55% yield.

Position	TTM	2025	2024	2023	2022
VTG Vanguard Total Treasury ETF	3.55%	1.65%	0.00%	0.00%	0.00%
XTWO BondBloxx Bloomberg Two Year Target Duration US Treasury ETF	4.02%	4.24%	4.54%	4.07%	1.13%

Frequently Asked Questions

Can I hold both XTWO and VTG in my portfolio?

XTWO and VTG have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XTWO or VTG?

VTG has higher volatility (1.03%) compared to XTWO (0.86%). In terms of maximum drawdown, XTWO dropped -1.73% vs VTG's -2.89%.

Which ETF is better, XTWO or VTG?

On 1-year performance, XTWO leads with 3.10% vs 2.99% for VTG. On fees, VTG is cheaper at 0.03% per year. On volatility, XTWO has been the lower-risk option at 0.86%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XTWO or VTG?

Over the 1-year period, XTWO has performed better with a 3.10% return vs 2.99%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XTWO or VTG?

VTG is cheaper with a 0.03% expense ratio, compared with 0.05% for XTWO.

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

XTWO has the higher dividend yield at 4.02%, compared with 3.55% for VTG.

What is the main difference between XTWO and VTG?

XTWO tracks Bloomberg US Treasury 2 Year Target Duration Index, while VTG tracks Bloomberg U.S. Treasury Total Return Unhedged USD Index. They also come from different issuers: BondBloxx and Vanguard. Their fees differ too: 0.05% for XTWO and 0.03% for VTG.

Which has better risk-adjusted returns?

XTWO currently has the higher Sharpe Ratio (2.00 vs 0.85), 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.