BND vs VGSH
Vanguard Total Bond Market ETF vs Vanguard Short Term Treasury ETF
Which is better, BND or VGSH?
Intermediate Term Bond against Short Term Government Bond.
BND led over 3Y, VGSH over 1Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | BND | VGSH |
|---|---|---|
| Expense Ratio | 0.03%Tie | 0.03%Tie |
| AUM | $163.3B | $34.8B |
| Dividend Yield | 4.04% | 3.82% |
| Holdings | 16,300 | 92 |
| YTD Return | -2.24% | +0.75%Best |
| 1Y Return | -1.53% | +1.75%Best |
| 3Y Return (annualized) | +4.28%Best | +4.05% |
| 5Y Return (annualized) | -0.41% | +1.92%Best |
| Volatility (annualized) | 4.5% | 1.4%Best |
| Max Drawdown | -19.6% | -6.7%Best |
| $10,000 over 5 years | $9,797 | $10,998Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Fixed Income |
| Style | Intermediate Term Bond | Short Term Government Bond |
| Inception | Apr 3, 2007 | Nov 19, 2009 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 23, 2009 to Oct 9, 2026 (16.9 years).
BND vs VGSH growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 16.9 years both funds cover.
BND vs VGSH Performance
Vanguard Total Bond Market ETF (BND) is an ETF from Vanguard (US) and Vanguard Short Term Treasury ETF (VGSH) is an ETF from Vanguard (US). Over the past year BND returned -1.53% while VGSH returned +1.75%. Year to date, BND is down 2.24% versus a gain of 0.75% for VGSH.
Over three years, BND compounded at +4.28% per year against +4.05% for VGSH; over five years the annualized figures are -0.41% and +1.92% respectively. Across the full 17-year window we track, VGSH has the edge at +0.70% annualized vs +0.32%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BND has been the more volatile fund, with annualized monthly volatility of 4.5% compared with 1.4% for VGSH. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -19.6% for BND and -6.7% for VGSH. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BND charges 0.03% per year while VGSH charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, BND currently yields 4.04% against 3.82% for VGSH.
Holdings Overlap
We hold position weights for 12,775 holdings in BND and 71 in VGSH, totalling 65.9% and 76.6% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 68 positions appear in both.
68 positions in common, counted across the 12,775 positions we hold weights for in BND and 71 in VGSH, against full books of 16,300 and 92.
Top Shared Holdings
| Stock | Weight in BND | Weight in VGSH | Difference |
|---|---|---|---|
| T 3.5 01/31/28Us Treasury N/B 3.375 01/31/2028 | 0.47% | 2.25% | 1.78% |
| T 4.625 04/30/29United States Treasury Note/Bond 2029-04-30 | 0.24% | 1.40% | 1.16% |
| T 4.5 05/31/29Treasury Note (Otr) 4.5% May 31, 2029 | 0.24% | 1.37% | 1.13% |
| CURVVanguard Market Liquidity Fund | 1.20% | 0.40% | 0.80% |
| T 4 07/31/29United States Treasury Note/Bond 4 07/31/2029 | 0.19% | 1.36% | 1.17% |
| T 4.25 06/30/29United States Treasuryu.S. Treasury Notes | 0.24% | 1.31% | 1.07% |
| T 4.125 03/31/29Treasury Note 4.125 3/31/2029 | 0.23% | 1.30% | 1.07% |
| T 4.25 02/28/29United States Treasury Note 2029-02-28 | 0.22% | 1.31% | 1.09% |
| T 1.125 02/29/28Us Treasury N/B 1.125 02/29/2028 | 0.26% | 1.23% | 0.97% |
| T 2.875 05/15/28Us Treas Nts 2.875% 05/15/28 | 0.22% | 1.25% | 1.03% |
You are not choosing between two funds in isolation.
Whichever of BND and VGSH you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, BND or VGSH?
BND has an expense ratio of 0.03% while VGSH charges 0.03%. At the precision these are quoted to, they cost the same.
Which performed better, BND or VGSH?
Over the past year BND returned -1.53% vs +1.75% for VGSH, so VGSH leads on 1-year performance. Over the longest common window we track (17 years), BND annualized +0.32% vs +0.70% for VGSH. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, BND or VGSH?
BND has been the more volatile fund at 4.5% annualized versus 1.4% for VGSH. Worst drawdown: BND -19.6% vs VGSH -6.7%.
Should I hold both BND and VGSH?
BND and VGSH have a monthly-return correlation of 0.74, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, BND or VGSH?
BND yields 4.04% while VGSH yields 3.82%, so BND currently pays the higher dividend yield.
Is VGSH better than BND?
BND led over 3Y, VGSH over 1Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.