BND vs VGSH
Vanguard Total Bond Market ETF vs Vanguard Short Term Treasury ETF
Quick Verdict
VGSH delivered stronger 1-year returns. BND offers more diversification with 17,437 holdings.
Side-by-Side Comparison
| Metric | BND | VGSH | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $160.9B | $34.7B | |
| Dividend Yield | 4.02% | 3.85% | |
| Holdings | 17,437 | 94 | |
| YTD Return | -0.04% | +0.96% | |
| 1Y Return | +1.81% | +2.51% | |
| 3Y Return (annualized) | +4.14% | +4.24% | |
| 5Y Return (annualized) | -0.32% | +1.92% | |
| Volatility (annualized) | 4.6% | 1.4% | |
| Max Drawdown | -19.6% | -6.7% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | Apr 3, 2007 | Nov 19, 2009 |
BND vs VGSH Performance
Vanguard Total Bond Market ETF (BND) is a ETF from Vanguard (US) and Vanguard Short Term Treasury ETF (VGSH) is a ETF from Vanguard (US). Over the past year BND returned +1.81% while VGSH returned +2.51%. Year to date, BND is down 0.04% versus a gain of 0.96% for VGSH.
Over three years, BND compounded at +4.14% per year against +4.24% for VGSH; over five years the annualized figures are -0.32% and +1.92% respectively. Across the full 17-year window we track, VGSH has the edge at +0.72% annualized vs +0.70%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BND has been the more volatile fund, with annualized monthly volatility of 4.6% 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 worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.73. 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 4.02% against 3.85% for VGSH.
Holdings Overlap
BND and VGSH share 16 holdings out of 1182 unique holdings combined, representing a 2.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in BND | Weight in VGSH | Difference |
|---|---|---|---|
| T 2.875 08/15/28 | 0.20% | 1.26% | 1.06% |
| T 3.875 10/15/27 | 0.20% | 1.18% | 0.98% |
| T 3.75 04/15/28 | 0.14% | 1.17% | 1.03% |
| T 1.25 06/30/28 | Pro | Pro | Pro |
| T 1.375 12/31/28 | Pro | Pro | Pro |
| T 3.75 04/30/27 | Pro | Pro | Pro |
| T 2.25 08/15/27 | Pro | Pro | Pro |
| T 2.25 11/15/27 | Pro | Pro | Pro |
| T 4.125 09/30/27 | Pro | Pro | Pro |
| T 3.875 11/30/27 | Pro | Pro | Pro |
Frequently Asked Questions
Which is cheaper, BND or VGSH?
BND has an expense ratio of 0.03% while VGSH charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, BND or VGSH?
Over the past year BND returned +1.81% vs +2.51% for VGSH, so VGSH leads on 1-year performance. Over the longest common window we track (17 years), BND annualized +0.70% vs +0.72% for VGSH. Past performance does not guarantee future results.
Which is riskier, BND or VGSH?
BND has been the more volatile fund at 4.6% 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 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BND and VGSH?
BND and VGSH share 16 common holdings with a 2.7% weight overlap. Combined, they hold 1182 unique securities.
Which pays a higher dividend, BND or VGSH?
BND yields 4.02% while VGSH yields 3.85%, so BND currently pays the higher dividend yield.
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