VB vs VGSH
Vanguard Morningstar Small-Cap ETF vs Vanguard Short Term Treasury ETF
Quick Verdict
VB delivered stronger 1-year returns. VB offers more diversification with 1,311 holdings.
Side-by-Side Comparison
| Metric | VB | VGSH | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $79.7B | $34.7B | |
| Dividend Yield | 1.22% | 3.85% | |
| Holdings | 1,311 | 94 | |
| YTD Return | +17.13% | +1.14% | |
| 1Y Return | +21.90% | +2.66% | |
| 3Y Return (annualized) | +17.26% | +4.38% | |
| 5Y Return (annualized) | +7.59% | +1.96% | |
| Volatility (annualized) | 18.9% | 1.4% | |
| Max Drawdown | -61.0% | -6.7% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Jan 26, 2004 | Nov 19, 2009 |
VB vs VGSH Performance
Vanguard Morningstar Small-Cap ETF (VB) is a ETF from Vanguard (US) and Vanguard Short Term Treasury ETF (VGSH) is a ETF from Vanguard (US). Over the past year VB returned +21.90% while VGSH returned +2.66%. Year to date, VB is up 17.13% versus a gain of 1.14% for VGSH.
Over three years, VB compounded at +17.26% per year against +4.38% for VGSH; over five years the annualized figures are +7.59% and +1.96% respectively. Across the full 17-year window we track, VB has the edge at +8.81% annualized vs +0.73%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VB has been the more volatile fund, with annualized monthly volatility of 18.9% 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 -61.0% for VB 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 -0.06. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VB charges 0.03% per year while VGSH charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VB currently yields 1.22% against 3.85% for VGSH.
Holdings Overlap
VB and VGSH share 0 holdings out of 1317 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VB or VGSH?
VB 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, VB or VGSH?
Over the past year VB returned +21.90% vs +2.66% for VGSH, so VB leads on 1-year performance. Over the longest common window we track (17 years), VB annualized +8.81% vs +0.73% for VGSH. Past performance does not guarantee future results.
Which is riskier, VB or VGSH?
VB has been the more volatile fund at 18.9% annualized versus 1.4% for VGSH. Worst drawdown: VB -61.0% vs VGSH -6.7%.
Should I hold both VB and VGSH?
VB and VGSH have a monthly-return correlation of -0.06, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VB and VGSH?
VB and VGSH share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1317 unique securities.
Which pays a higher dividend, VB or VGSH?
VB yields 1.22% while VGSH yields 3.85%, so VGSH currently pays the higher dividend yield.
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