VB vs VGSH

Quick Verdict

VB delivered stronger 1-year returns. VB offers more diversification with 1112 holdings.

Lower Fees: TiedHigher Returns: VBMore Diversified: VB

Side-by-Side Comparison

MetricVBVGSHWinner
Expense Ratio0.03%0.03%
AUM$81.5B$29.4B
Dividend Yield1.48%3.87%
Holdings1,32494
YTD Return+17.82%+0.69%
1Y Return+29.09%+2.54%
3Y Return (annualized)+16.24%+4.15%
5Y Return (annualized)+8.18%+1.88%
Volatility (annualized)18.9%1.4%
Max Drawdown-61.0%-6.7%
Fund FamilyVanguard (US)Vanguard (US)
CategoryEquityFixed Income
InceptionJan 26, 2004Nov 19, 2009

VB vs VGSH Performance

Vanguard 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 +29.09% while VGSH returned +2.54%. Year to date, VB is up 17.82% versus a gain of 0.69% for VGSH.

Over three years, VB compounded at +16.24% per year against +4.15% for VGSH; over five years the annualized figures are +8.18% and +1.88% respectively. Across the full 17-year window we track, VB has the edge at +8.86% annualized vs +0.71%. 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 1.48% against 3.87% for VGSH.

Holdings Overlap

0.0%overlap

VB and VGSH share 0 holdings out of 1188 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 +29.09% vs +2.54% for VGSH, so VB leads on 1-year performance. Over the longest common window we track (17 years), VB annualized +8.86% vs +0.71% 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 1188 unique securities.

Which pays a higher dividend, VB or VGSH?

VB yields 1.48% while VGSH yields 3.87%, so VGSH currently pays the higher dividend yield.

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