VBR vs VGSH
Vanguard Morningstar Small-Cap Value ETF vs Vanguard Short Term Treasury ETF
Quick Verdict
VGSH has a lower expense ratio. VBR delivered stronger 1-year returns. VBR offers more diversification with 847 holdings.
Side-by-Side Comparison
| Metric | VBR | VGSH | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.03% | |
| AUM | $37.3B | $30.2B | |
| Dividend Yield | 1.76% | 3.85% | |
| Holdings | 847 | 94 | |
| YTD Return | +15.57% | +0.99% | |
| 1Y Return | +20.52% | +2.48% | |
| 3Y Return (annualized) | +15.34% | +4.22% | |
| 5Y Return (annualized) | +9.35% | +1.92% | |
| Volatility (annualized) | 19.0% | 1.4% | |
| Max Drawdown | -64.0% | -6.7% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Jan 26, 2004 | Nov 19, 2009 |
VBR vs VGSH Performance
Vanguard Morningstar Small-Cap Value ETF (VBR) is a ETF from Vanguard (US) and Vanguard Short Term Treasury ETF (VGSH) is a ETF from Vanguard (US). Over the past year VBR returned +20.52% while VGSH returned +2.48%. Year to date, VBR is up 15.57% versus a gain of 0.99% for VGSH.
Over three years, VBR compounded at +15.34% per year against +4.22% for VGSH; over five years the annualized figures are +9.35% and +1.92% respectively. Across the full 17-year window we track, VBR has the edge at +7.91% annualized vs +0.72%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VBR has been the more volatile fund, with annualized monthly volatility of 19.0% 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 -64.0% for VBR 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 -0.08. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VBR charges 0.05% per year while VGSH charges 0.03%. On a $10,000 position that is $5 vs $3 annually, a gap of $2 per year that compounds over a long holding period. On income, VBR currently yields 1.76% against 3.85% for VGSH.
Holdings Overlap
VBR and VGSH share 0 holdings out of 852 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, VBR or VGSH?
VBR has an expense ratio of 0.05% while VGSH charges 0.03%. VGSH is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, VBR or VGSH?
Over the past year VBR returned +20.52% vs +2.48% for VGSH, so VBR leads on 1-year performance. Over the longest common window we track (17 years), VBR annualized +7.91% vs +0.72% for VGSH. Past performance does not guarantee future results.
Which is riskier, VBR or VGSH?
VBR has been the more volatile fund at 19.0% annualized versus 1.4% for VGSH. Worst drawdown: VBR -64.0% vs VGSH -6.7%.
Should I hold both VBR and VGSH?
VBR and VGSH have a monthly-return correlation of -0.08, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VBR and VGSH?
VBR and VGSH share 0 common holdings with a 0.0% weight overlap. Combined, they hold 852 unique securities.
Which pays a higher dividend, VBR or VGSH?
VBR yields 1.76% while VGSH yields 3.85%, so VGSH currently pays the higher dividend yield.
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