VBR vs VGSH
Vanguard Morningstar Small-Cap Value ETF vs Vanguard Short Term Treasury ETF
Which is better, VBR or VGSH?
Small Cap Value against Short Term Government Bond.
VGSH has a lower expense ratio. VBR led over 1Y, 3Y, 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 | VBR | VGSH |
|---|---|---|
| Expense Ratio | 0.05% | 0.03%Best |
| AUM | $37.3B | $34.8B |
| Dividend Yield | 1.76% | 3.82% |
| Holdings | 839 | 92 |
| YTD Return | +10.94%Best | +0.75% |
| 1Y Return | +15.21%Best | +1.75% |
| 3Y Return (annualized) | +16.30%Best | +4.05% |
| 5Y Return (annualized) | +8.57%Best | +1.92% |
| Volatility (annualized) | 18.4% | 1.4%Best |
| Max Drawdown | -47.0% | -6.7%Best |
| $10,000 over 5 years | $15,085Best | $10,998 |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Fixed Income |
| Style | Small Cap Value | Short Term Government Bond |
| Inception | Jan 26, 2004 | 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).
VBR 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
VBR vs VGSH Performance
Vanguard Morningstar Small-Cap Value ETF (VBR) is an ETF from Vanguard (US) and Vanguard Short Term Treasury ETF (VGSH) is an ETF from Vanguard (US). Over the past year VBR returned +15.21% while VGSH returned +1.75%. Year to date, VBR is up 10.94% versus a gain of 0.75% for VGSH.
Over three years, VBR compounded at +16.30% per year against +4.05% for VGSH; over five years the annualized figures are +8.57% and +1.92% respectively. Across the full 17-year window we track, VBR has the edge at +9.96% annualized vs +0.70%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VBR has been the more volatile fund, with annualized monthly volatility of 18.4% 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 -47.0% for VBR 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 -0.07. They move largely independently of each other.
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 3.82% for VGSH.
Holdings Overlap
At least 0.3% of VBR's money is in holdings VGSH also owns.
Stated as a floor: for VGSH, our book for it covers 76.6% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 810 positions we hold weights for in VBR and 71 in VGSH, against full books of 839 and 92.
Top Shared Holdings
| Stock | Weight in VBR | Weight in VGSH | Difference |
|---|---|---|---|
| CURVVanguard Market Liquidity Fund | 0.35% | 0.40% | 0.05% |
You are not choosing between two funds in isolation.
Whichever of VBR 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, VBR or VGSH?
VBR has an expense ratio of 0.05% while VGSH charges 0.03%. VGSH is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, VBR or VGSH?
Over the past year VBR returned +15.21% vs +1.75% for VGSH, so VBR leads on 1-year performance. Over the longest common window we track (17 years), VBR annualized +9.96% vs +0.70% for VGSH. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VBR or VGSH?
VBR has been the more volatile fund at 18.4% annualized versus 1.4% for VGSH. Worst drawdown: VBR -47.0% vs VGSH -6.7%.
Should I hold both VBR and VGSH?
VBR and VGSH have a monthly-return correlation of -0.07, 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, VBR or VGSH?
VBR yields 1.76% while VGSH yields 3.82%, so VGSH currently pays the higher dividend yield.
Is VGSH better than VBR?
VGSH has a lower expense ratio. VBR led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.