VGIT vs VGSH

Quick Verdict

VGSH delivered stronger 1-year returns. VGIT offers more diversification with 84 holdings.

Lower Fees: TiedHigher Returns: VGSHMore Diversified: VGIT

Side-by-Side Comparison

MetricVGITVGSHWinner
Expense Ratio0.03%0.03%
AUM$42.1B$29.4B
Dividend Yield3.84%3.87%
Holdings10694
YTD Return-0.62%+0.69%
1Y Return+1.32%+2.54%
3Y Return (annualized)+3.60%+4.15%
5Y Return (annualized)-0.12%+1.88%
Volatility (annualized)4.3%1.4%
Max Drawdown-17.2%-6.7%
Fund FamilyVanguard (US)Vanguard (US)
CategoryFixed IncomeFixed Income
InceptionNov 19, 2009Nov 19, 2009

VGIT vs VGSH Performance

Vanguard Intermediate Term Treasury ETF (VGIT) is a ETF from Vanguard (US) and Vanguard Short Term Treasury ETF (VGSH) is a ETF from Vanguard (US). Over the past year VGIT returned +1.32% while VGSH returned +2.54%. Year to date, VGIT is down 0.62% versus a gain of 0.69% for VGSH.

Over three years, VGIT compounded at +3.60% per year against +4.15% for VGSH; over five years the annualized figures are -0.12% and +1.88% respectively. Across the full 17-year window we track, VGIT has the edge at +0.75% annualized vs +0.71%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VGIT has been the more volatile fund, with annualized monthly volatility of 4.3% 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 -17.2% for VGIT 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 0.84. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

VGIT charges 0.03% per year while VGSH charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VGIT currently yields 3.84% against 3.87% for VGSH.

Holdings Overlap

0.0%overlap

VGIT and VGSH share 0 holdings out of 160 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, VGIT or VGSH?

VGIT 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, VGIT or VGSH?

Over the past year VGIT returned +1.32% vs +2.54% for VGSH, so VGSH leads on 1-year performance. Over the longest common window we track (17 years), VGIT annualized +0.75% vs +0.71% for VGSH. Past performance does not guarantee future results.

Which is riskier, VGIT or VGSH?

VGIT has been the more volatile fund at 4.3% annualized versus 1.4% for VGSH. Worst drawdown: VGIT -17.2% vs VGSH -6.7%.

Should I hold both VGIT and VGSH?

VGIT and VGSH have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VGIT and VGSH?

VGIT and VGSH share 0 common holdings with a 0.0% weight overlap. Combined, they hold 160 unique securities.

Which pays a higher dividend, VGIT or VGSH?

VGIT yields 3.84% while VGSH yields 3.87%, so VGSH currently pays the higher dividend yield.

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