VGSH vs VIITX
Vanguard Short Term Treasury ETF vs Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class
Which is better, VGSH or VIITX?
Short Term Government Bond against Intermediate Term Bond.
VIITX has a lower expense ratio. The two have moved almost in lockstep, correlation 0.90.
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 | VGSH | VIITX |
|---|---|---|
| Expense Ratio | 0.03% | 0.02%Best |
| AUM | $34.8B | - |
| Dividend Yield | 3.82% | 4.60% |
| Holdings | 92 | 2,710 |
| YTD Price Return | -2.01% | -4.34% |
| 1Y Price Return | -1.98% | -4.39% |
| 3Y Price Return (annualized) | -0.01% | +0.21% |
| 5Y Price Return (annualized) | -1.26% | -2.64% |
| Volatility (annualized) | 1.9%Best | 4.3% |
| Max Drawdown | -6.5%Best | -14.4% |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Fixed Income |
| Style | Short Term Government Bond | Intermediate Term Bond |
| Inception | Nov 19, 2009 | Dec 1, 1997 |
Not shown on this pair: $10,000 over 5 years, Top 10 Weight.
A price return is not the return of a fund that pays its income out. The coupon or distribution never appears in the price, so the return rows carry no winner here. VGSH currently yields 3.82% and VIITX 4.60%.
Volatility and max drawdown are measured over the window both funds cover: Oct 11, 2021 to Oct 8, 2026 (5 years).
VGSH vs VIITX Performance
Vanguard Short Term Treasury ETF (VGSH) is an ETF from Vanguard (US) and Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class (VIITX) is a mutual fund from Vanguard (US). Over the past year VGSH's price moved -1.98% and VIITX's -4.39%, before the income each one paid out.
Over three years, VGSH compounded at -0.01% per year against +0.21% for VIITX; over five years the annualized figures are -1.26% and -2.64% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VIITX has been the more volatile fund, with annualized monthly volatility of 4.3% compared with 1.9% 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 -6.5% for VGSH and -14.4% for VIITX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VGSH charges 0.03% per year while VIITX charges 0.02%. On a $10,000 position that is $3 vs $2 annually, a gap of $1 per year that compounds over a long holding period. On income, VGSH currently yields 3.82% against 4.60% for VIITX.
Structure and taxes
VIITX is a mutual fund and VGSH is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
We hold position weights for 71 holdings in VGSH and 691 in VIITX, totalling 76.6% and 32.7% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 7 positions appear in both.
7 positions in common, counted across the 71 positions we hold weights for in VGSH and 691 in VIITX, against full books of 92 and 2,710.
Top Shared Holdings
| Stock | Weight in VGSH | Weight in VIITX | Difference |
|---|---|---|---|
| T 3.5 01/31/28Us Treasury N/B 3.375 01/31/2028 | 2.25% | 0.77% | 1.48% |
| T 4.5 05/31/29Treasury Note (Otr) 4.5% May 31, 2029 | 1.37% | 0.50% | 0.87% |
| T 4.25 06/30/29United States Treasuryu.S. Treasury Notes | 1.31% | 0.52% | 0.79% |
| T 1 07/31/28United States Treasuryu.S. Treasury Notes 07/31/2028 | 1.24% | 0.46% | 0.78% |
| T 3.875 07/15/28Treasury Note (Otr) 3.88% Jul 15, 2028 | 1.25% | 0.20% | 1.05% |
| T 1.375 10/31/28Treasury Note (Otr) 1.38% Oct 31, 2028 | 1.08% | 0.29% | 0.79% |
| T 2.75 05/31/29United States Treasury Note/Bond Us Treasury N/B | 0.76% | 0.22% | 0.54% |
You are not choosing between two funds in isolation.
Whichever of VGSH and VIITX 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, VGSH or VIITX?
VGSH has an expense ratio of 0.03% while VIITX charges 0.02%. VIITX is the cheaper option, by $1 a year on a $10,000 investment.
Which is riskier, VGSH or VIITX?
VIITX has been the more volatile fund at 4.3% annualized versus 1.9% for VGSH. Worst drawdown: VGSH -6.5% vs VIITX -14.4%.
Should I hold both VGSH and VIITX?
VGSH and VIITX have a monthly-return correlation of 0.90, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
Which pays a higher dividend, VGSH or VIITX?
VGSH yields 3.82% while VIITX yields 4.60%, so VIITX currently pays the higher dividend yield.
Is it better to hold VIITX or VGSH in a taxable account?
VGSH is an ETF and VIITX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VIITX better than VGSH?
VIITX has a lower expense ratio. The two have moved almost in lockstep, correlation 0.90. Which one suits a particular account depends on what it is for. This is information, not a recommendation.