VGSH vs VT

Quick Verdict

VGSH has a lower expense ratio. VT delivered stronger 1-year returns. VT offers more diversification with 8927 holdings.

Lower Fees: VGSHHigher Returns: VTMore Diversified: VT

Side-by-Side Comparison

MetricVGSHVTWinner
Expense Ratio0.03%0.06%
AUM$29.4B$77.6B
Dividend Yield3.87%1.61%
Holdings9410,133
YTD Return+0.65%+13.85%
1Y Return+2.56%+24.48%
3Y Return (annualized)+4.25%+20.49%
5Y Return (annualized)+1.87%+10.98%
Volatility (annualized)1.4%16.6%
Max Drawdown-6.7%-50.6%
Fund FamilyVanguard (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionNov 19, 2009Jun 24, 2008

VGSH vs VT Performance

Vanguard Short Term Treasury ETF (VGSH) is a ETF from Vanguard (US) and Vanguard Total World Stock ETF (VT) is a ETF from Vanguard (US). Over the past year VGSH returned +2.56% while VT returned +24.48%. Year to date, VGSH is up 0.65% versus a gain of 13.85% for VT.

Over three years, VGSH compounded at +4.25% per year against +20.49% for VT; over five years the annualized figures are +1.87% and +10.98% respectively. Across the full 17-year window we track, VT has the edge at +7.35% annualized vs +0.71%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VT has been the more volatile fund, with annualized monthly volatility of 16.6% 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 -6.7% for VGSH and -50.6% for VT. 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 0.05. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VGSH charges 0.03% per year while VT charges 0.06%. On a $10,000 position that is $3 vs $6 annually, a gap of $3 per year that compounds over a long holding period. On income, VGSH currently yields 3.87% against 1.61% for VT.

Holdings Overlap

0.0%overlap

VGSH and VT share 0 holdings out of 9003 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, VGSH or VT?

VGSH has an expense ratio of 0.03% while VT charges 0.06%. VGSH is the cheaper option. On a $10,000 investment, that is $3 per year of difference.

Which performed better, VGSH or VT?

Over the past year VGSH returned +2.56% vs +24.48% for VT, so VT leads on 1-year performance. Over the longest common window we track (17 years), VGSH annualized +0.71% vs +7.35% for VT. Past performance does not guarantee future results.

Which is riskier, VGSH or VT?

VT has been the more volatile fund at 16.6% annualized versus 1.4% for VGSH. Worst drawdown: VGSH -6.7% vs VT -50.6%.

Should I hold both VGSH and VT?

VGSH and VT have a monthly-return correlation of 0.05, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VGSH and VT?

VGSH and VT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 9003 unique securities.

Which pays a higher dividend, VGSH or VT?

VGSH yields 3.87% while VT yields 1.61%, so VGSH currently pays the higher dividend yield.

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