VGSH vs VTBNX
Vanguard Short Term Treasury ETF vs Vanguard Total Bond Market II Index Fund Institutional Shares
Quick Verdict
VTBNX has a lower expense ratio. VGSH delivered stronger 1-year returns. VTBNX offers more diversification with 15,623 holdings.
Side-by-Side Comparison
| Metric | VGSH | VTBNX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.02% | |
| AUM | $34.7B | $207.3B | |
| Dividend Yield | 3.85% | 3.79% | |
| Holdings | 94 | 15,623 | |
| YTD Return | +1.11% | -2.70% | |
| 1Y Return | +2.94% | -1.68% | |
| 3Y Return (annualized) | +4.40% | +0.65% | |
| 5Y Return (annualized) | +1.96% | -3.62% | |
| Volatility (annualized) | 1.4% | 6.3% | |
| Max Drawdown | -6.7% | -21.5% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | Nov 19, 2009 | Feb 17, 2009 |
VGSH vs VTBNX Performance
Vanguard Short Term Treasury ETF (VGSH) is a ETF from Vanguard (US) and Vanguard Total Bond Market II Index Fund Institutional Shares (VTBNX) is a mutual fund from Vanguard (US). Over the past year VGSH returned +2.94% while VTBNX returned -1.68%. Year to date, VGSH is up 1.11% versus a loss of 2.70% for VTBNX.
Over three years, VGSH compounded at +4.40% per year against +0.65% for VTBNX; over five years the annualized figures are +1.96% and -3.62% respectively. Across the full 5-year window we track, VGSH has the edge at +0.73% annualized vs -3.62%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTBNX has been the more volatile fund, with annualized monthly volatility of 6.3% 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 -6.7% for VGSH and -21.5% for VTBNX. 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 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VGSH charges 0.03% per year while VTBNX 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 3.85% against 3.79% for VTBNX.
Holdings Overlap
VGSH and VTBNX share 16 holdings out of 12728 unique holdings combined, representing a 2.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VGSH | Weight in VTBNX | Difference |
|---|---|---|---|
| T 2.875 08/15/28 | 1.26% | 0.15% | 1.11% |
| T 3.875 10/15/27 | 1.18% | 0.20% | 0.98% |
| T 3.75 04/15/28 | 1.17% | 0.16% | 1.01% |
| T 3.75 04/30/27 | Pro | Pro | Pro |
| T 1.25 06/30/28 | Pro | Pro | Pro |
| T 1.375 12/31/28 | Pro | Pro | Pro |
| T 2.25 08/15/27 | Pro | Pro | Pro |
| T 4.125 09/30/27 | Pro | Pro | Pro |
| T 2.25 11/15/27 | Pro | Pro | Pro |
| T 4.125 10/31/27 | Pro | Pro | Pro |
Frequently Asked Questions
Which is cheaper, VGSH or VTBNX?
VGSH has an expense ratio of 0.03% while VTBNX charges 0.02%. VTBNX is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VGSH or VTBNX?
Over the past year VGSH returned +2.94% vs -1.68% for VTBNX, so VGSH leads on 1-year performance. Over the longest common window we track (5 years), VGSH annualized +0.73% vs -3.62% for VTBNX. Past performance does not guarantee future results.
Which is riskier, VGSH or VTBNX?
VTBNX has been the more volatile fund at 6.3% annualized versus 1.4% for VGSH. Worst drawdown: VGSH -6.7% vs VTBNX -21.5%.
Should I hold both VGSH and VTBNX?
VGSH and VTBNX have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGSH and VTBNX?
VGSH and VTBNX share 16 common holdings with a 2.2% weight overlap. Combined, they hold 12728 unique securities.
Which pays a higher dividend, VGSH or VTBNX?
VGSH yields 3.85% while VTBNX yields 3.79%, so VGSH currently pays the higher dividend yield.
Popular Fund Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.