VGSH vs VTEB
Vanguard Short Term Treasury ETF vs Vanguard Tax-Exempt Bond ETF
Quick Verdict
VTEB delivered stronger 1-year returns. VTEB offers more diversification with 3533 holdings.
Side-by-Side Comparison
| Metric | VGSH | VTEB | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $29.4B | $46.0B | |
| Dividend Yield | 3.87% | 3.34% | |
| Holdings | 94 | 9,952 | |
| YTD Return | +0.65% | +0.62% | |
| 1Y Return | +2.56% | +5.07% | |
| 3Y Return (annualized) | +4.25% | +3.14% | |
| 5Y Return (annualized) | +1.87% | +0.61% | |
| Volatility (annualized) | 1.4% | 4.9% | |
| Max Drawdown | -6.7% | -17.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Tax Preferred | |
| Inception | Nov 19, 2009 | Aug 21, 2015 |
VGSH vs VTEB Performance
Vanguard Short Term Treasury ETF (VGSH) is a ETF from Vanguard (US) and Vanguard Tax-Exempt Bond ETF (VTEB) is a ETF from Vanguard (US). Over the past year VGSH returned +2.56% while VTEB returned +5.07%. Year to date, VGSH is up 0.65% versus a gain of 0.62% for VTEB.
Over three years, VGSH compounded at +4.25% per year against +3.14% for VTEB; over five years the annualized figures are +1.87% and +0.61% respectively. Across the full 11-year window we track, VTEB has the edge at +1.27% annualized vs +0.71%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTEB has been the more volatile fund, with annualized monthly volatility of 4.9% 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 -17.0% for VTEB. 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VGSH charges 0.03% per year while VTEB charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VGSH currently yields 3.87% against 3.34% for VTEB.
Holdings Overlap
VGSH and VTEB share 0 holdings out of 3609 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 VTEB?
VGSH has an expense ratio of 0.03% while VTEB charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, VGSH or VTEB?
Over the past year VGSH returned +2.56% vs +5.07% for VTEB, so VTEB leads on 1-year performance. Over the longest common window we track (11 years), VGSH annualized +0.71% vs +1.27% for VTEB. Past performance does not guarantee future results.
Which is riskier, VGSH or VTEB?
VTEB has been the more volatile fund at 4.9% annualized versus 1.4% for VGSH. Worst drawdown: VGSH -6.7% vs VTEB -17.0%.
Should I hold both VGSH and VTEB?
VGSH and VTEB have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGSH and VTEB?
VGSH and VTEB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3609 unique securities.
Which pays a higher dividend, VGSH or VTEB?
VGSH yields 3.87% while VTEB yields 3.34%, so VGSH currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.