VGSH vs VTI
Vanguard Short Term Treasury ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | VGSH | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $34.7B | $666.9B | |
| Dividend Yield | 3.85% | 1.07% | |
| Holdings | 94 | 3,543 | |
| YTD Return | +1.13% | +12.65% | |
| 1Y Return | +2.90% | +21.39% | |
| 3Y Return (annualized) | +4.38% | +21.54% | |
| 5Y Return (annualized) | +1.96% | +12.11% | |
| Volatility (annualized) | 1.4% | 15.3% | |
| Max Drawdown | -6.7% | -56.6% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 19, 2009 | May 24, 2001 |
VGSH vs VTI Performance
Vanguard Short Term Treasury ETF (VGSH) is a ETF from Vanguard (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year VGSH returned +2.90% while VTI returned +21.39%. Year to date, VGSH is up 1.13% versus a gain of 12.65% for VTI.
Over three years, VGSH compounded at +4.38% per year against +21.54% for VTI; over five years the annualized figures are +1.96% and +12.11% respectively. Across the full 17-year window we track, VTI has the edge at +8.07% annualized vs +0.73%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -56.6% for VTI. 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 0.00. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VGSH charges 0.03% per year while VTI charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VGSH currently yields 3.85% against 1.07% for VTI.
Holdings Overlap
VGSH and VTI share 0 holdings out of 2803 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 VTI?
VGSH has an expense ratio of 0.03% while VTI charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, VGSH or VTI?
Over the past year VGSH returned +2.90% vs +21.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (17 years), VGSH annualized +0.73% vs +8.07% for VTI. Past performance does not guarantee future results.
Which is riskier, VGSH or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 1.4% for VGSH. Worst drawdown: VGSH -6.7% vs VTI -56.6%.
Should I hold both VGSH and VTI?
VGSH and VTI have a monthly-return correlation of 0.00, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGSH and VTI?
VGSH and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2803 unique securities.
Which pays a higher dividend, VGSH or VTI?
VGSH yields 3.85% while VTI yields 1.07%, so VGSH currently pays the higher dividend yield.
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