VGSH vs VTILX
Vanguard Short Term Treasury ETF vs Vanguard Total International Bond II Index Fund Class Institutional
Which is better, VGSH or VTILX?
VGSH costs less.
VGSH has a lower expense ratio.
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 | VTILX |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.07% |
| AUM | $34.7B | $141.9B |
| Dividend Yield | 3.82% | 4.23% |
| Holdings | 94 | 7,415 |
| YTD Price Return | -1.80% | -2.69% |
| 1Y Price Return | -1.92% | -4.85% |
| 3Y Price Return (annualized) | +0.08% | -0.87% |
| 5Y Price Return (annualized) | -1.27% | - |
| Volatility (annualized) | 1.9%Best | 6.0% |
| Max Drawdown | -6.5%Best | -15.3% |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Fixed Income |
| Style | Short Term Government Bond | - |
| Inception | Nov 19, 2009 | Feb 17, 2021 |
Not shown on this pair: $10,000 over 4.9 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 VTILX 4.23%.
Volatility and max drawdown, and the $10,000 over 4.9 years row, are measured over the window both funds cover: Oct 25, 2021 to Sep 10, 2026 (4.9 years).
VGSH vs VTILX Performance
Vanguard Short Term Treasury ETF (VGSH) is an ETF from Vanguard (US) and Vanguard Total International Bond II Index Fund Class Institutional (VTILX) is a mutual fund from Vanguard (US). Over the past year VGSH's price moved -1.92% and VTILX's -4.85%, before the income each one paid out.
Over three years, VGSH compounded at +0.08% per year against -0.87% for VTILX.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTILX has been the more volatile fund, with annualized monthly volatility of 6.0% 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 -15.3% for VTILX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VGSH charges 0.03% per year while VTILX charges 0.07%. On a $10,000 position that is $3 vs $7 annually, a gap of $4 per year that compounds over a long holding period. On income, VGSH currently yields 3.82% against 4.23% for VTILX.
Structure and taxes
VTILX 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 16 holdings in VGSH and 1,459 in VTILX, totalling 15.5% and 7.1% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 242 days apart, VGSH as of Jun 30, 2026 and VTILX as of Oct 31, 2025, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 16 positions we hold weights for in VGSH and 1,459 in VTILX, against full books of 94 and 7,415.
You are not choosing between two funds in isolation.
Whichever of VGSH and VTILX 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 VTILX?
VGSH has an expense ratio of 0.03% while VTILX charges 0.07%. VGSH is the cheaper option, by $4 a year on a $10,000 investment.
Which is riskier, VGSH or VTILX?
VTILX has been the more volatile fund at 6.0% annualized versus 1.9% for VGSH. Worst drawdown: VGSH -6.5% vs VTILX -15.3%.
Should I hold both VGSH and VTILX?
VGSH and VTILX have a monthly-return correlation of 0.75, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VGSH or VTILX?
VGSH yields 3.82% while VTILX yields 4.23%, so VTILX currently pays the higher dividend yield.
Is it better to hold VTILX or VGSH in a taxable account?
VGSH is an ETF and VTILX 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 VTILX better than VGSH?
VGSH has a lower expense ratio. Which one suits a particular account depends on what it is for. This is information, not a recommendation.