VGSH vs VTILX
Vanguard Short Term Treasury ETF vs Vanguard Total International Bond II Index Fund Class Institutional
Quick Verdict
VGSH has a lower expense ratio. VGSH delivered stronger 1-year returns. VTILX offers more diversification with 7,391 holdings.
Side-by-Side Comparison
| Metric | VGSH | VTILX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.07% | |
| AUM | $34.7B | $141.9B | |
| Dividend Yield | 3.85% | 4.19% | |
| Holdings | 94 | 7,391 | |
| YTD Return | +1.11% | -1.38% | |
| 1Y Return | +2.94% | -3.21% | |
| 3Y Return (annualized) | +4.40% | -0.30% | |
| 5Y Return (annualized) | +1.96% | - | |
| Volatility (annualized) | 1.4% | 6.0% | |
| Max Drawdown | -6.7% | -15.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | Nov 19, 2009 | Feb 17, 2021 |
VGSH vs VTILX Performance
Vanguard Short Term Treasury ETF (VGSH) is a 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 returned +2.94% while VTILX returned -3.21%. Year to date, VGSH is up 1.11% versus a loss of 1.38% for VTILX.
Over three years, VGSH compounded at +4.40% per year against -0.30% for VTILX. Across the full 5-year window we track, VGSH has the edge at +0.73% annualized vs -2.89%. 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 1.4% 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 -15.3% for VTILX. 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 0.72. 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 3.85% against 4.19% for VTILX.
Holdings Overlap
VGSH and VTILX share 0 holdings out of 1475 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 VTILX?
VGSH has an expense ratio of 0.03% while VTILX charges 0.07%. VGSH is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, VGSH or VTILX?
Over the past year VGSH returned +2.94% vs -3.21% for VTILX, so VGSH leads on 1-year performance. Over the longest common window we track (5 years), VGSH annualized +0.73% vs -2.89% for VTILX. Past performance does not guarantee future results.
Which is riskier, VGSH or VTILX?
VTILX has been the more volatile fund at 6.0% annualized versus 1.4% for VGSH. Worst drawdown: VGSH -6.7% vs VTILX -15.3%.
Should I hold both VGSH and VTILX?
VGSH and VTILX have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGSH and VTILX?
VGSH and VTILX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1475 unique securities.
Which pays a higher dividend, VGSH or VTILX?
VGSH yields 3.85% while VTILX yields 4.19%, so VTILX currently pays the higher dividend yield.
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