VGSH vs VTIP
Vanguard Short Term Treasury ETF vs Vanguard Short-Term Inflation-Protected Securities ETF
Quick Verdict
VTIP delivered stronger 1-year returns. VGSH offers more diversification with 76 holdings.
Side-by-Side Comparison
| Metric | VGSH | VTIP | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $29.4B | $19.3B | |
| Dividend Yield | 3.87% | 3.60% | |
| Holdings | 94 | 27 | |
| YTD Return | +0.69% | +1.87% | |
| 1Y Return | +2.54% | +3.01% | |
| 3Y Return (annualized) | +4.15% | +5.37% | |
| 5Y Return (annualized) | +1.88% | +3.39% | |
| Volatility (annualized) | 1.4% | 2.4% | |
| Max Drawdown | -6.7% | -7.1% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | Nov 19, 2009 | Oct 12, 2012 |
VGSH vs VTIP Performance
Vanguard Short Term Treasury ETF (VGSH) is a ETF from Vanguard (US) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is a ETF from Vanguard (US). Over the past year VGSH returned +2.54% while VTIP returned +3.01%. Year to date, VGSH is up 0.69% versus a gain of 1.87% for VTIP.
Over three years, VGSH compounded at +4.15% per year against +5.37% for VTIP; over five years the annualized figures are +1.88% and +3.39% respectively. Across the full 14-year window we track, VTIP has the edge at +1.58% annualized vs +0.71%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTIP has been the more volatile fund, with annualized monthly volatility of 2.4% 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 -7.1% for VTIP. 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VGSH charges 0.03% per year while VTIP charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VGSH currently yields 3.87% against 3.60% for VTIP.
Holdings Overlap
VGSH and VTIP share 0 holdings out of 99 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 VTIP?
VGSH has an expense ratio of 0.03% while VTIP charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, VGSH or VTIP?
Over the past year VGSH returned +2.54% vs +3.01% for VTIP, so VTIP leads on 1-year performance. Over the longest common window we track (14 years), VGSH annualized +0.71% vs +1.58% for VTIP. Past performance does not guarantee future results.
Which is riskier, VGSH or VTIP?
VTIP has been the more volatile fund at 2.4% annualized versus 1.4% for VGSH. Worst drawdown: VGSH -6.7% vs VTIP -7.1%.
Should I hold both VGSH and VTIP?
VGSH and VTIP have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGSH and VTIP?
VGSH and VTIP share 0 common holdings with a 0.0% weight overlap. Combined, they hold 99 unique securities.
Which pays a higher dividend, VGSH or VTIP?
VGSH yields 3.87% while VTIP yields 3.60%, so VGSH currently pays the higher dividend yield.
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