VGSH vs VUG

Quick Verdict

VUG delivered stronger 1-year returns. VUG offers more diversification with 155 holdings.

Lower Fees: TiedHigher Returns: VUGMore Diversified: VUG

Side-by-Side Comparison

MetricVGSHVUGWinner
Expense Ratio0.03%0.03%
AUM$29.4B$223.2B
Dividend Yield3.87%0.47%
Holdings94155
YTD Return+0.81%+10.98%
1Y Return+2.53%+16.82%
3Y Return (annualized)+4.29%+24.53%
5Y Return (annualized)+1.90%+13.10%
Volatility (annualized)1.4%16.5%
Max Drawdown-6.7%-51.4%
Fund FamilyVanguard (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionNov 19, 2009Jan 26, 2004

VGSH vs VUG Performance

Vanguard Short Term Treasury ETF (VGSH) is a ETF from Vanguard (US) and Vanguard Growth ETF (VUG) is a ETF from Vanguard (US). Over the past year VGSH returned +2.53% while VUG returned +16.82%. Year to date, VGSH is up 0.81% versus a gain of 10.98% for VUG.

Over three years, VGSH compounded at +4.29% per year against +24.53% for VUG; over five years the annualized figures are +1.90% and +13.10% respectively. Across the full 17-year window we track, VUG has the edge at +11.31% annualized vs +0.71%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VUG has been the more volatile fund, with annualized monthly volatility of 16.5% 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 -51.4% for VUG. 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 0.05. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VGSH charges 0.03% per year while VUG charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VGSH currently yields 3.87% against 0.47% for VUG.

Holdings Overlap

0.0%overlap

VGSH and VUG share 0 holdings out of 222 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 VUG?

VGSH has an expense ratio of 0.03% while VUG charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.

Which performed better, VGSH or VUG?

Over the past year VGSH returned +2.53% vs +16.82% for VUG, so VUG leads on 1-year performance. Over the longest common window we track (17 years), VGSH annualized +0.71% vs +11.31% for VUG. Past performance does not guarantee future results.

Which is riskier, VGSH or VUG?

VUG has been the more volatile fund at 16.5% annualized versus 1.4% for VGSH. Worst drawdown: VGSH -6.7% vs VUG -51.4%.

Should I hold both VGSH and VUG?

VGSH and VUG have a monthly-return correlation of 0.05, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VGSH and VUG?

VGSH and VUG share 0 common holdings with a 0.0% weight overlap. Combined, they hold 222 unique securities.

Which pays a higher dividend, VGSH or VUG?

VGSH yields 3.87% while VUG yields 0.47%, so VGSH currently pays the higher dividend yield.

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