VGSH vs VUG
Vanguard Short Term Treasury ETF vs Vanguard Morningstar Growth ETF
Which is better, VGSH or VUG?
Short Term Government Bond against Large Cap Growth.
VUG led over 1Y, 3Y, 5Y and the full window.
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 | VUG |
|---|---|---|
| Expense Ratio | 0.03%Tie | 0.03%Tie |
| AUM | $34.7B | $219.5B |
| Dividend Yield | 3.82% | 0.38% |
| Holdings | 94 | 146 |
| YTD Return | +0.34% | +11.65%Best |
| 1Y Return | +1.50% | +13.57%Best |
| 3Y Return (annualized) | +4.06% | +26.10%Best |
| 5Y Return (annualized) | +1.81% | +12.87%Best |
| Volatility (annualized) | 1.4%Best | 16.8% |
| Max Drawdown | -6.7%Best | -35.6% |
| $10,000 over 5 years | $10,938 | $18,319Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Short Term Government Bond | Large Cap Growth |
| Inception | Nov 19, 2009 | Jan 26, 2004 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 23, 2009 to Sep 23, 2026 (16.8 years).
VGSH vs VUG growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
VGSH vs VUG Performance
Vanguard Short Term Treasury ETF (VGSH) is an ETF from Vanguard (US) and Vanguard Morningstar Growth ETF (VUG) is an ETF from Vanguard (US). Over the past year VGSH returned +1.50% while VUG returned +13.57%. Year to date, VGSH is up 0.34% versus a gain of 11.65% for VUG.
Over three years, VGSH compounded at +4.06% per year against +26.10% for VUG; over five years the annualized figures are +1.81% and +12.87% respectively. Across the full 17-year window we track, VUG has the edge at +15.14% annualized vs +0.68%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VUG has been the more volatile fund, with annualized monthly volatility of 16.8% 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 -35.6% for VUG. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.05. They move largely independently of each other.
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 3.82% against 0.38% for VUG.
Holdings Overlap
At least 0.1% of VUG's money is in holdings VGSH also owns.
Stated as a floor: for VGSH, our book for it covers 76.6% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 71 positions we hold weights for in VGSH and 147 in VUG, against full books of 94 and 146.
Top Shared Holdings
| Stock | Weight in VGSH | Weight in VUG | Difference |
|---|---|---|---|
| CURVVanguard Market Liquidity Fund | 0.40% | 0.15% | 0.25% |
You are not choosing between two funds in isolation.
Whichever of VGSH and VUG 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 VUG?
VGSH has an expense ratio of 0.03% while VUG charges 0.03%. At the precision these are quoted to, they cost the same.
Which performed better, VGSH or VUG?
Over the past year VGSH returned +1.50% vs +13.57% for VUG, so VUG leads on 1-year performance. Over the longest common window we track (17 years), VGSH annualized +0.68% vs +15.14% for VUG. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VGSH or VUG?
VUG has been the more volatile fund at 16.8% annualized versus 1.4% for VGSH. Worst drawdown: VGSH -6.7% vs VUG -35.6%.
Should I hold both VGSH and VUG?
VGSH and VUG have a monthly-return correlation of 0.05, 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 VUG?
VGSH yields 3.82% while VUG yields 0.38%, so VGSH currently pays the higher dividend yield.
Is VUG better than VGSH?
VUG led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.