VGSH vs VWO
Vanguard Short Term Treasury ETF vs Vanguard FTSE Emerging Markets ETF
Which is better, VGSH or VWO?
Short Term Government Bond against Large Cap Blend.
VGSH has a lower expense ratio. VWO 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 | VWO |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.06% |
| AUM | $34.7B | $122.0B |
| Dividend Yield | 3.82% | 2.29% |
| Holdings | 94 | 6,334 |
| YTD Return | +0.63% | +10.00%Best |
| 1Y Return | +1.81% | +15.58%Best |
| 3Y Return (annualized) | +4.15% | +17.69%Best |
| 5Y Return (annualized) | +1.85% | +6.01%Best |
| Volatility (annualized) | 1.4%Best | 17.2% |
| Max Drawdown | -6.7%Best | -43.7% |
| $10,000 over 5 years | $10,960 | $13,389Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Short Term Government Bond | Large Cap Blend |
| Inception | Nov 19, 2009 | Mar 4, 2005 |
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 11, 2026 (16.8 years).
VGSH vs VWO 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 covers the 16.8 years both funds cover.
VGSH vs VWO Performance
Vanguard Short Term Treasury ETF (VGSH) is an ETF from Vanguard (US) and Vanguard FTSE Emerging Markets ETF (VWO) is an ETF from Vanguard (US). Over the past year VGSH returned +1.81% while VWO returned +15.58%. Year to date, VGSH is up 0.63% versus a gain of 10.00% for VWO.
Over three years, VGSH compounded at +4.15% per year against +17.69% for VWO; over five years the annualized figures are +1.85% and +6.01% respectively. Across the full 17-year window we track, VWO has the edge at +3.29% annualized vs +0.70%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VWO has been the more volatile fund, with annualized monthly volatility of 17.2% 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 -43.7% for VWO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.08. They move largely independently of each other.
Fees and Cost Over Time
VGSH charges 0.03% per year while VWO charges 0.06%. On a $10,000 position that is $3 vs $6 annually, a gap of $3 per year that compounds over a long holding period. On income, VGSH currently yields 3.82% against 2.29% for VWO.
Holdings Overlap
We hold position weights for 16 holdings in VGSH and 4,694 in VWO, totalling 15.5% and 88.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 16 positions we hold weights for in VGSH and 4,694 in VWO, against full books of 94 and 6,334.
You are not choosing between two funds in isolation.
Whichever of VGSH and VWO 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 VWO?
VGSH has an expense ratio of 0.03% while VWO charges 0.06%. VGSH is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, VGSH or VWO?
Over the past year VGSH returned +1.81% vs +15.58% for VWO, so VWO leads on 1-year performance. Over the longest common window we track (17 years), VGSH annualized +0.70% vs +3.29% for VWO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VGSH or VWO?
VWO has been the more volatile fund at 17.2% annualized versus 1.4% for VGSH. Worst drawdown: VGSH -6.7% vs VWO -43.7%.
Should I hold both VGSH and VWO?
VGSH and VWO have a monthly-return correlation of 0.08, 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 VWO?
VGSH yields 3.82% while VWO yields 2.29%, so VGSH currently pays the higher dividend yield.
Is VWO better than VGSH?
VGSH has a lower expense ratio. VWO 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.