VGSH vs VXF
Vanguard Short Term Treasury ETF vs Vanguard Extended Market ETF
Quick Verdict
VGSH has a lower expense ratio. VXF delivered stronger 1-year returns. VXF offers more diversification with 3,376 holdings.
Side-by-Side Comparison
| Metric | VGSH | VXF | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.05% | |
| AUM | $34.7B | $30.5B | |
| Dividend Yield | 3.85% | 1.03% | |
| Holdings | 94 | 3,376 | |
| YTD Return | +1.13% | +15.71% | |
| 1Y Return | +2.90% | +23.93% | |
| 3Y Return (annualized) | +4.38% | +19.90% | |
| 5Y Return (annualized) | +1.96% | +7.18% | |
| Volatility (annualized) | 1.4% | 18.7% | |
| Max Drawdown | -6.7% | -59.4% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 19, 2009 | Dec 27, 2001 |
VGSH vs VXF Performance
Vanguard Short Term Treasury ETF (VGSH) is a ETF from Vanguard (US) and Vanguard Extended Market ETF (VXF) is a ETF from Vanguard (US). Over the past year VGSH returned +2.90% while VXF returned +23.93%. Year to date, VGSH is up 1.13% versus a gain of 15.71% for VXF.
Over three years, VGSH compounded at +4.38% per year against +19.90% for VXF; over five years the annualized figures are +1.96% and +7.18% respectively. Across the full 17-year window we track, VXF has the edge at +9.01% annualized vs +0.73%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXF has been the more volatile fund, with annualized monthly volatility of 18.7% 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 -59.4% for VXF. 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 VXF charges 0.05%. On a $10,000 position that is $3 vs $5 annually, a gap of $2 per year that compounds over a long holding period. On income, VGSH currently yields 3.85% against 1.03% for VXF.
Holdings Overlap
VGSH and VXF share 0 holdings out of 3310 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 VXF?
VGSH has an expense ratio of 0.03% while VXF charges 0.05%. VGSH is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, VGSH or VXF?
Over the past year VGSH returned +2.90% vs +23.93% for VXF, so VXF leads on 1-year performance. Over the longest common window we track (17 years), VGSH annualized +0.73% vs +9.01% for VXF. Past performance does not guarantee future results.
Which is riskier, VGSH or VXF?
VXF has been the more volatile fund at 18.7% annualized versus 1.4% for VGSH. Worst drawdown: VGSH -6.7% vs VXF -59.4%.
Should I hold both VGSH and VXF?
VGSH and VXF 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 VXF?
VGSH and VXF share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3310 unique securities.
Which pays a higher dividend, VGSH or VXF?
VGSH yields 3.85% while VXF yields 1.03%, so VGSH currently pays the higher dividend yield.
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