VGSH — Vanguard Short-Term Treasury Index Fund ETF Shares

VGSH Price Performance — Growth of $10,000

Value of a $10,000 investment in VGSH over time, compared with SPY. Both lines are rebased to $10,000 on the first shared date. Based on total returns — prices are adjusted for dividends and splits, so this assumes distributions were reinvested. Hover or tap the chart for exact values.

VGSH Drawdown

The "underwater" chart: VGSH's decline from its highest prior value at each point in time. It shows how deep past losses ran and how long the fund took to recover to break-even.

Overview

The Vanguard Short-Term Treasury Index Fund ETF Shares (VGSH) operates within the US Bonds - Government category, which ETFValuer tracks across 22 funds. Issued by Vanguard, this ETF holds an overall rank of #301 out of 458 tracked funds across all categories and carries an ETFValuer grade of C with a score of 56.9 out of 100. The fund trades at a price of $58.02 and manages $33.8 billion in assets, indicating significant investor adoption relative to its category peers. It offers a low-cost structure with an expense ratio of 0.03% while providing a dividend yield of 3.87%. The substantial asset base suggests strong market presence despite the moderate overall ranking. This combination of low fees and high yield positions the fund as a cost-effective income vehicle within its specific sector. The price and asset size reflect its status as a widely held instrument in the short-term treasury space.

Over the most recent trading day, the fund posted a return of +0.07%, followed by a weekly decline of -0.19%. Monthly performance showed a slight recovery with a +0.03% gain, while the three-month horizon expanded to a +0.14% return. The six-month period demonstrated further acceleration to +0.65%, contributing to a year-to-date gain of +0.60%. Annual returns reached +2.91%, and the three-year total return stands at +13.22%. This trajectory indicates a pattern where short-term fluctuations have given way to more consistent positive accumulation over longer horizons. The data shows a divergence between the modest weekly dip and the stronger multi-year growth figures.

VGSH carries a volatility label of Very Low and a beta of 0.23, suggesting minimal sensitivity to broader market movements. Despite this low volatility, the fund recorded a Sharpe ratio of -1.58, indicating that returns have not adequately compensated for the risk taken over the measured period. The maximum drawdown was limited to -0.97%, reflecting the fund's ability to preserve capital during market stress. This combination of a very low beta and small drawdown points to stability in down markets, even as the negative Sharpe ratio highlights challenges in generating excess returns relative to risk. The fund appears designed to minimize price swings while delivering steady, albeit modest, income and growth over time.

AI-generated summary based on the data on this page.

VGSH Top Holdings

Holdings as of 2026-02-28 per the fund's most recent SEC N-PORT-P filing. Top 10 holdings make up 13.8% of net assets — a rough gauge of concentration risk (the higher this figure, the more the fund's return depends on a handful of names). To see how VGSH's holdings overlap with other ETFs you own or are considering, check the Stock Overlap tool.

Which Funds Overlap With VGSH

Holding two funds that own the same companies adds cost and complexity without adding much diversification. These tracked ETFs share the most names with VGSH's top 10 — VCSH overlaps most, holding 1 of the same companies as VGSH's top 10 (13.8% of VGSH's assets).

Compares the top 10 reported holdings of each fund, so it's a floor on true overlap — two S&P 500 trackers overlap ~100% even when only 10 names are listed. Use the Stock Overlap tool to search by individual company.

Market Backdrop

10-Year Treasury Yield: 4.71% (as of 2026-07-23) — The yield on 10-year US Treasury bonds — the standard "risk-free rate" benchmark used to contextualize this fund’s Sharpe ratio and returns.

CBOE Volatility Index (VIX): 18.70 (as of 2026-07-23) — A real-time gauge of expected S&P 500 volatility over the next 30 days — useful context for this fund’s own volatility label.

Federal Funds Rate: 3.63% (as of 2026-06-01) — The Federal Reserve’s target policy rate, which anchors short-term borrowing costs across the economy.

VGSH Liquidity, Domicile & Tax Treatment

Liquidity: Quoted bid/ask spread is 0.03% and average daily volume is 3.4M/day. Tighter spreads and higher volume mean lower round-trip trading costs; this is a live-market snapshot and can widen during volatile sessions. AUM of $33.8B provides ample scale, supporting tight spreads and issuer commitment to keep the fund open.

Domicile & tax treatment: VGSH is a US-domiciled, SEC-registered ('40 Act) exchange-traded fund. Dividends and capital gains distributions are reported to US investors on Form 1099-DIV, and the fund is not subject to the PFIC reporting or UCITS-specific rules that apply to Irish- or Luxembourg-domiciled funds. Non-US investors should note that US-domiciled ETFs are generally subject to 30% US withholding tax on dividends (unless reduced by treaty) and to US estate tax exposure on the position — Irish-domiciled UCITS ETFs tracking the same index often avoid both, which is why non-US residents frequently prefer the UCITS equivalent where one exists. This is general information, not tax advice — consult a tax professional for your situation.

VGSH Performance History

How VGSH Compares to Other US Bonds - Government ETFs