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 with 22 total funds. Issued by Vanguard, this fund has accumulated assets under management of $33.8 billion and trades at a price of $58.08. It holds an overall rank of #304 out of 458 tracked ETFs across all categories and has received an ETFValuer grade of C with a score of 56.6 out of 100. The fund maintains a low cost structure with an expense ratio of 0.03% while offering a dividend yield of 3.87%. The substantial asset size and low expense ratio suggest significant investor adoption relative to the fund's cost profile. Despite its high ranking in terms of assets, its overall performance rank places it in the lower half of the broader ETF universe.

Short-term returns for VGSH show modest gains, with a 1-day return of +0.10% and a 1-week return of +0.05%. The 1-month return of +0.01% indicates a period of near stagnation before the fund posted a 3-month return of +0.14%. Performance accelerated over the half-year period to +0.67%, contributing to a year-to-date return of +0.71%. Over the longer term, the fund delivered a 1-year return of +3.04% and a 3-year return of +13.35%. This trajectory demonstrates a divergence where short-term fluctuations were minimal compared to the more pronounced gains observed over the 1-year and 3-year horizons.

VGSH carries a volatility label of Very Low and exhibits a beta of 0.23, indicating limited sensitivity to broader market movements. The fund experienced a maximum drawdown of -0.97%, reflecting a relatively contained decline during its worst period. However, the Sharpe ratio of -1.48 suggests that the risk-adjusted returns have been negative over the measured timeframe. This combination of low volatility and a negative Sharpe ratio implies that while the fund has preserved capital during downturns, the returns generated have not adequately compensated for the risk taken. The low beta and small drawdown confirm the fund's behavior as a defensive asset with minimal price swings.

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: 4.65% (as of 2026-07-27) — 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): 18.67 (as of 2026-07-27) — 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