VGSH: Vanguard Short-Term Treasury ETF returns, drawdowns and risk
Funds on US government bonds, from a few months to 30 years. The longer the maturity, the larger the moves when interest rates change.
Data updated October 2026
VGSH · US exchange · USDCategory: US Treasury bond ETFsData from November 2009
From November 2009 to October 2026 VGSH returned 1.4% a year on average with dividends reinvested, in US dollars: $10,000 invested at the start grew to $12,641.
Its deepest fall was 5.7%, from April 2021 to October 2022, and it took about 37 months to get back to the previous high. Annual volatility was 1.4%; at the last close it was at or near its high.
Against AGG (iShares Core U.S. Aggregate Bond ETF), over the 203 months both have data, the correlation of monthly returns was 0.76: they usually moved together. Beta was 0.25. In months when AGG rose, VGSH moved 30% as much on average; in months when AGG fell, 14% as much.
Key figures
- Annual return (CAGR)
- +1.4%
- 1-year return
- +1.5%
- 5 years, a year
- +2.0%
- 10 years, a year
- +1.8%
- Annual volatility
- 1.4%
- Maximum drawdown
- −5.7%
- Sharpe ratio
- 0.02
- Worst year
- 2022: −3.9%
Trailing returns
| Period | VGSH | AGG |
|---|---|---|
| 1 year | +1.5% | −1.9% |
| 3 years, a year | +4.1% | +5.2% |
| 5 years, a year | +2.0% | −0.3% |
| 10 years, a year | +1.8% | +1.2% |
To the last close of October 2026. Periods longer than a year are annualised.
Growth of $10,000: VGSH vs AGG
Month-end values from December 2009, the first month both funds have data.
VGSH drawdowns
Percentage below the previous high, weekly.
Returns by calendar year
| Year | VGSH | AGG |
|---|---|---|
| 2026(partial) | +0.9% | −1.8% |
| 2025 | +5.1% | +7.2% |
| 2024 | +4.0% | +1.3% |
| 2023 | +4.3% | +5.7% |
| 2022 | −3.9% | −13.0% |
| 2021 | −0.6% | −1.8% |
| 2020 | +3.0% | +7.5% |
| 2019 | +3.5% | +8.5% |
| 2018 | +1.6% | +0.1% |
| 2017 | +0.0% | +3.5% |
| 2016 | +1.1% | +2.4% |
| 2015 | +0.5% | +0.5% |
| 2014 | +0.5% | +6.0% |
| 2013 | +0.3% | −2.0% |
| 2012 | +0.4% | +3.8% |
| 2011 | +1.5% | +7.7% |
| 2010 | +2.3% | +6.4% |
| 2009(partial) | −0.5% | — |
How the figures are calculated
Total return in the fund’s trading currency, from end-of-day prices with dividends reinvested on the ex-date. The fund’s own ongoing charges are already reflected in its price; trading costs, taxes and currency conversion are not included. Past returns do not predict future returns.
Sharpe ratio uses the return of short-term government bills in the same currency as the risk-free rate. The growth chart uses month-end values; drawdowns and volatility use daily closes.
Questions
What is the average annual return of VGSH?
From November 2009 to October 2026 VGSH returned 1.4% a year on average (CAGR) with dividends reinvested, in USD. Over the last 5 years: +2.0% a year. Over the last 12 months: +1.5%.
What was the worst drawdown of VGSH?
5.7%, from April 2021 to October 2022; it took about 37 months from the previous high to get back to it.
How volatile is VGSH?
Annual volatility was 1.4% over the period. Its worst month was −1.4% and 62% of months were positive. Worst calendar year: 2022 (−3.9%).
How closely does VGSH follow AGG?
Over 203 months the correlation of monthly returns was 0.76, so they usually moved together, with a beta of 0.25.
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Other US Treasury bond ETFs
- All US Treasury bond ETFsReturns and risk side by side
- TLT — iShares 20+ Year Treasury Bond ETFCAGR +2.7%
- IEF — iShares 7-10 Year Treasury Bond ETFCAGR +3.1%
- SHY — iShares 1-3 Year Treasury Bond ETFCAGR +1.9%
- GOVT — iShares U.S. Treasury Bond ETFCAGR +1.0%
- VGLT — Vanguard Long-Term Treasury ETFCAGR +2.5%
- EDV — Vanguard Extended Duration Treasury ETFCAGR +2.3%
- IEI — iShares 3-7 Year Treasury Bond ETFCAGR +2.7%
- VGIT — Vanguard Intermediate-Term Treasury ETFCAGR +2.0%
Source: MarketStack end-of-day prices, total return with dividends reinvested. Figures are historical and descriptive; they are not forecasts and not investment advice. MEDGE Capital does not recommend buying or selling any instrument. Risk disclaimer.