VGSH vs VNQ
Vanguard Short Term Treasury ETF vs Vanguard Real Estate ETF
Which is better, VGSH or VNQ?
Short Term Government Bond against Mid Cap Blend.
VGSH has a lower expense ratio. VGSH led over 5Y, VNQ over 1Y, 3Y 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 | VNQ |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.13% |
| AUM | $35.1B | $35.9B |
| Dividend Yield | 3.80% | 3.80% |
| Holdings | 92 | 144 |
| YTD Return | +0.73% | +4.97%Best |
| 1Y Return | +1.49% | +4.65%Best |
| 3Y Return (annualized) | +4.11% | +10.00%Best |
| 5Y Return (annualized) | +1.92%Best | +0.61% |
| Volatility (annualized) | 1.4%Best | 17.2% |
| Max Drawdown | -6.7%Best | -42.8% |
| $10,000 over 5 years | $10,998Best | $10,309 |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Short Term Government Bond | Mid Cap Blend |
| Inception | Nov 19, 2009 | Sep 23, 2004 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 23, 2009 to Oct 14, 2026 (16.9 years).
VGSH vs VNQ 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
VGSH vs VNQ Performance
Vanguard Short Term Treasury ETF (VGSH) is an ETF from Vanguard (US) and Vanguard Real Estate ETF (VNQ) is an ETF from Vanguard (US). Over the past year VGSH returned +1.49% while VNQ returned +4.65%. Year to date, VGSH is up 0.73% versus a gain of 4.97% for VNQ.
Over three years, VGSH compounded at +4.11% per year against +10.00% for VNQ; over five years the annualized figures are +1.92% and +0.61% respectively. Across the full 17-year window we track, VNQ has the edge at +5.92% annualized vs +0.70%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VNQ 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 -42.8% for VNQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.17. They move largely independently of each other.
Fees and Cost Over Time
VGSH charges 0.03% per year while VNQ charges 0.13%. On a $10,000 position that is $3 vs $13 annually, a gap of $10 per year that compounds over a long holding period. On income, VGSH currently yields 3.80% against 3.80% for VNQ.
Holdings Overlap
At least 0.2% of VNQ's money is in holdings VGSH also owns.
Stated as a floor: for VGSH, our book for it covers 74.0% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 71 positions we hold weights for in VGSH and 140 in VNQ, against full books of 92 and 144.
What only one of them owns
Measured across the 71 and 140 positions we hold weights for.
VGSH holds 69 positions VNQ does not, 73.6% of the fund.
Largest: T 3.5 01/31/28 2.05%, T 4.625 04/30/29 1.43%, T 4 07/31/29 1.39%, T 3.875 07/15/28 1.36%, T 4.25 06/30/29 1.35%
Top Shared Holdings
| Stock | Weight in VGSH | Weight in VNQ | Difference |
|---|---|---|---|
| MKLMarkel Group Inc | 0.42% | 0.17% | 0.25% |
You are not choosing between two funds in isolation.
Whichever of VGSH and VNQ 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 VNQ?
VGSH has an expense ratio of 0.03% while VNQ charges 0.13%. VGSH is the cheaper option, by $10 a year on a $10,000 investment.
Which performed better, VGSH or VNQ?
Over the past year VGSH returned +1.49% vs +4.65% for VNQ, so VNQ leads on 1-year performance. Over the longest common window we track (17 years), VGSH annualized +0.70% vs +5.92% for VNQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VGSH or VNQ?
VNQ has been the more volatile fund at 17.2% annualized versus 1.4% for VGSH. Worst drawdown: VGSH -6.7% vs VNQ -42.8%.
Should I hold both VGSH and VNQ?
VGSH and VNQ have a monthly-return correlation of 0.17, 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 VNQ?
VGSH yields 3.80% while VNQ yields 3.80%, so VNQ currently pays the higher dividend yield.
Is VNQ better than VGSH?
VGSH has a lower expense ratio. VGSH led over 5Y, VNQ over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.