VGSH alternatives and similar ETFs

VGSH alternatives at a glance#

Each fund below can stand in for VGSH, closest first. “Same kind” funds hold the same kind of bonds through a different index. “Related” funds make a different bet that often moves the same way.

Fees come from each fund company, checked on the dates shown on each fund’s page.

How VGSH and its alternatives did over the same dates#

Each row measures the alternative and VGSH on the days both traded, so neither gets a head start. Correlation shows how closely their daily moves matched over about the last five years. A value of 1 means they always moved together.

Prices through October 16, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.

Each VGSH alternative, compared#

SHY: iShares 1-3 Year Treasury Bond ETF#

SHY also holds US government bonds that pay back in 1 to 3 years. It tracks the ICE U.S. Treasury 1-3 Year Bond Index, while VGSH tracks the Bloomberg US Treasury 1-3 Year Bond Index.

It charges 0.15% a year, about $15 on $10,000, against $3 for VGSH. It held 90 holdings, against 92 for VGSH.

From November 2009 to October 2026, SHY returned about 1.3% a year and VGSH returned about 1.4% a year. Over about the last five years they moved almost exactly together (correlation 0.98).

Read the SHY fund page for its returns by year and worst drop.

VGIT: Vanguard Intermediate-Term Treasury ETF#

VGIT is a looser match. It holds US government bonds that pay back in about 3 to 10 years, while VGSH holds US government bonds that pay back in 1 to 3 years.

It charges 0.03% a year, about $3 on $10,000, against $3 for VGSH. It held 102 holdings, against 92 for VGSH.

From November 2009 to October 2026, VGIT returned about 2.0% a year and VGSH returned about 1.4% a year. Over about the last five years they moved together on most days (correlation 0.91).

Read the VGIT fund page for its returns by year and worst drop.

IEF: iShares 7-10 Year Treasury Bond ETF#

IEF is a looser match. It holds US government bonds that pay back in about 3 to 10 years, while VGSH holds US government bonds that pay back in 1 to 3 years.

It charges 0.15% a year, about $15 on $10,000, against $3 for VGSH. It held 17 holdings, against 92 for VGSH.

From November 2009 to October 2026, IEF returned about 2.2% a year and VGSH returned about 1.4% a year. Over about the last five years they often moved together, but not always (correlation 0.84).

Read the IEF fund page for its returns by year and worst drop.

SHV: iShares 0-1 Year Treasury Bond ETF#

SHV is a looser match. It holds US government bills and notes that pay back within months, so the price barely moves, while VGSH holds US government bonds that pay back in 1 to 3 years.

It charges 0.15% a year, about $15 on $10,000, against $3 for VGSH. It held 19 holdings, against 92 for VGSH.

From November 2009 to October 2026, SHV returned about 1.4% a year and VGSH returned about 1.4% a year. Over about the last five years they often moved in different ways (correlation 0.53).

Read the SHV fund page for its returns by year and worst drop.

BIL: State Street SPDR Bloomberg 1-3 Month T-Bill ETF#

BIL is a looser match. It holds US government bills and notes that pay back within months, so the price barely moves, while VGSH holds US government bonds that pay back in 1 to 3 years.

It charges 0.1353% a year, about $13.53 on $10,000, against $3 for VGSH. It held 34 holdings, against 92 for VGSH.

From November 2009 to October 2026, BIL returned about 1.4% a year and VGSH returned about 1.4% a year. Over about the last five years they often moved in different ways (correlation 0.14).

Read the BIL fund page for its returns by year and worst drop.

SGOV: iShares 0-3 Month Treasury Bond ETF#

SGOV is a looser match. It holds US government bills and notes that pay back within months, so the price barely moves, while VGSH holds US government bonds that pay back in 1 to 3 years.

It charges 0.09% a year, about $9 on $10,000, against $3 for VGSH.

From June 2020 to October 2026, SGOV returned about 3.0% a year and VGSH returned about 1.5% a year. Over about the last five years they often moved in different ways (correlation 0.13).

Read the SGOV fund page for its returns by year and worst drop.

TFLO: iShares Treasury Floating Rate Bond ETF#

TFLO is a looser match. It holds US government bills and notes that pay back within months, so the price barely moves, while VGSH holds US government bonds that pay back in 1 to 3 years.

It charges 0.15% a year, about $15 on $10,000, against $3 for VGSH. It held 8 holdings, against 92 for VGSH.

From February 2014 to October 2026, TFLO returned about 2.0% a year and VGSH returned about 1.5% a year. Over about the last five years they often moved in different ways (correlation 0.05).

Read the TFLO fund page for its returns by year and worst drop.

USFR: WisdomTree Floating Rate Treasury Fund#

USFR is a looser match. It holds US government bills and notes that pay back within months, so the price barely moves, while VGSH holds US government bonds that pay back in 1 to 3 years.

It charges 0.15% a year, about $15 on $10,000, against $3 for VGSH. It held 5 holdings, against 92 for VGSH.

From February 2014 to October 2026, USFR returned about 2.0% a year and VGSH returned about 1.5% a year. Over about the last five years they often moved in different ways (correlation 0.02).

Read the USFR fund page for its returns by year and worst drop.

VGSH versions from other fund companies#

Some people keep all their funds with one company. Here is the closest fund to VGSH from each other company on this page:

• iShares (BlackRock): SHY, iShares 1-3 Year Treasury Bond ETF (same kind of fund, 0.15% a year)
• SPDR (State Street): BIL, State Street SPDR Bloomberg 1-3 Month T-Bill ETF (related fund, 0.1353% a year)
• WisdomTree: USFR, WisdomTree Floating Rate Treasury Fund (related fund, 0.15% a year)

Most brokers let you buy any ETF, whoever runs it. Mutual fund versions, such as a fund company’s index mutual fund, are not listed here.

How to choose between VGSH and its alternatives#

• What it tracks. A fund on the same index holds the same bonds. A different index can mean different weights, more or fewer holdings, or a different mix.
• The fee. The difference is often small. On $10,000, VGSH costs about $3 a year.
• History. An older fund has been through more bad markets, so you can see how far it fell.
• What you already own. Two funds that move together add little variety. A fund with a low correlation behaves more on its own.

Swapping VGSH to harvest a tax loss#

Some investors sell a fund at a loss to lower their taxes, then buy a similar fund so they stay invested. This is called tax-loss harvesting.

The IRS wash sale rule blocks the loss if you buy a “substantially identical” security within 30 days before or after the sale. The IRS has not said exactly when two funds count. Funds on the same index are more likely to. Funds on a different index, such as SHY, VGIT or IEF, are less likely to.

Ask a tax professional before you rely on this. Read the IRS rules in Publication 550.

Test VGSH and its alternatives in a backtest#

Tactfolio is a platform where you build rules-based investing strategies, backtest them on decades of real prices, share them, and run them automatically in your own Alpaca account. Open the builder, add VGSH and SHY, and see how each would have done on the same dates, or how a mix of both would have done.

The details#

Alternatives are picked from facts, not from returns. First come funds that track the same index as VGSH. Then come funds that hold the same kind of bonds through another index. Last come funds from a close category that make a different bet. Leveraged funds are only listed as alternatives to other leveraged funds.

Within each group, the funds whose daily returns moved most like VGSH over about the last five years come first. Returns and worst drops use Tactfolio’s stored daily prices, adjusted for splits, with dividends reinvested. Each alternative is measured with VGSH only on days both traded. Read what a backtest simulates for more on these measures.