# VGSH ETF: fees, returns, drawdowns and holdings

> What VGSH holds, its 0.03% yearly fee, returns by year, its worst drop, and which Tactfolio strategies hold it. Updated daily.

Vanguard Short-Term Treasury ETF (VGSH) is an exchange-traded fund (ETF) run by Vanguard. This fund owns about 90 US Treasury bonds that are paid back in 1 to 3 years. It charges 0.03% a year. From November 2009 to October 2026 it returned about 1.4% a year, and its worst drop was −5.7%.

Written by [the Tactfolio research team](https://tactfolio.com/about/editorial-policy). Fund facts checked October 17, 2026. Prices through October 16, 2026.

## Key points

- Expense ratio: 0.03% a year (about $3 on $10,000).
- Started trading on November 19, 2009.
- Worst drop since 2009: −5.7%.
- No Tactfolio classic strategies hold it.

## What does VGSH hold?

This fund owns about 90 US Treasury bonds that are paid back in 1 to 3 years. Treasury bonds are loans to the US government. Because the bonds are short, their prices usually move less when interest rates change.

It tracks the Bloomberg US Treasury 1-3 Year Bond Index. It had 92 holdings as of September 30, 2026, according to Vanguard.

| Fact | VGSH |
| --- | --- |
| Full name | Vanguard Short-Term Treasury ETF |
| Issuer | Vanguard |
| Expense ratio | 0.03% a year |
| Started trading | November 19, 2009 |
| Tracks | Bloomberg US Treasury 1-3 Year Bond Index |
| Type | US bonds, ETF |
| Holdings | 92 holdings as of September 30, 2026 |
| Facts checked | October 17, 2026 on the [Vanguard fund page](https://investor.vanguard.com/investment-products/etfs/profile/vgsh) |

## What is the VGSH expense ratio?

VGSH charges 0.03% a year. An expense ratio is the yearly fee a fund takes to run itself. On $10,000, a 0.03% fee comes to about $3 a year.

You never get a bill for it. The fund takes the fee out of its own value a little each day.

## How has VGSH done since 2009?

From November 2009 to October 2026, VGSH returned about 1.4% a year. Say you put in $10,000 at the start. It would have been worth about $12,646 at the end, with every dividend reinvested.

| Measure | VGSH |
| --- | --- |
| Total return | 26.5% |
| Return per year (CAGR) | 1.4% |
| Worst drop from a high | −5.7% |
| Volatility (how much it swings) | 1.4% |
| Last 12 months | 1.6% |
| Last 3 years, per year | 4.2% |
| Last 5 years, per year | 2.0% |
| Last 10 years, per year | 1.8% |

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.

## VGSH returns by year

| Year | VGSH return |
| --- | --- |
| 2026 (part of the year) | 1.0% |
| 2025 | 5.1% |
| 2024 | 4.0% |
| 2023 | 4.3% |
| 2022 | −3.9% |
| 2021 | −0.6% |
| 2020 | 3.0% |
| 2019 | 3.5% |
| 2018 | 1.6% |
| 2017 | 0.0% |
| 2016 | 1.1% |
| 2015 | 0.4% |
| 2014 | 0.5% |
| 2013 | 0.3% |
| 2012 | 0.4% |
| 2011 | 1.5% |
| 2010 | 2.3% |
| 2009 (part of the year) | −0.5% |

## What was VGSH's worst drop?

A drawdown is how far a fund falls from its last high point. VGSH's worst fall was −5.7%, from April 20, 2021 to October 20, 2022. It got back to that high on May 15, 2024.

The chart shows how far below its last high the fund was on each day. Big drops are normal for some funds. They matter because selling during a drop locks in the loss.

## Which Tactfolio strategies hold VGSH?

No classic strategy holds VGSH yet. You can add it to your own rules in the [builder](https://tactfolio.com/builder) and see how they would have done.

## How does VGSH compare with similar ETFs?

Funds that can stand in for VGSH:

- [SHY](https://tactfolio.com/etf/shy.md): iShares 1-3 Year Treasury Bond ETF, 0.15% a year
- [SGOV](https://tactfolio.com/etf/sgov.md): iShares 0-3 Month Treasury Bond ETF, 0.09% a year
- [BIL](https://tactfolio.com/etf/bil.md): State Street SPDR Bloomberg 1-3 Month T-Bill ETF, 0.1353% a year
- [SHV](https://tactfolio.com/etf/shv.md): iShares 0-1 Year Treasury Bond ETF, 0.15% a year

See [all 8 VGSH alternatives](https://tactfolio.com/alternatives/vgsh.md), compared on the same dates as VGSH.

## Test VGSH in your own rules

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](https://tactfolio.com/builder), add VGSH, and see how a rule such as "hold it only above its 200-day average" would have done. Strategies run on daily prices and hold US stocks and ETFs only.

## The details

Prices come from Tactfolio's stored daily prices for VGSH. Each close is adjusted for splits, and dividends are reinvested on the day the fund pays them out. CAGR is the steady yearly return that turns the starting value into the ending value. Volatility is the yearly standard deviation of daily returns.

Fund facts come from Vanguard. We checked them on October 17, 2026. Read [what a backtest simulates](https://tactfolio.com/docs/backtests.md) and [how to read drawdown and CAGR](https://tactfolio.com/docs/concepts/reading-a-backtest.md) for more on these measures.

## Research and test it

- [Portfolio rebalancing](https://tactfolio.com/learn/portfolio-rebalancing): What portfolio rebalancing is, why a 60/40 mix drifts, calendar vs threshold methods, and how taxes and costs fit in.
- [Risk parity](https://tactfolio.com/learn/risk-parity): Risk parity balances risk instead of dollars. See a simple stock and bond example, why funds use leverage, and what went wrong in 2022.
- [ETF screener](https://tactfolio.com/screener.md): A free ETF screener for 162 US-listed funds. Filter by type, issuer and fee, sort by returns or worst drop, and compare funds side by side.
- [ETF expense ratio](https://tactfolio.com/learn/etf-expense-ratio): What an ETF expense ratio is, how the fund charges it, and how 0.03% vs 1% adds up over 10 and 30 years, with real fund examples.
- [Backtest a portfolio](https://tactfolio.com/trading-tools/backtest-portfolio): Backtest a portfolio of US stocks and ETFs. Enter tickers and shares, pick when to rebalance, and get the results with a link to share.
- [Backtesting](https://tactfolio.com/backtesting): Free backtesting software for stocks, ETFs, and crypto perps.

## Common questions

### What is the expense ratio of VGSH?

VGSH charges 0.03% a year, according to Vanguard as of October 17, 2026. That is about $3 a year for every $10,000 you hold.

### When did VGSH start trading?

VGSH started trading on November 19, 2009. It is run by Vanguard.

### What does VGSH track?

VGSH tracks the Bloomberg US Treasury 1-3 Year Bond Index. This fund owns about 90 US Treasury bonds that are paid back in 1 to 3 years.

### How much has VGSH returned per year?

From November 2009 to October 2026, VGSH returned about 1.4% a year with dividends reinvested. Its worst drop was −5.7%. Past returns do not tell you what it will do next.

### Which strategies use VGSH?

None of Tactfolio's classic strategies hold VGSH yet. You can test it in your own rules in the builder.

## Sources

- [Vanguard: Vanguard Short-Term Treasury ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/vgsh)

> Not financial advice. Tactfolio is a research and automation tool. It is not a broker or a financial adviser. This page is for education only. Backtests are hypothetical. They show how rules would have done on past prices, not how they will do. All investing involves risk, including losing the money you put in.