# How Vanguard Intermediate-Term Treasury ETF (VGIT) compares with the whole market and its popular alternatives

> Source: EasyCompare research, https://easycompare.io/research/vgit
> Data as of October 20, 2026. Total returns include reinvested dividends. Past performance does not predict future results; nothing here is investment advice.

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on VGIT alone. It places VGIT (Vanguard Intermediate-Term Treasury ETF) against 20+ popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where VGIT stands in the market, and of the alternatives worth a closer look.

Period covered: VGIT's full trading record, from November 2009 through September 2026. The crash tests reach back to 2000 using older funds and the S&P 500. All returns include reinvested dividends. Data as of October 20, 2026.

## Key findings

- **What you're buying:** A correlation of 0.96 with AGG (iShares Core U.S. Aggregate Bond ETF) over 5 years: effectively the same bet as the larger fund.
- **Right now:** VGIT has gone against the market, falling 2.9% over the past 6 months while the S&P 500 rose 9.1%. Even so, both VGIT and the S&P 500 are within a few percent of a record high.
- **Fund or market?:** VGIT fell 2.0% over the past 3 months, in line with the treasury bonds ETF IEF (iShares 7-10 Year Treasury Bond ETF), which fell 2.8%. The S&P 500 rose 3.9%.
- **Long term:** Over the past decade, VGIT returned 1.0% a year against 15.5% a year for the S&P 500 (10.5% in total against 321%). VGIT's 10-year return of 10.5% puts it behind 95% of the ETFs with at least $100 million in assets with that much history. The S&P 500 returned 321%.
- **In a crash:** Across five sell-offs, VGIT has typically lost about 17% as much as the S&P 500. In the 2022 bear market, VGIT fell 11.8%, against 24.5% for the S&P 500, and less than similar funds such as BND (Vanguard Total Bond Market ETF, 14.6%).
- **Diversification:** VGIT is some diversification, but not a hedge: a correlation of 0.48 with the S&P 500 over 5 years and 0.49 with the total US market, less closely than 88% of ETFs with at least $100 million in assets. VGIT now moves more with the S&P 500: a correlation of 0.48 over the past 5 years, up from -0.38 in the 5 years before.
- **Better options**
  - **Popular alternatives:** SGOV (iShares 0-3 Month Treasury Bond ETF) and VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) earned more than VGIT with less volatility over the past 5 years. SGOV returned 3.8% a year at 0.3% volatility, against a loss of 0.1% a year at 5.4%.
  - **Nearby categories and themes:** NEAR (iShares Short Duration Bond Active ETF, short-term bonds) and LMBS (First Trust Low Duration Opportunities ETF, mortgage-backed securities) earned more than VGIT with less volatility over the past 5 years. NEAR returned 3.9% a year at 1.4% volatility, against a loss of 0.1% a year at 5.4%.
  - **Whole market:** 84 of the 3,633 stocks and funds worth at least $500 million earned more than VGIT with less volatility over the past 5 years, among them SGOV (iShares 0-3 Month Treasury Bond ETF), VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) and BSV (Vanguard Short-Term Bond ETF).

## How much would $10,000 in VGIT have grown?

This chart tracks a hypothetical $10,000 investment in VGIT over the past 16 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of VGIT over the same span and VGIT's popular alternatives, among those that traded for the entire period.

- $10,000 invested in VGIT at the end of September 2010 would have grown to $12,852 by September 2026, less than the $88,503 it would have become in SPY, an S&P 500 fund.
- Six of the eight other investments on the chart ended ahead of VGIT, and VCIT finished highest, at $17,051.

## VGIT at a glance

This section summarizes the key facts about the fund, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout.

- VGIT's deepest decline since it began trading in 2009 was 16.0%, from August 2020 to October 2022. It has not yet climbed back to that peak.
- Over 16 full calendar years, VGIT's best was 2011, when it returned 9.6%, and its worst was 2022, when it lost 10.4%. It lost money in three of those years.
- VGIT is 4.2% below its all-time high.

- Type: ETF, Bonds (Asset Management - Bonds)
- Trading since: November 23, 2009
- Assets: $48B
- Expense ratio: 0.03%
- Volatility (5 years): 5.4%; Sharpe ratio: 0.00
- Worst decline ever: −16.0%, from August 4, 2020 to October 20, 2022; not yet back at its high

| Period | VGIT total return |
| --- | --- |
| 1 month | −0.2% |
| 3 months | −2.0% |
| 6 months | −2.9% |
| year to date | −2.3% |
| 1 year | −2.3% |
| 3 years | +12.6% |
| 5 years | −0.7% |
| 10 years | +10.5% |

## VGIT against the whole market

Where VGIT ranks among every stock and fund, and what across the market has done better.

### How does VGIT rank among all ETFs?

This section ranks VGIT on return, volatility, risk-adjusted return and worst decline against every ETF worth at least $100 million with enough history.

- VGIT's worst decline of the past 10 years ranks in the top 7% of the 951 ETFs with at least $100 million in assets, where the top fell the least.
- VGIT's 10-year return ranks in the bottom 5% of the 958 ETFs with at least $100 million in assets with 10 years of history.

| Measure | VGIT | Rank |
| --- | --- | --- |
| 1-year return | −2.3% | 2,223 of 2,485 (top 90%) |
| 3-year return | +12.6% | 1,834 of 1,949 (top 95%) |
| 5-year return | −0.7% | 1,396 of 1,560 (top 90%) |
| 10-year return | +10.5% | 913 of 958 (top 96%) |
| Volatility, 5 years | 5.4% | 142 of 1,560 (top 10%) |
| Sharpe ratio, 5 years | 0.00 | 1,438 of 1,560 (top 93%) |
| Worst decline, past 10 years | −16.0% | 67 of 951 (top 8%) |

### What has beaten VGIT on both return and risk?

Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer).

- 84 ETFs worth at least $500 million sit in the green region: each earned more than VGIT over the past 5 years with smaller price swings. That is 2% of the 3,633 screened.
- Among those with at least half VGIT's swings, BALT has the best return for its risk: 6.3% a year at 3.3% volatility, 38% less than VGIT's 5.4%, and a Sharpe ratio (return above cash per unit of volatility) of 1.85 against 0.00 for VGIT.
- Among VGIT's popular alternatives, SGOV, VGSH and VTIP are in the region. SGOV earned 3.8% a year against a loss of 0.1% a year for VGIT, at 0.3% volatility, 95% less than VGIT's 5.4%.

### Is there a better investment than VGIT?

The table below lists investments that beat VGIT over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes, and, for funds, the same exposure at a lower expense ratio.

- Among VGIT's popular alternatives, SGOV and VTIP earned more than VGIT with less volatility over the past 5 years. SGOV returned 3.8% a year at 0.3% volatility, against a loss of 0.1% a year at 5.4%.
- Looking beyond its popular alternatives, NEAR (short-term bonds) and LMBS (mortgage-backed securities) earned more than VGIT with less volatility over the past 5 years. NEAR returned 3.9% a year at 1.4% volatility, against a loss of 0.1% a year at 5.4%.
- Across the whole market, 84 of the 3,633 stocks and funds worth at least $500 million earned more than VGIT with less volatility over the past 5 years, among them SGOV, VTIP and BSV.

The 15 strongest of 84 investments that beat VGIT over the past 5 years, out of 3,633 stocks and funds worth at least $500 million.

| Investment | Group | Annual return (5 years) | Volatility | Sharpe | Worst decline (10 years) | 10Y return | Correlation with VGIT | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| VGIT: Vanguard Intermediate-Term Treasury ETF (this page) |  | −0.1% | 5.4% | 0.00 | −16.0% | +10.5% |  |  |
| JAAA: Janus Henderson AAA CLO ETF | CLO Bonds | +5.1% | 1.7% | 2.98 | −2.6% | — | 0.17 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [BIL](https://easycompare.io/research/bil): State Street SPDR Bloomberg 1-3 Month T-Bill ETF | Treasury Bonds | +3.7% | 0.3% | 14.05 | −0.2% | +25.8% | 0.26 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| BALT: Innovator Defined Wealth Shield ETF | Crypto | +6.3% | 3.3% | 1.85 | −4.9% | — | 0.52 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| VNLA: Janus Henderson Short Duration Income ETF | Bonds | +4.0% | 1.1% | 3.77 | −4.5% | — | 0.62 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| NEAR: iShares Short Duration Bond Active ETF | Short-Term Bonds | +3.9% | 1.4% | 2.71 | −9.6% | +31.8% | 0.72 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| TBUX: T. Rowe Price Ultra Short-Term Bond ETF | Bonds | +4.1% | 1.1% | 3.85 | −1.8% | — | 0.62 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| SUB: iShares Short-Term National Muni Bond ETF | Municipal Bonds | +1.4% | 1.7% | 0.85 | −9.4% | +15.6% | 0.82 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| USTB: VictoryShares Short-Term Bond ETF | Bonds | +3.6% | 2.0% | 1.73 | −5.3% | — | 0.86 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| RAVI: Northern Trust Ultra-Short Fixed Income ETF | Bonds | +3.8% | 1.4% | 2.61 | −3.7% | +30.8% | 0.51 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| MEAR: iShares Short Maturity Municipal Bond Active ETF | Bonds | +2.4% | 1.0% | 2.37 | −2.7% | +19.3% | 0.74 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| SHY: iShares 1-3 Year Treasury Bond ETF | Treasury Bonds | +1.8% | 2.0% | 0.89 | −5.7% | +17.7% | 0.93 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [VTIP](https://easycompare.io/research/vtip): Vanguard Short-Term Inflation-Protected Securities ETF | Treasury Bonds | +2.7% | 2.9% | 0.94 | −6.3% | +32.7% | 0.75 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| FLUD: Franklin Ultra Short Bond ETF | Bonds | +3.9% | 1.4% | 2.74 | −1.7% | — | 0.44 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| LMBS: First Trust Low Duration Opportunities ETF | Mortgage-Backed Securities | +3.0% | 2.6% | 1.14 | −6.5% | +25.6% | 0.88 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| LDUR: PIMCO Enhanced Low Duration Active Exchange-Traded Fund | Bonds | +2.4% | 2.1% | 1.13 | −8.7% | +26.7% | 0.83 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |

## VGIT against its popular alternatives

The investments people most often weigh against VGIT, compared period by period and year by year.

### How do VGIT's risk and return compare with its alternatives?

This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings.

- Six of the 20 popular alternatives, led by SGOV, VTIP and VGSH, were both more rewarding and calmer than VGIT over the past 5 years, earning a higher annual return with lower volatility.
- Over the past 5 years, VGIT returned -0.1% a year, less than the S&P 500's 12.7%, with lower volatility (5.4% against 17.1%).

### Has VGIT consistently beaten its popular alternatives?

This section compares VGIT with the investments people most often weigh against it, checking each one over eight periods from one month to ten years.

- Six of the 21 popular alternatives, led by VTIP, SCHP and IUSB, outperformed VGIT in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- VTIP outperformed VGIT in every long-term period and in all but one short-term period, the most consistent record in the group.
- SGOV, VGSH and VTIP earned more for the risk they took than VGIT (a higher Sharpe ratio) and fell less in their worst decline of the past 10 years.

| Investment | 1Y return | 3Y return | 5Y return | 10Y return | Periods ahead of VGIT | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| VGIT: Vanguard Intermediate-Term Treasury ETF (this page) | −2.3% | +12.6% | −0.7% | +10.5% |  |  | 0.00 |
| [VTIP](https://easycompare.io/research/vtip): Vanguard Short-Term Inflation-Protected Securities ETF | +0.4% | +13.9% | +14.0% | +32.7% | 5/5 short-term, 3/3 long-term | all-weather | 0.94 |
| SCHP: Schwab US TIPS ETF | −1.4% | +13.9% | +0.5% | +25.0% | 3/5 short-term, 3/3 long-term | consistent | 0.05 |
| [IUSB](https://easycompare.io/research/iusb): iShares Core Universal USD Bond ETF | −1.6% | +17.5% | +0.2% | +16.9% | 3/5 short-term, 3/3 long-term | consistent | 0.04 |
| VGSH: Vanguard Short-Term Treasury ETF | +1.2% | +12.5% | +9.9% | +18.8% | 4/5 short-term, 2/3 long-term | consistent | 0.95 |
| [SGOV](https://easycompare.io/research/sgov): iShares 0-3 Month Treasury Bond ETF | +3.4% | +13.8% | +20.3% | — | 4/5 short-term, 2/3 long-term | consistent | 13.25 |
| TIP: iShares TIPS Bond ETF | −1.5% | +13.3% | −0.3% | +23.5% | 3/5 short-term, 2/3 long-term | consistent | 0.02 |
| FBND: Fidelity Total Bond ETF | −1.9% | +17.8% | +1.5% | +21.9% | 1/5 short-term, 3/3 long-term |  | 0.08 |
| IGIB: iShares 5-10 Year Investment Grade Corporate Bond ETF | −2.7% | +21.9% | +3.9% | +28.8% | 0/5 short-term, 3/3 long-term |  | 0.15 |
| [VCIT](https://easycompare.io/research/vcit): Vanguard Intermediate-Term Corporate Bond ETF | −2.6% | +21.5% | +3.2% | +26.4% | 0/5 short-term, 3/3 long-term |  | 0.13 |
| SCHZ: Schwab U.S. Aggregate Bond ETF | −1.9% | +16.2% | −1.6% | +15.0% | 1/5 short-term, 2/3 long-term |  | -0.02 |
| [AGG](https://easycompare.io/research/agg): iShares Core U.S. Aggregate Bond ETF | −1.9% | +16.2% | −1.5% | +13.3% | 1/5 short-term, 2/3 long-term |  | -0.02 |
| [BIV](https://easycompare.io/research/biv): Vanguard Intermediate-Term Bond ETF | −2.7% | +16.8% | −0.7% | +15.7% | 0/5 short-term, 2/3 long-term |  | 0.01 |
| [BND](https://easycompare.io/research/bnd): Vanguard Total Bond Market ETF | −2.1% | +15.7% | −1.8% | +13.2% | 0/5 short-term, 2/3 long-term |  | -0.03 |
| SPTI: State Street SPDR Portfolio Intermediate Term Treasury ETF | −1.9% | +13.1% | −0.4% | +12.0% | 0/5 short-term, 2/3 long-term |  | 0.01 |
| IEI: iShares 3-7 Year Treasury Bond ETF | −1.9% | +12.3% | +0.6% | +11.2% | 0/5 short-term, 2/3 long-term |  | 0.05 |
| [GOVT](https://easycompare.io/research/govt): iShares U.S. Treasury Bond ETF | −1.8% | +12.7% | −3.5% | +7.1% | 3/5 short-term, 0/3 long-term |  | -0.09 |
| SCHR: Schwab Intermediate-Term U.S. Treasury ETF | −1.9% | +13.1% | −0.5% | +10.8% | 0/5 short-term, 0/3 long-term |  | 0.01 |
| [IEF](https://easycompare.io/research/ief): iShares 7-10 Year Treasury Bond ETF | −4.1% | +12.4% | −8.0% | +3.0% | 0/5 short-term, 0/3 long-term |  | -0.18 |
| GOVI: Invesco Equal Weight 0-30 Year Treasury ETF | −5.2% | +11.3% | −16.5% | −4.4% | 0/5 short-term, 0/3 long-term |  | -0.32 |
| VGLT: Vanguard Long-Term Treasury ETF | −7.7% | +11.3% | −29.0% | −15.2% | 0/5 short-term, 0/3 long-term |  | -0.41 |
| [TLT](https://easycompare.io/research/tlt): iShares 20+ Year Treasury Bond ETF | −8.8% | +9.0% | −33.1% | −20.1% | 0/5 short-term, 0/3 long-term |  | -0.44 |

### How did VGIT do year by year?

This table shows each investment's total return in every full calendar year since 2010, along with where VGIT ranked among its popular alternatives each year.

- VGIT finished ahead of the S&P 500 in three of its 16 full calendar years, and behind it in each of the last three.
- Among its popular alternatives, SGOV came out ahead of VGIT most often, in four of the five years both traded.
- Ranked against its popular alternatives each year, VGIT finished in the top quarter in three of 16 years and in the bottom quarter in two. In 2025, it ranked 9 of 21.

| Year | VGIT | SPY |
| --- | --- | --- |
| 2025 | +7.3% | +17.7% |
| 2024 | +1.4% | +24.9% |
| 2023 | +4.3% | +26.2% |
| 2022 | −10.4% | −18.2% |
| 2021 | −2.6% | +28.7% |
| 2020 | +7.7% | +18.3% |
| 2019 | +6.2% | +31.2% |
| 2018 | +1.4% | −4.6% |
| 2017 | +1.7% | +21.7% |
| 2016 | +0.8% | +12.0% |

## Risk and diversification

How VGIT has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.

### What were VGIT's worst declines?

A drawdown is the decline from a peak to the lowest point before a new high.

- In all four of VGIT's worst declines, the S&P 500 held up better over the same dates.
- Not every decline was the market's doing: VGIT fell 16.0% from August 2020 to October 2022, while the S&P 500 rose 14.4%.
- The longest climb back to a previous high took 13 months, after VGIT fell 5.1% from May to September 2013.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −16.0% | August 4, 2020 | October 20, 2022 | not yet | +14.4% | 2022 bear market |
| −5.5% | November 4, 2010 | February 8, 2011 | June 16, 2011 | +9.0% |  |
| −5.4% | July 5, 2016 | May 16, 2018 | March 22, 2019 | +35.2% | February 2018 volatility shock |
| −5.1% | May 1, 2013 | September 5, 2013 | October 13, 2014 | +5.4% |  |

### How did VGIT do in stock market crashes?

This section measures how far VGIT, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000.

- VGIT fell less than the S&P 500 in all eight crashes it has traded through. The clearest case was the Covid crash, when VGIT fell 2.3% and the S&P 500 fell 33.7%.
- Among its popular alternatives, VGSH held up best, falling less than VGIT in six of the eight crashes they both traded through.
- VGIT began trading after the 2008 financial crisis, but eight of its popular alternatives lived through it. The mildest fall among them was IEI's 5.3%, against 55.2% for the S&P 500.

| Crash | Dates | VGIT fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | not trading | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | not trading | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | −0.5% | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | −1.2% | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −2.3% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −0.5% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −0.8% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −2.3% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −11.8% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | 0.0% | −3.4% |

### How closely does VGIT move with the S&P 500?

Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell.

- Over the past 10 years, VGIT captured 6% of the S&P 500's gains in rising months and 7% of its losses in falling months, with a beta of 0.04. It took about the same share of the market's gains as of its losses.
- VGSH took just -1% of the S&P 500's losses, against 7% for VGIT, while still keeping 5% of its gains.
- Five of the 18 popular alternatives had a higher capture ratio (upside capture divided by downside capture) than VGIT's 0.90, led by VTIP, IEI and SPTI.

Measured over the past 10 years of monthly returns against SPY.

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| VGIT: Vanguard Intermediate-Term Treasury ETF (this page) | 6.0% | 7.0% | 0.04 |
| [VTIP](https://easycompare.io/research/vtip): Vanguard Short-Term Inflation-Protected Securities ETF | 11.0% | 3.0% | 0.08 |
| SCHP: Schwab US TIPS ETF | 15.0% | 17.0% | 0.18 |
| [IUSB](https://easycompare.io/research/iusb): iShares Core Universal USD Bond ETF | 15.0% | 20.0% | 0.16 |
| VGSH: Vanguard Short-Term Treasury ETF | 5.0% | −1.0% | 0.01 |
| TIP: iShares TIPS Bond ETF | 15.0% | 17.0% | 0.18 |
| FBND: Fidelity Total Bond ETF | 17.0% | 21.0% | 0.18 |
| IGIB: iShares 5-10 Year Investment Grade Corporate Bond ETF | 22.0% | 29.0% | 0.27 |
| [VCIT](https://easycompare.io/research/vcit): Vanguard Intermediate-Term Corporate Bond ETF | 22.0% | 29.0% | 0.26 |
| SCHZ: Schwab U.S. Aggregate Bond ETF | 14.0% | 20.0% | 0.16 |
| [AGG](https://easycompare.io/research/agg): iShares Core U.S. Aggregate Bond ETF | 12.0% | 17.0% | 0.14 |
| [BIV](https://easycompare.io/research/biv): Vanguard Intermediate-Term Bond ETF | 13.0% | 18.0% | 0.15 |
| SPTI: State Street SPDR Portfolio Intermediate Term Treasury ETF | 7.0% | 7.0% | 0.05 |
| IEI: iShares 3-7 Year Treasury Bond ETF | 6.0% | 6.0% | 0.04 |
| [GOVT](https://easycompare.io/research/govt): iShares U.S. Treasury Bond ETF | 6.0% | 8.0% | 0.06 |
| SCHR: Schwab Intermediate-Term U.S. Treasury ETF | 6.0% | 7.0% | 0.05 |
| [IEF](https://easycompare.io/research/ief): iShares 7-10 Year Treasury Bond ETF | 7.0% | 14.0% | 0.08 |
| GOVI: Invesco Equal Weight 0-30 Year Treasury ETF | 6.0% | 18.0% | 0.10 |
| VGLT: Vanguard Long-Term Treasury ETF | 7.0% | 29.0% | 0.15 |
| [TLT](https://easycompare.io/research/tlt): iShares 20+ Year Treasury Bond ETF | 6.0% | 32.0% | 0.16 |

### What diversifies VGIT?

Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions).

- CLS made money in three of the three calendar years in which VGIT lost money.
- Among large ETFs, LVHI, DXJ and EMLP have moved largely independently of VGIT over the past 5 years, with correlations of 0.48 or lower, and each still earned a positive 5-year return.
- Moving a fifth of the money in VGIT into DXJ would have cut the portfolio's volatility by 1% over the past 5 years and raised its annual return (-0.5% for VGIT alone, +4.7% for the mix).

| Investment | Correlation with VGIT | 5Y return | Volatility | Sharpe | Rose in VGIT's 3 down years |
| --- | --- | --- | --- | --- | --- |
| LVHI: Franklin International Low Volatility High Dividend Index ETF | 0.48 | +119% | 11.1% | 1.48 | 2 of 3 |
| DXJ: WisdomTree Japan Hedged Equity Fund | 0.16 | +225% | 19.1% | 1.34 | 3 of 3 |
| EMLP: First Trust North American Energy Infrastructure Fund | 0.38 | +101% | 14.5% | 1.04 | 3 of 3 |
| HDV: iShares Core High Dividend ETF | 0.43 | +83.3% | 13.0% | 1.00 | 3 of 3 |
| [SMH](https://easycompare.io/research/smh): VanEck Semiconductor ETF | 0.39 | +323% | 36.9% | 0.97 | 2 of 3 |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | 0.43 | +126% | 18.9% | 0.96 | 0 of 3 |
| SPMO: Invesco S&P 500 Momentum ETF | 0.30 | +136% | 20.8% | 0.93 | 1 of 3 |
| [XLE](https://easycompare.io/research/xle): State Street Energy Select Sector SPDR ETF | 0.04 | +177% | 25.5% | 0.93 | 3 of 3 |

## Common questions

### What was VGIT's worst drawdown?

VGIT's deepest decline since it began trading in 2009 was 16.0%, from August 2020 to October 2022. It has not yet climbed back to that peak. Because VGIT launched in November 2009, that record does not include the dot-com bust or the 2008 financial crisis.

### What were VGIT's best and worst years?

Over 16 full calendar years, VGIT's best year was 2011, when it returned 9.6%. Its worst was 2022, with a return of -10.4%.

### Is there a better investment than VGIT?

Among VGIT's popular alternatives, SGOV and VTIP earned more than VGIT with less volatility over the past 5 years. SGOV returned 3.8% a year at 0.3% volatility, against a loss of 0.1% a year at 5.4%. Looking beyond its popular alternatives, NEAR (short-term bonds) and LMBS (mortgage-backed securities) earned more than VGIT with less volatility over the past 5 years. NEAR returned 3.9% a year at 1.4% volatility, against a loss of 0.1% a year at 5.4%.

### Is VGIT more volatile than the S&P 500?

No. VGIT's volatility over the past 5 years was 5.4%, 32% of the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, VGIT's return lands within 5.4% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.

### What is VGIT's Sharpe ratio?

VGIT's Sharpe ratio over the past 5 years was 0.00, against 0.79 for the S&P 500, so VGIT earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.

### How correlated is VGIT with the S&P 500?

Over the past 5 years, VGIT's monthly returns had a correlation of 0.48 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They often move together: some diversification next to an index fund, but not a cushion. In the table, the correlation column measures each option against VGIT instead: the lower it is, the more that option would diversify a VGIT holding.

### What are the best alternatives to VGIT?

Of the 21 popular alternatives we compared, six outperformed VGIT in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: VTIP, SCHP and IUSB.

### Did VGIT outperform the S&P 500?

VGIT finished ahead of the S&P 500 (SPY) in three of 16 full calendar years. In 2025, it returned +7.3%, against +17.7% for the index.

### How did VGIT do in stock market crashes?

VGIT fell less than the S&P 500 (SPY) in eight of the eight major crashes it has traded through, and further in no. The clearest case was the Covid crash, when VGIT fell 2.3% and the S&P 500 fell 33.7%.

### What diversifies VGIT?

These had a low correlation with VGIT over the past 5 years and still earned a positive 5-year return: among large ETFs, LVHI (correlation 0.48), DXJ (correlation 0.16) and EMLP (correlation 0.38); among large stocks, CAH (correlation 0.19), CLS (correlation 0.01) and FIX (correlation 0.11). A correlation near zero means the two have moved largely independently.

## More research

- [Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) Performance, Alternatives and Market Rank](https://easycompare.io/research/vtip)
- [iShares Core Universal USD Bond ETF (IUSB) Performance, Alternatives and Market Rank](https://easycompare.io/research/iusb)
- [iShares 0-3 Month Treasury Bond ETF (SGOV) Performance, Alternatives and Market Rank](https://easycompare.io/research/sgov)
- [Vanguard Intermediate-Term Corporate Bond ETF (VCIT) Performance, Alternatives and Market Rank](https://easycompare.io/research/vcit)
- [iShares Core U.S. Aggregate Bond ETF (AGG) Performance, Alternatives and Market Rank](https://easycompare.io/research/agg)
- [Vanguard Intermediate-Term Bond ETF (BIV) Performance, Alternatives and Market Rank](https://easycompare.io/research/biv)
- [Vanguard Total Bond Market ETF (BND) Performance, Alternatives and Market Rank](https://easycompare.io/research/bnd)
- [iShares U.S. Treasury Bond ETF (GOVT) Performance, Alternatives and Market Rank](https://easycompare.io/research/govt)
- [iShares 7-10 Year Treasury Bond ETF (IEF) Performance, Alternatives and Market Rank](https://easycompare.io/research/ief)
- [iShares 20+ Year Treasury Bond ETF (TLT) Performance, Alternatives and Market Rank](https://easycompare.io/research/tlt)
- [Schwab U.S. Dividend Equity ETF (SCHD) Performance, Alternatives and Market Rank](https://easycompare.io/research/schd)
- [NVIDIA (NVDA) Performance, Alternatives and Market Rank](https://easycompare.io/research/nvda)

## Explore further

- Full page with charts: https://easycompare.io/research/vgit
- All research pages: https://easycompare.io/llms.txt
- Compare the entire market against VGIT live: https://betterthanspy.com/?b=VGIT&utm_source=easycompare&utm_medium=research