Fund Evaluator:
Vanguard Short-Term Federal Inv (VSGBX)
Follow This Fund
Best Performing in Short Government Over the Last Year
| 3.2% | Vanguard Short-Term Federal Adm (VSGDX) |
| 3.1% | Vanguard Short-Term Federal Inv (VSGBX) |
| 2.9% | Vanguard Short-Term Treasury Adm (VFIRX) |
| 2.9% | Vanguard Short-Term Treasury Idx Admiral (VSBSX) |
| 2.8% | Vanguard Short-Term Treasury Inv (VFISX) |
Fund Details
Vanguard Short-Term Federal Inv Overview
Vanguard Short-Term Federal Inv (VSGBX) is an actively managed Taxable Bond Short Government fund. Vanguard launched the fund in 1987.
The investment seeks current income while maintaining limited price volatility. Under normal circumstances, the fund will invest at least 80% of its assets in bonds issued or guaranteed by the U.S. government and its agencies and instrumentalities, many of which are not backed by the full faith and credit of the U.S. government. The majority of these investments will have a dollar-weighted average maturity of 1 to 4 years. The fund may invest in derivatives, such as options, futures contracts, and other swap agreements.
About Vanguard Short-Term Federal Inv (VSGBX)
There are 3 members of the management team with an average tenure of 4.37 years: Brian Quigley (2015), Alexander Payne (2026), Nathan Persons (2025). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and Bloomberg Government 1-5 Yr TR USD index with a weighting of 100%. Vanguard Short-Term Federal Inv has 332 securities in its portfolio. The top 10 holdings constitute 35.6% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Vanguard Short-Term Federal Inv is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Vanguard Short-Term Federal Inv has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 97.1% (97.1% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Vanguard Short-Term Federal Inv has 3.0% of the portfolio in cash.
Assets Under Management
The fund has $334 million in total assets, which is below the $434 million average for the Short Government category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
VSGBX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Vanguard Short-Term Federal Inv expense ratio is below average compared to funds in the Short Government category. Vanguard Short-Term Federal Inv has an expense ratio of 0.20%, which is 69% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Vanguard Short-Term Federal Inv has a portfolio turnover rate of 398%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 217% for the Short Government category.
Recently, in the month of June 2026, Vanguard Short-Term Federal Inv returned 0.0%, which earned it a grade of D, as the Short Government category had an average return of 0.1%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
Vanguard Short-Term Federal Inv has a trailing yield of 3.85%, which is above the 3.80% category average. The fund normally distributes its income monthly.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Vanguard Short-Term Federal Inv Grades
Year to date, the fund has returned 0.7%, 0.1 percentage points better than the category, which translates into a grade of B. The fund has returned 3.1% over the past year (grade of B), 4.6% over the past three years (grade of B) and 1.6% per year over the past five years (grade of C) and 1.8% per year over the past 10 years (grade of B).
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VSGBX Trailing NAV Total Returns Data as of 6/30/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| VSGBX Return (NAV) | 0.0% | 0.3% | 3.1% | 4.6% | 1.6% | 1.8% |
| VSGBX Grade | D | C | B | B | C | B |
| +/- Category | -0.1% | -0.1% | 0.1% | 0.3% | 0.0% | 0.3% |
| Short Government Avg | 0.1% | 0.4% | 3.0% | 4.3% | 1.6% | 1.5% |
| VSGBX Tax Cost Ratio | na | na | 1.5% | 1.5% | 1.2% | 1.0% |
VSGBX Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| VSGBX Return (NAV) | 0.7% | 5.8% | 4.2% | 3.8% | -5.3% | -0.6% | 4.3% | 4.1% | 1.3% | 0.7% | 1.1% |
| VSGBX Grade | B | A | B | D | D | B | A | B | C | B | B |
| +/- Category | 0.1% | 0.4% | 0.3% | -0.2% | -0.5% | 0.5% | 1.2% | 0.9% | 0.1% | 0.2% | 0.5% |
| Short Government Avg | 0.7% | 5.4% | 3.8% | 4.0% | -4.9% | -1.1% | 3.2% | 3.2% | 1.1% | 0.5% | 0.7% |
| Risk Measures | |
| Standard Deviation: | 2.1% |
| Total Risk Index: | 0.17 - Low |
| Category Risk Index: | 1.06 - Above Average |
| Category Risk Grade: | D (72% Rank) |
| Beta: | 0.34 |
| R-Squared: | 87% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | High Quality Limited Sensitivity |
| Yield: | 3.9% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | None |
| Total Assets: | $4490 Mil |
| Fund Total Assets: | $ 335 Mil |
| Share Class Type: | Inv |
| Portfolio Turnover: | 398% |
Management Team
| Number of Managers: 3 | |||
| Longest Tenure: 11.5 years | |||
| Average Tenure: 4.4 years | |||
| Managers (Year): Quigley Brian (2015), Persons Nathan (2025), Payne Alexander (2026) | |||
Portfolio Composition (as of 5/31/26)
| # of Holdings: | 332 |
| % in Top 10 Holdings: | 35.6% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 0.0% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 97.1% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 3.0% |
Purchase Information
| Fund Family: | Vanguard |
| Phone Number: | 800-662-7447 |
| Website: | www.vanguard.com |
| Status: | Open |
| Inception Date: | December 31, 1987 |
| Min. Initial Purchase: | $3,000 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.20% ( Rating : Below Avg ) |
| Category Average Expense Ratio (%): | 0.64% |
| Share Class: | Vanguard Short-Term Federal Inv |
| Min. Subsequent Purchase: | $ 1 |
| Min. Subsequent IRA Purchase: | $ 0 |
