That's because long term interest rates fell dramatically over that period.unemployed_pysicist wrote: ↑Sun Sep 11, 2022 2:50 pmEDV and VGLT had virtually the same Sharpe ratio from February 2010 until August 2022.skierincolorado wrote: ↑Sat Sep 10, 2022 10:04 am I would not touch edv. Much more risk than vglt, but only slightly more return.
There are share classes that have been around longer. If you start in 2009 (dec 31 2008) you get a period of neae neutral rates. During this period the sharpe ratio is much higher for vglt than edv .26 vs .18.
Any period in which rates don't fall, the sharpe for vglt will be much higher. Over long time periods like 30 or 50 years this matters less (even if rates fall they are falling less per year).