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iShares 1-3 Year Treasury Bond ETF (SHY) Sharpe Ratio: 2.10

ETF · Currency in USD · Last updated Jun 24, 2026

SHY, the iShares 1-3 Year Treasury Bond ETF, is a passive fund managed by iShares that tracks the ICE US Treasury 1-3 Year Index. Launched on July 22, 2002, with a 0.15% expense ratio, SHY provides investors exposure to short-term U.S. government bonds, offering a low-risk, income-generating investment option.

SHY's Sharpe Ratio of 2.10 indicates that for each unit of volatility, it generates 2.10 units of excess return above the risk-free rate. The ratio is calculated using historical daily returns over the past 12 months (as of Jun 24, 2026).

Sharpe uses total volatility (standard deviation) which includes both upside and downside price movements, making it useful for comparing risk-adjusted returns across different assets. For how to read this number and when it can mislead, see Sharpe Ratio Explained.

SHY Sharpe Ratio Rank

SHY Sharpe Ratio Rank: 67.267
Above Average

SHY ranks above 67.2% of all investments in our database based on Sharpe Ratio over the past 12 months, indicating above-average returns relative to volatility. Securities are ranked from 0 (worst) to 100 (best).

What moves the rank

  • Strong returns with low total volatility → Higher rank
  • High volatility (both upside and downside) → Lower rank
  • Consistent returns → Higher rank than volatile returns of same magnitude
  • Sharp drawdowns increase volatility → Lower rank

What you can do with this information

  • Above-average risk-adjusted returns with room for improvement
  • Compare against category peers to gauge relative positioning
  • Monitor for movement toward top tier or decline toward median
  • Consider pairing with top-tier holdings to improve portfolio efficiency

SHY Sharpe Ratio Market Positioning

The chart shows SHY's Sharpe Ratio relative to all ETFs on our platform, with color zones indicating percentile rankings. Higher ratios indicate better risk-adjusted returns.

  • Red zone (bottom 25%): 0.83 or lower
  • Yellow zone (middle 50%): 0.83 to 2.15
  • Green zone (top 25%): 2.15 or higher
  • Top 1%: 7.02+
  • Median: 1.57 — half of all investments score higher

How it compares to other similar ETFs

The table compares iShares 1-3 Year Treasury Bond ETF's Sharpe Ratio with other ETFs in the Government Bonds, Short-Term Bond category across multiple time periods, showing how SHY's risk-adjusted performance compares to similar funds.

Data shows 1-, 5-, and 10-year periods, plus each fund's all-time average, as of Jun 24, 2026.

SymbolName1Y Sharpe Ratio5Y Sharpe Ratio10Y Sharpe RatioAll Time Sharpe Ratio
BILSPDR Bloomberg 1-3 Month T-Bill ETF19.32
SHViShares 0-1 Year Treasury Bond ETF18.56
GBILGoldman Sachs Access Treasury 0-1 Year ETF16.78
USFRWisdomTree Floating Rate Treasury Fund14.67
TFLOiShares Treasury Floating Rate Bond ETF14.11
XHLFBondBloxx Bloomberg Six Month Target Duration US Treasury ETF12.04
VGUSVanguard Ultra-Short Treasury ETF11.84
TRSYXtrackers US 0-1 Year Treasury ETF10.07
IBTGiShares iBonds Dec 2026 Term Treasury ETF7.90
MYCFState Street My2026 Corporate Bond ETF7.04
SHYiShares 1-3 Year Treasury Bond ETF2.10

S&P 500 Index

How to choose period

Historical Sharpe Ratio

The chart shows SHY's rolling Sharpe ratio over time compared to your chosen benchmark. Rising trends indicate improving returns relative to total volatility, while declining trends may signal deteriorating risk-adjusted performance or increased volatility. Use multiple timeframes to distinguish short-term fluctuations from long-term patterns.

Identify market cycles by observing when SHY consistently outperforms (line above benchmark), underperforms (below benchmark), or aligns with the benchmark.

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Sharpe Ratio Calculator

How does SHY fit in your portfolio?

Add your other holdings to see your portfolio's Sharpe Ratio and find out.

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