BBBMX vs. SHY

Last updated Jun 3, 2026

BBBMX (BBH Limited Duration Fund Class N) and SHY (iShares 1-3 Year Treasury Bond ETF) are both funds - BBBMX is a Ultrashort Bond fund actively managed by BBH, while SHY is a Government Bonds fund tracking the ICE US Treasury 1-3 Year Index. BBBMX is actively managed, while SHY is passively managed. Over the past 10 years, BBBMX returned 3.36%/yr vs 1.65%/yr for SHY. A 0.52 correlation means they provide meaningful diversification when combined. BBBMX charges 0.35%/yr vs 0.15%/yr for SHY.

Performance

BBBMX vs. SHY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in BBH Limited Duration Fund Class N (BBBMX) and iShares 1-3 Year Treasury Bond ETF (SHY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BBBMX achieves a 1.32% return, which is significantly higher than SHY's 0.48% return. Over the past 10 years, BBBMX has outperformed SHY with an annualized return of 3.36%, while SHY has yielded a comparatively lower 1.65% annualized return.

BBBMX

• 1D: -0.10%
• 1M: 0.25%
• YTD: 1.32%
• 6M: 1.73%
• 1Y: 4.62%
• 3Y*: 6.23%
• 5Y*: 3.91%
• 10Y*: 3.36%

SHY

• 1D: 0.00%
• 1M: 0.00%
• YTD: 0.48%
• 6M: 0.80%
• 1Y: 3.34%
• 3Y*: 4.04%
• 5Y*: 1.73%
• 10Y*: 1.65%

*Multi-year figures are annualized to reflect compound growth (CAGR)

BBBMX vs. SHY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
BBBMX BBH Limited Duration Fund Class N	1.32%	5.54%	6.81%	7.44%	-1.48%	1.10%	2.78%	4.30%	1.99%	2.31%
SHY iShares 1-3 Year Treasury Bond ETF	0.48%	4.95%	3.92%	4.16%	-3.88%	-0.71%	3.03%	3.38%	1.46%	0.26%

Correlation

The correlation between BBBMX and SHY is 0.56, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.56
Correlation (3Y) Calculated over the trailing 3-year period	0.57
Correlation (5Y) Calculated over the trailing 5-year period	0.55
Correlation (10Y) Calculated over the trailing 10-year period	0.40
Correlation (All Time) Calculated using the full available price history since Jul 29, 2002	0.52

The correlation between BBBMX and SHY shifts across timeframes, from 0.40 (10 years) to 0.57 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

BBBMX vs. SHY — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

BBBMX

BBBMX Risk / Return Rank: 96
BBBMX Sharpe Ratio Rank: 88
BBBMX Sortino Ratio Rank: 99
BBBMX Omega Ratio Rank: 98
BBBMX Calmar Ratio Rank: 98
BBBMX Martin Ratio Rank: 99

SHY

SHY Risk / Return Rank: 79
SHY Sharpe Ratio Rank: 76
SHY Sortino Ratio Rank: 89
SHY Omega Ratio Rank: 84
SHY Calmar Ratio Rank: 72
SHY Martin Ratio Rank: 76

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

BBBMX vs. SHY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BBH Limited Duration Fund Class N (BBBMX) and iShares 1-3 Year Treasury Bond ETF (SHY). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	BBBMX	SHY	Difference
Sharpe ratio Return per unit of total volatility	2.87	2.51	+0.36
Sortino ratio Return per unit of downside risk	8.28	4.14	+4.14
Omega ratio Gain probability vs. loss probability	2.54	1.51	+1.02
Calmar ratio Return relative to maximum drawdown	8.10	3.67	+4.43
Martin ratio Return relative to average drawdown	39.52	14.96	+24.56
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BBBMX vs. SHY - Sharpe Ratio Comparison

The current BBBMX Sharpe Ratio is 2.87, which is comparable to the SHY Sharpe Ratio of 2.51. The chart below compares the historical Sharpe Ratios of BBBMX and SHY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	BBBMX	SHY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.87	2.51	+0.36
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	2.51	0.88	+1.64
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	2.28	1.06	+1.22
Sharpe Ratio (All Time) Calculated using the full available price history	1.22	1.29	-0.07

Drawdowns

BBBMX vs. SHY - Drawdown Comparison

The maximum BBBMX drawdown since its inception was -6.50%, which is greater than SHY's maximum drawdown of -5.71%. Use the drawdown chart below to compare losses from any high point for BBBMX and SHY.

Drawdown Indicators

	BBBMX	SHY	Difference
Max Drawdown Largest peak-to-trough decline	-6.50%	-5.71%	-0.79%
Max Drawdown (1Y) Largest decline over 1 year	-0.57%	-0.89%	+0.32%
Max Drawdown (3Y) Largest decline over 3 years	-0.57%	-0.97%	+0.40%
Max Drawdown (5Y) Largest decline over 5 years	-3.18%	-5.71%	+2.53%
Max Drawdown (10Y) Largest decline over 10 years	-6.50%	-5.71%	-0.79%
Current Drawdown Current decline from peak	-0.10%	-0.26%	+0.16%
Average Drawdown Average peak-to-trough decline	-0.57%	-0.52%	-0.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.12%	0.22%	-0.10%

Volatility

BBBMX vs. SHY - Volatility Comparison

BBH Limited Duration Fund Class N (BBBMX) has a higher volatility of 0.53% compared to iShares 1-3 Year Treasury Bond ETF (SHY) at 0.37%. This indicates that BBBMX's price experiences larger fluctuations and is considered to be riskier than SHY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BBBMX	SHY	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.53%	0.37%	+0.16%
Volatility (6M) Calculated over the trailing 6-month period	1.25%	0.93%	+0.32%
Volatility (1Y) Calculated over the trailing 1-year period	1.61%	1.34%	+0.27%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.56%	1.98%	-0.42%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.48%	1.57%	-0.09%

BBBMX vs. SHY - Expense Ratio Comparison

BBBMX has a 0.35% expense ratio, which is higher than SHY's 0.15% expense ratio.

Dividends

BBBMX vs. SHY - Dividend Comparison

BBBMX's dividend yield for the trailing twelve months is around 4.52%, more than SHY's 3.68% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BBBMX BBH Limited Duration Fund Class N	4.52%	4.60%	4.80%	4.23%	1.78%	1.29%	2.03%	2.93%	2.57%	1.99%	2.00%	1.72%
SHY iShares 1-3 Year Treasury Bond ETF	3.68%	3.81%	3.92%	2.99%	1.30%	0.26%	0.94%	2.12%	1.72%	0.98%	0.71%	0.54%

Frequently Asked Questions

Can I hold both BBBMX and SHY in my portfolio?

BBBMX and SHY have a correlation of 0.56, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BBBMX or SHY?

BBBMX has higher volatility (0.53%) compared to SHY (0.37%). In terms of maximum drawdown, BBBMX dropped -6.50% vs SHY's -5.71%.

Which has better risk-adjusted returns?

BBBMX currently has the higher Sharpe Ratio (2.87 vs 2.51), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.