BSV vs. SHY
BSV (Vanguard Short-Term Bond Index Fund ETF Shares) and SHY (iShares 1-3 Year Treasury Bond ETF) are both exchange-traded funds - BSV is a Short-Term Bond fund tracking the Bloomberg U.S. 1–5 Year Government/Credit Float Adjusted Index, while SHY is a Government Bonds fund tracking the ICE US Treasury 1-3 Year Index. Both are passively managed. Over the past 10 years, BSV returned 1.90%/yr vs 1.61%/yr for SHY. A 0.80 correlation means they provide meaningful diversification when combined. BSV charges 0.03%/yr vs 0.15%/yr for SHY.
Performance
BSV vs. SHY - Performance Comparison
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Returns By Period
In the year-to-date period, BSV achieves a 0.21% return, which is significantly lower than SHY's 0.36% return. Over the past 10 years, BSV has outperformed SHY with an annualized return of 1.90%, while SHY has yielded a comparatively lower 1.61% annualized return.
BSV
- 1D
- -0.12%
- 1M
- 0.11%
- YTD
- 0.21%
- 6M
- 0.37%
- 1Y
- 3.25%
- 3Y*
- 4.47%
- 5Y*
- 1.66%
- 10Y*
- 1.90%
SHY
- 1D
- -0.10%
- 1M
- 0.04%
- YTD
- 0.36%
- 6M
- 0.48%
- 1Y
- 2.93%
- 3Y*
- 4.07%
- 5Y*
- 1.74%
- 10Y*
- 1.61%
BSV vs. SHY - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
BSV Vanguard Short-Term Bond Index Fund ETF Shares | 0.21% | 6.00% | 3.78% | 4.90% | -5.49% | -1.09% | 4.70% | 4.98% | 1.34% | 1.20% |
SHY iShares 1-3 Year Treasury Bond ETF | 0.36% | 4.95% | 3.92% | 4.16% | -3.88% | -0.71% | 3.03% | 3.38% | 1.46% | 0.26% |
Correlation
The correlation between BSV and SHY is 0.94, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.94 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.95 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.95 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.89 |
Correlation (All Time) Calculated using the full available price history since Apr 10, 2007 | 0.80 |
The correlation between BSV and SHY shifts across timeframes, from 0.80 (all time) to 0.95 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
BSV vs. SHY — Risk / Return Rank
BSV
SHY
BSV vs. SHY - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Bond Index Fund ETF Shares (BSV) 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| BSV | SHY | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.35 | ||
| Sortino ratioReturn per unit of downside risk | -0.57 | ||
| Omega ratioGain probability vs. loss probability | 1.34 | 1.43 | -0.09 |
| Calmar ratioReturn relative to maximum drawdown | 2.53 | 3.31 | -0.78 |
| Martin ratioReturn relative to average drawdown | 8.35 | 12.93 | -4.59 |
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Drawdowns
BSV vs. SHY - Drawdown Comparison
The maximum BSV drawdown since its inception was -8.54%, which is greater than SHY's maximum drawdown of -5.71%. Use the drawdown chart below to compare losses from any high point for BSV and SHY.
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Drawdown Indicators
| BSV | SHY | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -8.54% | -5.71% | -2.83% |
Max Drawdown (1Y)Largest decline over 1 year | -1.29% | -0.89% | -0.40% |
Max Drawdown (3Y)Largest decline over 3 years | -1.53% | -0.97% | -0.56% |
Max Drawdown (5Y)Largest decline over 5 years | -8.54% | -5.71% | -2.83% |
Max Drawdown (10Y)Largest decline over 10 years | -8.54% | -5.71% | -2.83% |
Current DrawdownCurrent decline from peak | -0.70% | -0.38% | -0.32% |
Average DrawdownAverage peak-to-trough decline | -0.97% | -0.52% | -0.45% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.39% | 0.23% | +0.16% |
Volatility
BSV vs. SHY - Volatility Comparison
Vanguard Short-Term Bond Index Fund ETF Shares (BSV) has a higher volatility of 0.59% compared to iShares 1-3 Year Treasury Bond ETF (SHY) at 0.49%. This indicates that BSV'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.
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Volatility by Period
| BSV | SHY | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.59% | 0.49% | +0.10% |
Volatility (6M)Calculated over the trailing 6-month period | 1.33% | 1.01% | +0.32% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.82% | 1.37% | +0.45% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.73% | 1.99% | +0.74% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.38% | 1.57% | +0.81% |
BSV vs. SHY - Expense Ratio Comparison
BSV has a 0.03% expense ratio, which is lower than SHY's 0.15% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
BSV vs. SHY - Dividend Comparison
BSV's dividend yield for the trailing twelve months is around 4.00%, more than SHY's 3.69% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BSV Vanguard Short-Term Bond Index Fund ETF Shares | 4.00% | 3.83% | 3.38% | 2.46% | 1.50% | 1.45% | 1.79% | 2.29% | 1.99% | 1.65% | 1.48% | 1.40% |
SHY iShares 1-3 Year Treasury Bond ETF | 3.69% | 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
With a correlation of 0.94, BSV and SHY move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
BSV has higher volatility (0.59%) compared to SHY (0.49%). In terms of maximum drawdown, BSV dropped -8.54% vs SHY's -5.71%.
On 10-year performance, BSV leads with 1.90% vs 1.61% for SHY. On fees, BSV is cheaper at 0.03% per year. On volatility, SHY has been the lower-risk option at 0.49%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, BSV has performed better with a 1.90% return vs 1.61%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
BSV is cheaper with a 0.03% expense ratio, compared with 0.15% for SHY.
BSV has the higher dividend yield at 4.00%, compared with 3.69% for SHY.
BSV is categorized as Short-Term Bond, while SHY is Government Bonds. BSV tracks Bloomberg U.S. 1–5 Year Government/Credit Float Adjusted Index, while SHY tracks ICE US Treasury 1-3 Year Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.03% for BSV and 0.15% for SHY.
SHY currently has the higher Sharpe Ratio (2.14 vs 1.79), 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.
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