CGSD vs. SHY

Last updated Jun 4, 2026

CGSD (Capital Group Short Duration Income ETF) and SHY (iShares 1-3 Year Treasury Bond ETF) are both exchange-traded funds - CGSD is a Short-Term Bond fund actively managed by Capital Group, while SHY is a Government Bonds fund tracking the ICE US Treasury 1-3 Year Index. CGSD is actively managed, while SHY is passively managed. Over the past 3 years, CGSD returned 5.21%/yr vs 4.03%/yr for SHY. A 0.77 correlation means they provide meaningful diversification when combined. CGSD charges 0.25%/yr vs 0.15%/yr for SHY.

Performance

CGSD vs. SHY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Capital Group Short Duration Income ETF (CGSD) 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, CGSD achieves a 0.70% return, which is significantly higher than SHY's 0.43% return.

CGSD

• 1D: -0.10%
• 1M: 0.14%
• YTD: 0.70%
• 6M: 1.09%
• 1Y: 4.30%
• 3Y*: 5.21%
• 5Y*: —
• 10Y*: —

SHY

• 1D: -0.05%
• 1M: 0.08%
• YTD: 0.43%
• 6M: 0.69%
• 1Y: 3.32%
• 3Y*: 4.03%
• 5Y*: 1.71%
• 10Y*: 1.65%

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

CGSD vs. SHY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
CGSD Capital Group Short Duration Income ETF	0.70%	6.11%	5.46%	5.03%	1.32%
SHY iShares 1-3 Year Treasury Bond ETF	0.43%	4.95%	3.92%	4.16%	0.51%

Correlation

The correlation between CGSD and SHY is 0.79, 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	0.79
Correlation (3Y) Calculated over the trailing 3-year period	0.76
Correlation (All Time) Calculated using the full available price history since Oct 28, 2022	0.77

The correlation between CGSD and SHY has been stable across timeframes, ranging from 0.76 to 0.79 - a consistent structural relationship.

Return for Risk

CGSD vs. SHY — Risk / Return Rank

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

CGSD

CGSD Risk / Return Rank: 87
CGSD Sharpe Ratio Rank: 87
CGSD Sortino Ratio Rank: 93
CGSD Omega Ratio Rank: 91
CGSD Calmar Ratio Rank: 77
CGSD Martin Ratio Rank: 86

SHY

SHY Risk / Return Rank: 79
SHY Sharpe Ratio Rank: 74
SHY Sortino Ratio Rank: 88
SHY Omega Ratio Rank: 82
SHY Calmar Ratio Rank: 73
SHY Martin Ratio Rank: 77

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.

CGSD vs. SHY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Capital Group Short Duration Income ETF (CGSD) 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.

	CGSD	SHY	Difference
Sharpe ratio Return per unit of total volatility	2.94	2.49	+0.45
Sortino ratio Return per unit of downside risk	4.65	4.10	+0.55
Omega ratio Gain probability vs. loss probability	1.61	1.51	+0.10
Calmar ratio Return relative to maximum drawdown	3.88	3.75	+0.13
Martin ratio Return relative to average drawdown	18.36	15.21	+3.15
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

CGSD vs. SHY - Sharpe Ratio Comparison

The current CGSD Sharpe Ratio is 2.94, which is comparable to the SHY Sharpe Ratio of 2.49. The chart below compares the historical Sharpe Ratios of CGSD 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

	CGSD	SHY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.94	2.49	+0.45
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.87	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	1.06	—
Sharpe Ratio (All Time) Calculated using the full available price history	2.41	1.28	+1.13

Drawdowns

CGSD vs. SHY - Drawdown Comparison

The maximum CGSD drawdown since its inception was -1.75%, smaller than the maximum SHY drawdown of -5.71%. Use the drawdown chart below to compare losses from any high point for CGSD and SHY.

Drawdown Indicators

	CGSD	SHY	Difference
Max Drawdown Largest peak-to-trough decline	-1.75%	-5.71%	+3.96%
Max Drawdown (1Y) Largest decline over 1 year	-1.11%	-0.89%	-0.22%
Max Drawdown (3Y) Largest decline over 3 years	-1.11%	-0.97%	-0.14%
Max Drawdown (5Y) Largest decline over 5 years	—	-5.71%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-5.71%	—
Current Drawdown Current decline from peak	-0.14%	-0.31%	+0.17%
Average Drawdown Average peak-to-trough decline	-0.28%	-0.52%	+0.24%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.23%	0.22%	+0.01%

Volatility

CGSD vs. SHY - Volatility Comparison

Capital Group Short Duration Income ETF (CGSD) has a higher volatility of 0.39% compared to iShares 1-3 Year Treasury Bond ETF (SHY) at 0.35%. This indicates that CGSD'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

	CGSD	SHY	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.39%	0.35%	+0.04%
Volatility (6M) Calculated over the trailing 6-month period	1.01%	0.92%	+0.09%
Volatility (1Y) Calculated over the trailing 1-year period	1.47%	1.34%	+0.13%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.16%	1.98%	+0.18%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.16%	1.57%	+0.59%

CGSD vs. SHY - Expense Ratio Comparison

CGSD has a 0.25% expense ratio, which is higher than SHY's 0.15% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

CGSD vs. SHY - Dividend Comparison

CGSD's dividend yield for the trailing twelve months is around 4.46%, more than SHY's 3.68% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CGSD Capital Group Short Duration Income ETF	4.46%	4.48%	4.57%	4.43%	0.64%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
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 CGSD and SHY in my portfolio?

CGSD and SHY have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, CGSD or SHY?

CGSD has higher volatility (0.39%) compared to SHY (0.35%). In terms of maximum drawdown, CGSD dropped -1.75% vs SHY's -5.71%.

Which ETF is better, CGSD or SHY?

On 3-year performance, CGSD leads with 5.21% vs 4.03% for SHY. On fees, SHY is cheaper at 0.15% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, CGSD or SHY?

Over the 3-year period, CGSD has performed better with a 5.21% return vs 4.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, CGSD or SHY?

SHY is cheaper with a 0.15% expense ratio, compared with 0.25% for CGSD.

Which ETF pays a higher dividend yield, CGSD or SHY?

CGSD has the higher dividend yield at 4.46%, compared with 3.68% for SHY.

What is the main difference between CGSD and SHY?

CGSD is categorized as Short-Term Bond, while SHY is Government Bonds. They also come from different issuers: Capital Group and iShares. Their fees differ too: 0.25% for CGSD and 0.15% for SHY.

Which has better risk-adjusted returns?

CGSD currently has the higher Sharpe Ratio (2.94 vs 2.49), 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.