EEM vs. SHY
EEM (iShares MSCI Emerging Markets ETF) and SHY (iShares 1-3 Year Treasury Bond ETF) are both exchange-traded funds - EEM is a Emerging Markets Equities fund tracking the MSCI Emerging Markets Index (Net), 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, EEM returned 8.32%/yr vs 1.65%/yr for SHY. Their -0.13 correlation means they have often moved in opposite directions in the past. EEM charges 0.72%/yr vs 0.15%/yr for SHY.
Performance
EEM vs. SHY - Performance Comparison
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Returns By Period
In the year-to-date period, EEM achieves a 17.75% return, which is significantly higher than SHY's 0.76% return. Over the past 10 years, EEM has outperformed SHY with an annualized return of 8.32%, while SHY has yielded a comparatively lower 1.65% annualized return.
EEM
- 1D
- 0.79%
- 1M
- -2.45%
- 6M
- 9.01%
- YTD
- 17.75%
- 1Y
- 35.57%
- 3Y*
- 18.45%
- 5Y*
- 6.91%
- 10Y*
- 8.32%
- ALL TIME*
- 9.87%
SHY
- 1D
- -0.01%
- 1M
- 0.07%
- 6M
- 0.55%
- YTD
- 0.76%
- 1Y
- 2.53%
- 3Y*
- 4.19%
- 5Y*
- 1.78%
- 10Y*
- 1.65%
- ALL TIME*
- 1.95%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $1.56B | $1.60B | $1.90B | |
| $257.73M | $267.74M | $273.79M |
EEM vs. SHY - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
EEM iShares MSCI Emerging Markets ETF | 17.75% | 33.98% | 6.49% | 8.95% | -20.56% | -3.63% | 17.02% | 18.22% | -15.31% | 37.26% |
SHY iShares 1-3 Year Treasury Bond ETF | 0.76% | 4.95% | 3.92% | 4.16% | -3.88% | -0.71% | 3.03% | 3.38% | 1.46% | 0.26% |
Correlation
The correlation between EEM and SHY is 0.23, which is low. Their historical price movements had little consistent relationship.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.23 |
Correlation (3Y) Balances recent behavior with more history. | 0.15 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.13 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.01 |
Correlation (All Time) Calculated using the full available price history since Apr 14, 2003 | -0.13 |
The correlation between EEM and SHY shifts across timeframes, from -0.13 (all time) to 0.23 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
EEM vs. SHY — Risk / Return Rank
EEM
SHY
EEM vs. SHY - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Emerging Markets ETF (EEM) 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.
| EEM | SHY | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.79 | ||
| Sortino ratioReturn per unit of downside risk | -1.58 | ||
| Omega ratioGain probability vs. loss probability | 1.27 | 1.45 | -0.18 |
| Calmar ratioReturn relative to maximum drawdown | 2.44 | 3.43 | -0.99 |
| Martin ratioReturn relative to average drawdown | 7.49 | 13.40 | -5.91 |
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Drawdowns
EEM vs. SHY - Drawdown Comparison
The maximum EEM drawdown since its inception was -66.43%, which is greater than SHY's maximum drawdown of -5.71%. Use the drawdown chart below to compare losses from any high point for EEM and SHY.
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Drawdown Indicators
| EEM | SHY | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -66.43% | -5.71% | -60.72% |
Max Drawdown (1Y)Largest decline over 1 year | -14.24% | -0.89% | -13.35% |
Max Drawdown (3Y)Largest decline over 3 years | -17.29% | -0.97% | -16.32% |
Max Drawdown (5Y)Largest decline over 5 years | -35.01% | -5.67% | -29.34% |
Max Drawdown (10Y)Largest decline over 10 years | -39.82% | -5.71% | -34.11% |
Current DrawdownCurrent decline from peak | -10.00% | -0.01% | -9.99% |
Average DrawdownAverage peak-to-trough decline | -15.95% | -0.52% | -15.43% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.63% | 0.23% | +4.40% |
Volatility
EEM vs. SHY - Volatility Comparison
iShares MSCI Emerging Markets ETF (EEM) has a higher volatility of 9.09% compared to iShares 1-3 Year Treasury Bond ETF (SHY) at 0.38%. This indicates that EEM'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
| EEM | SHY | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 9.09% | 0.38% | +8.71% |
Volatility (6M)Calculated over the trailing 6-month period | 22.40% | 1.07% | +21.33% |
Volatility (1Y)Calculated over the trailing 1-year period | 24.46% | 1.38% | +23.08% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.83% | 2.00% | +17.83% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.80% | 1.57% | +19.23% |
EEM vs. SHY - Expense Ratio Comparison
EEM has a 0.72% expense ratio, which is higher than SHY's 0.15% expense ratio.
Dividends
EEM vs. SHY - Dividend Comparison
EEM's dividend yield for the trailing twelve months is around 1.74%, less than SHY's 3.65% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
EEM iShares MSCI Emerging Markets ETF | 1.74% | 2.22% | 2.43% | 2.63% | 2.50% | 1.99% | 1.45% | 2.76% | 2.24% | 1.89% | 1.89% | 2.49% |
SHY iShares 1-3 Year Treasury Bond ETF | 3.32% | 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
EEM and SHY have a correlation of 0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
EEM has higher volatility (9.09%) compared to SHY (0.38%). In terms of maximum drawdown, EEM dropped -66.43% vs SHY's -5.71%.
On 10-year performance, EEM leads with 8.32% vs 1.65% for SHY. On fees, SHY is cheaper at 0.15% per year. On volatility, SHY has been the lower-risk option at 0.38%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, EEM has performed better with a 8.32% return vs 1.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SHY is cheaper with a 0.15% expense ratio, compared with 0.72% for EEM.
SHY has the higher dividend yield at 3.32%, compared with 1.74% for EEM.
EEM is categorized as Emerging Markets Equities, while SHY is Government Bonds. EEM tracks MSCI Emerging Markets Index (Net), while SHY tracks ICE US Treasury 1-3 Year Index. Their fees differ too: 0.72% for EEM and 0.15% for SHY.
SHY currently has the higher Sharpe Ratio (2.21 vs 1.42), 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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