FLOT vs. SHM
FLOT (iShares Floating Rate Bond ETF) and SHM (SPDR Nuveen Bloomberg Barclays Short Term Municipal Bond ETF) are both exchange-traded funds - FLOT is a Corporate Bonds fund tracking the Bloomberg US Floating Rate Notes (<5 Y), while SHM is a Municipal Bonds fund tracking the Bloomberg Municipal Managed Money Short. Both are passively managed. Over the past 10 years, FLOT returned 3.03%/yr vs 1.20%/yr for SHM. At a 0.04 correlation, their price movements are largely independent. Both charge a 0.20% expense ratio.
Performance
FLOT vs. SHM - Performance Comparison
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Returns By Period
In the year-to-date period, FLOT achieves a 1.89% return, which is significantly higher than SHM's 0.78% return. Over the past 10 years, FLOT has outperformed SHM with an annualized return of 3.03%, while SHM has yielded a comparatively lower 1.20% annualized return.
FLOT
- 1D
- 0.04%
- 1M
- 0.51%
- YTD
- 1.89%
- 6M
- 2.21%
- 1Y
- 4.91%
- 3Y*
- 5.65%
- 5Y*
- 4.20%
- 10Y*
- 3.03%
SHM
- 1D
- 0.04%
- 1M
- 0.39%
- YTD
- 0.78%
- 6M
- 1.08%
- 1Y
- 3.47%
- 3Y*
- 2.93%
- 5Y*
- 0.91%
- 10Y*
- 1.20%
FLOT vs. SHM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FLOT iShares Floating Rate Bond ETF | 1.89% | 4.91% | 6.53% | 6.43% | 1.28% | 0.45% | 0.87% | 3.97% | 1.48% | 1.65% |
SHM SPDR Nuveen Bloomberg Barclays Short Term Municipal Bond ETF | 0.78% | 3.95% | 1.22% | 2.92% | -3.82% | -0.37% | 2.65% | 3.64% | 1.56% | 0.99% |
Correlation
The correlation between FLOT and SHM is 0.15, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.15 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.11 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.09 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.05 |
Correlation (All Time) Calculated using the full available price history since Jun 20, 2011 | 0.04 |
The correlation between FLOT and SHM shifts across timeframes, from 0.04 (all time) to 0.15 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
FLOT vs. SHM — Risk / Return Rank
FLOT
SHM
FLOT vs. SHM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Floating Rate Bond ETF (FLOT) and SPDR Nuveen Bloomberg Barclays Short Term Municipal Bond ETF (SHM). 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.
| FLOT | SHM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +3.92 | ||
| Sortino ratioReturn per unit of downside risk | +7.86 | ||
| Omega ratioGain probability vs. loss probability | 3.31 | 1.59 | +1.72 |
| Calmar ratioReturn relative to maximum drawdown | 11.42 | 3.08 | +8.34 |
| Martin ratioReturn relative to average drawdown | 106.82 | 7.88 | +98.93 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| FLOT | SHM | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 6.68 | 2.76 | +3.92 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 2.38 | 0.44 | +1.94 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.73 | 0.36 | +0.37 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.66 | 0.48 | +0.18 |
Drawdowns
FLOT vs. SHM - Drawdown Comparison
The maximum FLOT drawdown since its inception was -13.54%, which is greater than SHM's maximum drawdown of -11.61%. Use the drawdown chart below to compare losses from any high point for FLOT and SHM.
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Drawdown Indicators
| FLOT | SHM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -13.54% | -11.61% | -1.93% |
Max Drawdown (1Y)Largest decline over 1 year | -0.43% | -1.13% | +0.70% |
Max Drawdown (3Y)Largest decline over 3 years | -1.57% | -2.03% | +0.46% |
Max Drawdown (5Y)Largest decline over 5 years | -2.36% | -6.67% | +4.31% |
Max Drawdown (10Y)Largest decline over 10 years | -13.54% | -11.61% | -1.93% |
Current DrawdownCurrent decline from peak | 0.00% | -0.37% | +0.37% |
Average DrawdownAverage peak-to-trough decline | -0.21% | -0.97% | +0.76% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.05% | 0.44% | -0.39% |
Volatility
FLOT vs. SHM - Volatility Comparison
The current volatility for iShares Floating Rate Bond ETF (FLOT) is 0.18%, while SPDR Nuveen Bloomberg Barclays Short Term Municipal Bond ETF (SHM) has a volatility of 0.35%. This indicates that FLOT experiences smaller price fluctuations and is considered to be less risky than SHM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FLOT | SHM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.18% | 0.35% | -0.17% |
Volatility (6M)Calculated over the trailing 6-month period | 0.62% | 0.85% | -0.23% |
Volatility (1Y)Calculated over the trailing 1-year period | 0.74% | 1.26% | -0.52% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.77% | 2.07% | -0.30% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.15% | 3.31% | +0.84% |
FLOT vs. SHM - Expense Ratio Comparison
Both FLOT and SHM have an expense ratio of 0.20%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
FLOT vs. SHM - Dividend Comparison
FLOT's dividend yield for the trailing twelve months is around 4.53%, more than SHM's 2.67% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FLOT iShares Floating Rate Bond ETF | 4.53% | 4.84% | 5.82% | 5.66% | 2.06% | 0.43% | 1.25% | 2.78% | 2.41% | 1.46% | 0.97% | 0.53% |
SHM SPDR Nuveen Bloomberg Barclays Short Term Municipal Bond ETF | 2.67% | 2.61% | 2.06% | 1.15% | 0.69% | 0.86% | 1.24% | 1.40% | 1.23% | 1.06% | 0.94% | 0.92% |
Frequently Asked Questions
FLOT and SHM have a correlation of 0.15, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SHM has higher volatility (0.35%) compared to FLOT (0.18%). In terms of maximum drawdown, FLOT dropped -13.54% vs SHM's -11.61%.
On 10-year performance, FLOT leads with 3.03% vs 1.20% for SHM. Both ETFs have the same 0.20% expense ratio. On volatility, FLOT has been the lower-risk option at 0.18%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, FLOT has performed better with a 3.03% return vs 1.20%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
FLOT and SHM have the same expense ratio: 0.20% per year.
FLOT has the higher dividend yield at 4.53%, compared with 2.67% for SHM.
FLOT is categorized as Corporate Bonds, while SHM is Municipal Bonds. FLOT tracks Bloomberg US Floating Rate Notes (<5 Y), while SHM tracks Bloomberg Municipal Managed Money Short. They also come from different issuers: iShares and State Street.
FLOT currently has the higher Sharpe Ratio (6.68 vs 2.76), 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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