FTSM vs. GOVT
FTSM (First Trust Enhanced Short Maturity ETF) and GOVT (iShares U.S. Treasury Bond ETF) are both exchange-traded funds - FTSM is a Ultrashort Bond fund actively managed by First Trust, while GOVT is a Government Bonds fund tracking the ICE U.S. Treasury Core Bond Index. FTSM is actively managed, while GOVT is passively managed. Over the past 10 years, FTSM returned 2.55%/yr vs 0.90%/yr for GOVT. At a 0.27 correlation, their price movements are largely independent. FTSM charges 0.44%/yr vs 0.05%/yr for GOVT.
Performance
FTSM vs. GOVT - Performance Comparison
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Returns By Period
In the year-to-date period, FTSM achieves a 1.49% return, which is significantly higher than GOVT's 0.02% return. Over the past 10 years, FTSM has outperformed GOVT with an annualized return of 2.55%, while GOVT has yielded a comparatively lower 0.90% annualized return.
FTSM
- 1D
- 0.06%
- 1M
- 0.37%
- YTD
- 1.49%
- 6M
- 1.84%
- 1Y
- 4.15%
- 3Y*
- 4.86%
- 5Y*
- 3.46%
- 10Y*
- 2.55%
GOVT
- 1D
- 0.13%
- 1M
- 0.14%
- YTD
- 0.02%
- 6M
- 0.01%
- 1Y
- 3.37%
- 3Y*
- 2.88%
- 5Y*
- -0.43%
- 10Y*
- 0.90%
FTSM vs. GOVT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FTSM First Trust Enhanced Short Maturity ETF | 1.49% | 4.66% | 5.22% | 5.12% | 1.02% | -0.01% | 1.12% | 2.82% | 1.94% | 1.57% |
GOVT iShares U.S. Treasury Bond ETF | 0.02% | 3.77% | 2.95% | 4.17% | -13.39% | -1.11% | 7.28% | 7.36% | 0.26% | 2.19% |
Correlation
The correlation between FTSM and GOVT is 0.59, 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 | 0.59 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.58 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.49 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.31 |
Correlation (All Time) Calculated using the full available price history since Aug 7, 2014 | 0.27 |
Over the past year, FTSM and GOVT have become more correlated (0.59) than their long-term average of 0.27, meaning their price movements have been converging.
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Return for Risk
FTSM vs. GOVT — Risk / Return Rank
FTSM
GOVT
FTSM vs. GOVT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Enhanced Short Maturity ETF (FTSM) and iShares U.S. Treasury Bond ETF (GOVT). 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.
| FTSM | GOVT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +7.83 | ||
| Sortino ratioReturn per unit of downside risk | +19.26 | ||
| Omega ratioGain probability vs. loss probability | 4.37 | 1.16 | +3.21 |
| Calmar ratioReturn relative to maximum drawdown | 35.72 | 1.19 | +34.53 |
| Martin ratioReturn relative to average drawdown | 178.37 | 3.47 | +174.91 |
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
| FTSM | GOVT | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 8.77 | 0.95 | +7.83 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 7.04 | -0.07 | +7.11 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 2.91 | 0.17 | +2.73 |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.96 | 0.26 | +1.70 |
Drawdowns
FTSM vs. GOVT - Drawdown Comparison
The maximum FTSM drawdown since its inception was -4.12%, smaller than the maximum GOVT drawdown of -19.07%. Use the drawdown chart below to compare losses from any high point for FTSM and GOVT.
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Drawdown Indicators
| FTSM | GOVT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -4.12% | -19.07% | +14.95% |
Max Drawdown (1Y)Largest decline over 1 year | -0.12% | -2.85% | +2.73% |
Max Drawdown (3Y)Largest decline over 3 years | -0.15% | -5.43% | +5.28% |
Max Drawdown (5Y)Largest decline over 5 years | -0.65% | -16.60% | +15.95% |
Max Drawdown (10Y)Largest decline over 10 years | -4.12% | -19.07% | +14.95% |
Current DrawdownCurrent decline from peak | 0.00% | -7.05% | +7.05% |
Average DrawdownAverage peak-to-trough decline | -0.22% | -5.25% | +5.03% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.02% | 0.97% | -0.95% |
Volatility
FTSM vs. GOVT - Volatility Comparison
The current volatility for First Trust Enhanced Short Maturity ETF (FTSM) is 0.16%, while iShares U.S. Treasury Bond ETF (GOVT) has a volatility of 1.10%. This indicates that FTSM experiences smaller price fluctuations and is considered to be less risky than GOVT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FTSM | GOVT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.16% | 1.10% | -0.94% |
Volatility (6M)Calculated over the trailing 6-month period | 0.35% | 2.52% | -2.17% |
Volatility (1Y)Calculated over the trailing 1-year period | 0.48% | 3.63% | -3.15% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 0.49% | 6.04% | -5.55% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 0.88% | 5.22% | -4.34% |
FTSM vs. GOVT - Expense Ratio Comparison
FTSM has a 0.44% expense ratio, which is higher than GOVT's 0.05% expense ratio.
Dividends
FTSM vs. GOVT - Dividend Comparison
FTSM's dividend yield for the trailing twelve months is around 4.16%, more than GOVT's 3.58% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FTSM First Trust Enhanced Short Maturity ETF | 4.16% | 4.28% | 4.91% | 4.62% | 1.62% | 0.39% | 1.20% | 2.38% | 2.14% | 1.49% | 1.03% | 0.48% |
GOVT iShares U.S. Treasury Bond ETF | 3.58% | 3.49% | 3.14% | 2.65% | 1.77% | 0.96% | 2.17% | 1.98% | 1.97% | 1.57% | 1.40% | 1.25% |
Frequently Asked Questions
FTSM and GOVT have a correlation of 0.59, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
GOVT has higher volatility (1.10%) compared to FTSM (0.16%). In terms of maximum drawdown, FTSM dropped -4.12% vs GOVT's -19.07%.
On 10-year performance, FTSM leads with 2.55% vs 0.90% for GOVT. On fees, GOVT is cheaper at 0.05% per year. On volatility, FTSM has been the lower-risk option at 0.16%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, FTSM has performed better with a 2.55% return vs 0.90%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
GOVT is cheaper with a 0.05% expense ratio, compared with 0.44% for FTSM.
FTSM has the higher dividend yield at 4.16%, compared with 3.58% for GOVT.
FTSM is categorized as Ultrashort Bond, while GOVT is Government Bonds. They also come from different issuers: First Trust and iShares. Their fees differ too: 0.44% for FTSM and 0.05% for GOVT.
FTSM currently has the higher Sharpe Ratio (8.77 vs 0.95), 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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