GOVT vs. FTSM
GOVT (iShares U.S. Treasury Bond ETF) and FTSM (First Trust Enhanced Short Maturity ETF) are both exchange-traded funds - GOVT is a Government Bonds fund tracking the ICE U.S. Treasury Core Bond Index, while FTSM is a Ultrashort Bond fund actively managed by First Trust. GOVT is passively managed, while FTSM is actively managed. Over the past 10 years, GOVT returned 0.87%/yr vs 2.54%/yr for FTSM. At a 0.27 correlation, their price movements are largely independent. GOVT charges 0.05%/yr vs 0.44%/yr for FTSM.
Performance
GOVT vs. FTSM - Performance Comparison
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Returns By Period
In the year-to-date period, GOVT achieves a -0.11% return, which is significantly lower than FTSM's 1.43% return. Over the past 10 years, GOVT has underperformed FTSM with an annualized return of 0.87%, while FTSM has yielded a comparatively higher 2.54% annualized return.
GOVT
- 1D
- -0.18%
- 1M
- 0.11%
- YTD
- -0.11%
- 6M
- -0.34%
- 1Y
- 3.87%
- 3Y*
- 2.83%
- 5Y*
- -0.45%
- 10Y*
- 0.87%
FTSM
- 1D
- -0.05%
- 1M
- 0.33%
- YTD
- 1.43%
- 6M
- 1.77%
- 1Y
- 4.16%
- 3Y*
- 4.84%
- 5Y*
- 3.45%
- 10Y*
- 2.54%
GOVT vs. FTSM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
GOVT iShares U.S. Treasury Bond ETF | -0.11% | 3.77% | 2.95% | 4.17% | -13.39% | -1.11% | 7.28% | 7.36% | 0.26% | 2.19% |
FTSM First Trust Enhanced Short Maturity ETF | 1.43% | 4.66% | 5.22% | 5.12% | 1.02% | -0.01% | 1.12% | 2.82% | 1.94% | 1.57% |
Correlation
The correlation between GOVT and FTSM 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, GOVT and FTSM 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
GOVT vs. FTSM — Risk / Return Rank
GOVT
FTSM
GOVT vs. FTSM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Treasury Bond ETF (GOVT) and First Trust Enhanced Short Maturity ETF (FTSM). 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.
| GOVT | FTSM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -7.70 | ||
| Sortino ratioReturn per unit of downside risk | -19.06 | ||
| Omega ratioGain probability vs. loss probability | 1.18 | 4.37 | -3.19 |
| Calmar ratioReturn relative to maximum drawdown | 1.36 | 35.73 | -34.37 |
| Martin ratioReturn relative to average drawdown | 4.01 | 177.67 | -173.66 |
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
| GOVT | FTSM | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.07 | 8.78 | -7.70 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.08 | 7.02 | -7.10 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.17 | 2.89 | -2.72 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.26 | 1.96 | -1.70 |
Drawdowns
GOVT vs. FTSM - Drawdown Comparison
The maximum GOVT drawdown since its inception was -19.07%, which is greater than FTSM's maximum drawdown of -4.12%. Use the drawdown chart below to compare losses from any high point for GOVT and FTSM.
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Drawdown Indicators
| GOVT | FTSM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -19.07% | -4.12% | -14.95% |
Max Drawdown (1Y)Largest decline over 1 year | -2.85% | -0.12% | -2.73% |
Max Drawdown (3Y)Largest decline over 3 years | -5.43% | -0.15% | -5.28% |
Max Drawdown (5Y)Largest decline over 5 years | -16.60% | -0.65% | -15.95% |
Max Drawdown (10Y)Largest decline over 10 years | -19.07% | -4.12% | -14.95% |
Current DrawdownCurrent decline from peak | -7.17% | -0.05% | -7.12% |
Average DrawdownAverage peak-to-trough decline | -5.25% | -0.22% | -5.03% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.97% | 0.02% | +0.95% |
Volatility
GOVT vs. FTSM - Volatility Comparison
iShares U.S. Treasury Bond ETF (GOVT) has a higher volatility of 1.09% compared to First Trust Enhanced Short Maturity ETF (FTSM) at 0.16%. This indicates that GOVT's price experiences larger fluctuations and is considered to be riskier than FTSM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| GOVT | FTSM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.09% | 0.16% | +0.93% |
Volatility (6M)Calculated over the trailing 6-month period | 2.51% | 0.35% | +2.16% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.63% | 0.48% | +3.15% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.04% | 0.49% | +5.55% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.22% | 0.88% | +4.34% |
GOVT vs. FTSM - Expense Ratio Comparison
GOVT has a 0.05% expense ratio, which is lower than FTSM's 0.44% expense ratio.
Dividends
GOVT vs. FTSM - Dividend Comparison
GOVT's dividend yield for the trailing twelve months is around 3.59%, less than FTSM's 4.16% 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 | 3.59% | 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
GOVT and FTSM 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 (1.09%) compared to FTSM (0.16%). In terms of maximum drawdown, GOVT dropped -19.07% vs FTSM's -4.12%.
On 10-year performance, FTSM leads with 2.54% vs 0.87% 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 2.54% return vs 0.87%. 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 3.59% for GOVT.
GOVT is categorized as Government Bonds, while FTSM is Ultrashort Bond. They also come from different issuers: iShares and First Trust. Their fees differ too: 0.05% for GOVT and 0.44% for FTSM.
FTSM currently has the higher Sharpe Ratio (8.78 vs 1.07), 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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