IBND vs. ISHG

Last updated Jun 3, 2026

IBND (SPDR Bloomberg Barclays International Corporate Bond ETF) and ISHG (iShares 1-3 Year International Treasury Bond ETF) are both exchange-traded funds - IBND is a Corporate Bonds fund tracking the Bloomberg Global Aggregate x USD >$1B: Corporate Bond, while ISHG is a International Government Bonds fund tracking the S&P/Citigroup International Treasury Bond Index Ex-US 1-3 Year. Both are passively managed. Over the past 10 years, IBND returned 0.69%/yr vs -0.13%/yr for ISHG. A 0.76 correlation means they provide meaningful diversification when combined. IBND charges 0.50%/yr vs 0.35%/yr for ISHG.

Performance

IBND vs. ISHG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR Bloomberg Barclays International Corporate Bond ETF (IBND) and iShares 1-3 Year International Treasury Bond ETF (ISHG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IBND achieves a -0.64% return, which is significantly lower than ISHG's 0.51% return. Over the past 10 years, IBND has outperformed ISHG with an annualized return of 0.69%, while ISHG has yielded a comparatively lower -0.13% annualized return.

IBND

• 1D: 0.06%
• 1M: -0.05%
• YTD: -0.64%
• 6M: 0.40%
• 1Y: 2.89%
• 3Y*: 6.85%
• 5Y*: -1.32%
• 10Y*: 0.69%

ISHG

• 1D: -0.03%
• 1M: -0.48%
• YTD: 0.51%
• 6M: 1.72%
• 1Y: 2.50%
• 3Y*: 4.53%
• 5Y*: -1.06%
• 10Y*: -0.13%

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

IBND vs. ISHG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IBND SPDR Bloomberg Barclays International Corporate Bond ETF	-0.64%	16.17%	-2.81%	10.38%	-19.44%	-8.40%	11.50%	4.41%	-6.15%	14.84%
ISHG iShares 1-3 Year International Treasury Bond ETF	0.51%	13.31%	-4.16%	3.76%	-10.95%	-7.05%	7.47%	-0.64%	-3.54%	10.91%

Correlation

The correlation between IBND and ISHG is 0.90, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.90
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (5Y) Calculated over the trailing 5-year period	0.86
Correlation (10Y) Calculated over the trailing 10-year period	0.79
Correlation (All Time) Calculated using the full available price history since May 21, 2010	0.76

The correlation between IBND and ISHG shifts across timeframes, from 0.76 (all time) to 0.90 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

IBND vs. ISHG — Risk / Return Rank

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

IBND

IBND Risk / Return Rank: 14
IBND Sharpe Ratio Rank: 14
IBND Sortino Ratio Rank: 13
IBND Omega Ratio Rank: 13
IBND Calmar Ratio Rank: 15
IBND Martin Ratio Rank: 15

ISHG

ISHG Risk / Return Rank: 15
ISHG Sharpe Ratio Rank: 15
ISHG Sortino Ratio Rank: 14
ISHG Omega Ratio Rank: 13
ISHG Calmar Ratio Rank: 16
ISHG Martin Ratio Rank: 16

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.

IBND vs. ISHG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR Bloomberg Barclays International Corporate Bond ETF (IBND) and iShares 1-3 Year International Treasury Bond ETF (ISHG). 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.

	IBND	ISHG	Difference
Sharpe ratio Return per unit of total volatility	0.36	0.39	-0.02
Sortino ratio Return per unit of downside risk	0.58	0.62	-0.04
Omega ratio Gain probability vs. loss probability	1.07	1.07	0.00
Calmar ratio Return relative to maximum drawdown	0.51	0.64	-0.13
Martin ratio Return relative to average drawdown	1.41	1.63	-0.22
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IBND vs. ISHG - Sharpe Ratio Comparison

The current IBND Sharpe Ratio is 0.36, which is comparable to the ISHG Sharpe Ratio of 0.39. The chart below compares the historical Sharpe Ratios of IBND and ISHG, 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

	IBND	ISHG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.36	0.39	-0.02
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.14	-0.14	0.00
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.08	-0.02	+0.10
Sharpe Ratio (All Time) Calculated using the full available price history	0.16	-0.07	+0.23

Drawdowns

IBND vs. ISHG - Drawdown Comparison

The maximum IBND drawdown since its inception was -35.62%, roughly equal to the maximum ISHG drawdown of -37.24%. Use the drawdown chart below to compare losses from any high point for IBND and ISHG.

Drawdown Indicators

	IBND	ISHG	Difference
Max Drawdown Largest peak-to-trough decline	-35.62%	-37.24%	+1.62%
Max Drawdown (1Y) Largest decline over 1 year	-6.75%	-5.02%	-1.73%
Max Drawdown (3Y) Largest decline over 3 years	-9.18%	-8.21%	-0.97%
Max Drawdown (5Y) Largest decline over 5 years	-34.32%	-23.96%	-10.36%
Max Drawdown (10Y) Largest decline over 10 years	-35.62%	-25.56%	-10.06%
Current Drawdown Current decline from peak	-9.05%	-21.83%	+12.78%
Average Drawdown Average peak-to-trough decline	-10.64%	-18.43%	+7.79%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.45%	1.97%	+0.48%

Volatility

IBND vs. ISHG - Volatility Comparison

SPDR Bloomberg Barclays International Corporate Bond ETF (IBND) has a higher volatility of 2.05% compared to iShares 1-3 Year International Treasury Bond ETF (ISHG) at 1.60%. This indicates that IBND's price experiences larger fluctuations and is considered to be riskier than ISHG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IBND	ISHG	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.05%	1.60%	+0.45%
Volatility (6M) Calculated over the trailing 6-month period	6.13%	4.68%	+1.45%
Volatility (1Y) Calculated over the trailing 1-year period	7.98%	6.51%	+1.47%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	9.75%	7.58%	+2.17%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.94%	6.93%	+2.01%

IBND vs. ISHG - Expense Ratio Comparison

IBND has a 0.50% expense ratio, which is higher than ISHG's 0.35% expense ratio.

Dividends

IBND vs. ISHG - Dividend Comparison

IBND's dividend yield for the trailing twelve months is around 2.73%, more than ISHG's 1.44% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IBND SPDR Bloomberg Barclays International Corporate Bond ETF	2.73%	2.49%	2.61%	2.08%	0.54%	0.38%	0.45%	0.67%	0.71%	0.34%	0.01%	0.01%
ISHG iShares 1-3 Year International Treasury Bond ETF	1.44%	1.45%	2.56%	0.18%	0.00%	1.29%	0.00%	0.00%	1.80%	0.46%	0.00%	0.09%

Frequently Asked Questions

Can I hold both IBND and ISHG in my portfolio?

With a correlation of 0.90, IBND and ISHG move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, IBND or ISHG?

IBND has higher volatility (2.05%) compared to ISHG (1.60%). In terms of maximum drawdown, IBND dropped -35.62% vs ISHG's -37.24%.

Which ETF is better, IBND or ISHG?

On 10-year performance, IBND leads with 0.69% vs -0.13% for ISHG. On fees, ISHG is cheaper at 0.35% per year. On volatility, ISHG has been the lower-risk option at 1.60%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IBND or ISHG?

Over the 10-year period, IBND has performed better with a 0.69% return vs -0.13%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IBND or ISHG?

ISHG is cheaper with a 0.35% expense ratio, compared with 0.50% for IBND.

Which ETF pays a higher dividend yield, IBND or ISHG?

IBND has the higher dividend yield at 2.73%, compared with 1.44% for ISHG.

What is the main difference between IBND and ISHG?

IBND is categorized as Corporate Bonds, while ISHG is International Government Bonds. IBND tracks Bloomberg Global Aggregate x USD >$1B: Corporate Bond, while ISHG tracks S&P/Citigroup International Treasury Bond Index Ex-US 1-3 Year. They also come from different issuers: State Street and iShares. Their fees differ too: 0.50% for IBND and 0.35% for ISHG.

Which has better risk-adjusted returns?

ISHG currently has the higher Sharpe Ratio (0.39 vs 0.36), 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.