IGSB vs. SHY
IGSB (iShares Short-Term Corporate Bond ETF) and SHY (iShares 1-3 Year Treasury Bond ETF) are both exchange-traded funds - IGSB is a Corporate Bonds fund tracking the ICE BofAML 1-5 Year US Corporate Index, 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, IGSB returned 2.74%/yr vs 1.65%/yr for SHY. A 0.61 correlation means they provide meaningful diversification when combined. IGSB charges 0.06%/yr vs 0.15%/yr for SHY.
Performance
IGSB vs. SHY - Performance Comparison
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Returns By Period
In the year-to-date period, IGSB achieves a 0.93% return, which is significantly higher than SHY's 0.60% return. Over the past 10 years, IGSB has outperformed SHY with an annualized return of 2.74%, while SHY has yielded a comparatively lower 1.65% annualized return.
IGSB
- 1D
- 0.06%
- 1M
- 0.61%
- YTD
- 0.93%
- 6M
- 1.24%
- 1Y
- 4.76%
- 3Y*
- 5.77%
- 5Y*
- 2.49%
- 10Y*
- 2.74%
SHY
- 1D
- 0.05%
- 1M
- 0.36%
- YTD
- 0.60%
- 6M
- 0.79%
- 1Y
- 3.34%
- 3Y*
- 4.16%
- 5Y*
- 1.78%
- 10Y*
- 1.65%
IGSB vs. SHY - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IGSB iShares Short-Term Corporate Bond ETF | 0.93% | 6.96% | 4.97% | 6.40% | -5.63% | -0.56% | 5.37% | 7.11% | 1.25% | 1.27% |
SHY iShares 1-3 Year Treasury Bond ETF | 0.60% | 4.95% | 3.92% | 4.16% | -3.88% | -0.71% | 3.03% | 3.38% | 1.46% | 0.26% |
Correlation
The correlation between IGSB and SHY is 0.88, 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 | 0.88 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.91 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.89 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.79 |
Correlation (All Time) Calculated using the full available price history since Jan 11, 2007 | 0.61 |
Over the past year, IGSB and SHY have become more correlated (0.88) than their long-term average of 0.61, meaning their price movements have been converging.
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Return for Risk
IGSB vs. SHY — Risk / Return Rank
IGSB
SHY
IGSB vs. SHY - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Short-Term Corporate Bond ETF (IGSB) 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.
| IGSB | SHY | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.03 | ||
| Sortino ratioReturn per unit of downside risk | -0.24 | ||
| Omega ratioGain probability vs. loss probability | 1.51 | 1.52 | -0.01 |
| Calmar ratioReturn relative to maximum drawdown | 3.28 | 3.78 | -0.50 |
| Martin ratioReturn relative to average drawdown | 13.21 | 15.00 | -1.79 |
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Drawdowns
IGSB vs. SHY - Drawdown Comparison
The maximum IGSB drawdown since its inception was -13.38%, which is greater than SHY's maximum drawdown of -5.71%. Use the drawdown chart below to compare losses from any high point for IGSB and SHY.
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Drawdown Indicators
| IGSB | SHY | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -13.38% | -5.71% | -7.67% |
Max Drawdown (1Y)Largest decline over 1 year | -1.46% | -0.89% | -0.57% |
Max Drawdown (3Y)Largest decline over 3 years | -1.46% | -0.97% | -0.49% |
Max Drawdown (5Y)Largest decline over 5 years | -9.46% | -5.71% | -3.75% |
Max Drawdown (10Y)Largest decline over 10 years | -13.38% | -5.71% | -7.67% |
Current DrawdownCurrent decline from peak | -0.11% | -0.14% | +0.03% |
Average DrawdownAverage peak-to-trough decline | -0.85% | -0.52% | -0.33% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.36% | 0.22% | +0.14% |
Volatility
IGSB vs. SHY - Volatility Comparison
iShares Short-Term Corporate Bond ETF (IGSB) has a higher volatility of 0.66% compared to iShares 1-3 Year Treasury Bond ETF (SHY) at 0.40%. This indicates that IGSB'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
| IGSB | SHY | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.66% | 0.40% | +0.26% |
Volatility (6M)Calculated over the trailing 6-month period | 1.46% | 0.95% | +0.51% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.92% | 1.33% | +0.59% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.94% | 1.99% | +0.95% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.47% | 1.57% | +1.90% |
IGSB vs. SHY - Expense Ratio Comparison
IGSB has a 0.06% expense ratio, which is lower than SHY's 0.15% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
IGSB vs. SHY - Dividend Comparison
IGSB's dividend yield for the trailing twelve months is around 4.57%, more than SHY's 3.68% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IGSB iShares Short-Term Corporate Bond ETF | 4.57% | 4.44% | 4.02% | 3.26% | 2.07% | 1.82% | 2.36% | 3.06% | 2.46% | 1.65% | 1.45% | 1.18% |
SHY iShares 1-3 Year Treasury Bond ETF | 3.68% | 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
IGSB and SHY have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IGSB has higher volatility (0.66%) compared to SHY (0.40%). In terms of maximum drawdown, IGSB dropped -13.38% vs SHY's -5.71%.
On 10-year performance, IGSB leads with 2.74% vs 1.65% for SHY. On fees, IGSB is cheaper at 0.06% per year. On volatility, SHY has been the lower-risk option at 0.40%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IGSB has performed better with a 2.74% return vs 1.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IGSB is cheaper with a 0.06% expense ratio, compared with 0.15% for SHY.
IGSB has the higher dividend yield at 4.57%, compared with 3.68% for SHY.
IGSB is categorized as Corporate Bonds, while SHY is Government Bonds. IGSB tracks ICE BofAML 1-5 Year US Corporate Index, while SHY tracks ICE US Treasury 1-3 Year Index. Their fees differ too: 0.06% for IGSB and 0.15% for SHY.
SHY currently has the higher Sharpe Ratio (2.53 vs 2.50), 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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