LUV vs. SHV
LUV (Southwest Airlines Co.) is a stock, while SHV (iShares 0-1 Year Treasury Bond ETF) is Government Bonds fund tracking the ICE Short US Treasury Securities Index. Over the past 10 years, LUV returned 3.84%/yr vs 2.23%/yr for SHV. At a correlation of -0.06, they often move in opposite directions.
Performance
LUV vs. SHV - Performance Comparison
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Returns By Period
In the year-to-date period, LUV achieves a 20.59% return, which is significantly higher than SHV's 1.60% return. Over the past 10 years, LUV has outperformed SHV with an annualized return of 3.84%, while SHV has yielded a comparatively lower 2.23% annualized return.
LUV
- 1D
- 1.73%
- 1M
- 21.45%
- YTD
- 20.59%
- 6M
- 20.45%
- 1Y
- 57.90%
- 3Y*
- 15.83%
- 5Y*
- -0.40%
- 10Y*
- 3.84%
SHV
- 1D
- 0.02%
- 1M
- 0.26%
- YTD
- 1.60%
- 6M
- 1.70%
- 1Y
- 3.83%
- 3Y*
- 4.61%
- 5Y*
- 3.35%
- 10Y*
- 2.23%
LUV vs. SHV - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
LUV Southwest Airlines Co. | 20.59% | 25.62% | 19.11% | -11.82% | -21.41% | -8.09% | -13.32% | 17.72% | -28.21% | 32.40% |
SHV iShares 0-1 Year Treasury Bond ETF | 1.60% | 4.21% | 5.12% | 5.04% | 0.94% | -0.10% | 0.81% | 2.36% | 1.72% | 0.67% |
Correlation
The correlation between LUV and SHV is 0.18, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.18 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.07 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.02 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.01 |
Correlation (All Time) Calculated using the full available price history since Jan 11, 2007 | -0.06 |
The correlation between LUV and SHV shifts across timeframes, from -0.06 (all time) to 0.18 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
LUV vs. SHV — Risk / Return Rank
LUV
SHV
LUV vs. SHV - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Southwest Airlines Co. (LUV) and iShares 0-1 Year Treasury Bond ETF (SHV). 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.
| LUV | SHV | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -17.27 | ||
| Sortino ratioReturn per unit of downside risk | -95.98 | ||
| Omega ratioGain probability vs. loss probability | 1.25 | 35.59 | -34.34 |
| Calmar ratioReturn relative to maximum drawdown | 1.74 | 141.48 | -139.74 |
| Martin ratioReturn relative to average drawdown | 3.44 | 1,585.41 | -1,581.97 |
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Drawdowns
LUV vs. SHV - Drawdown Comparison
The maximum LUV drawdown since its inception was -78.25%, which is greater than SHV's maximum drawdown of -0.45%. Use the drawdown chart below to compare losses from any high point for LUV and SHV.
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Drawdown Indicators
| LUV | SHV | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -78.25% | -0.45% | -77.80% |
Max Drawdown (1Y)Largest decline over 1 year | -33.49% | -0.03% | -33.46% |
Max Drawdown (3Y)Largest decline over 3 years | -42.93% | -0.03% | -42.90% |
Max Drawdown (5Y)Largest decline over 5 years | -58.75% | -0.38% | -58.37% |
Max Drawdown (10Y)Largest decline over 10 years | -64.76% | -0.45% | -64.31% |
Current DrawdownCurrent decline from peak | -16.88% | 0.00% | -16.88% |
Average DrawdownAverage peak-to-trough decline | -29.13% | -0.03% | -29.10% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 16.88% | 0.00% | +16.88% |
Volatility
LUV vs. SHV - Volatility Comparison
Southwest Airlines Co. (LUV) has a higher volatility of 12.52% compared to iShares 0-1 Year Treasury Bond ETF (SHV) at 0.07%. This indicates that LUV's price experiences larger fluctuations and is considered to be riskier than SHV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| LUV | SHV | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 12.52% | 0.07% | +12.45% |
Volatility (6M)Calculated over the trailing 6-month period | 35.29% | 0.13% | +35.16% |
Volatility (1Y)Calculated over the trailing 1-year period | 45.25% | 0.21% | +45.04% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 38.52% | 0.29% | +38.23% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 37.73% | 0.28% | +37.45% |
Dividends
LUV vs. SHV - Dividend Comparison
LUV's dividend yield for the trailing twelve months is around 1.46%, less than SHV's 3.83% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LUV Southwest Airlines Co. | 1.46% | 1.74% | 2.14% | 3.12% | 0.00% | 0.00% | 0.39% | 1.30% | 1.30% | 0.73% | 0.75% | 0.66% |
SHV iShares 0-1 Year Treasury Bond ETF | 3.83% | 4.09% | 5.02% | 4.73% | 1.39% | 0.00% | 0.74% | 2.19% | 1.66% | 0.72% | 0.34% | 0.03% |
Frequently Asked Questions
LUV and SHV have a correlation of 0.18, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
LUV has higher volatility (12.52%) compared to SHV (0.07%). In terms of maximum drawdown, LUV dropped -78.25% vs SHV's -0.45%.
SHV currently has the higher Sharpe Ratio (18.56 vs 1.29), 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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