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PCY vs. SHY
Performance
Return for Risk
Drawdowns
Volatility
Dividends

PCY vs. SHY

Last updated Jun 9, 2026

PCY (Invesco Emerging Markets Sovereign Debt ETF) and SHY (iShares 1-3 Year Treasury Bond ETF) are both exchange-traded funds - PCY is a Emerging Markets Bonds fund tracking the DB Emerging Market USD Liquid Balanced 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, PCY returned 2.55%/yr vs 1.63%/yr for SHY. At a 0.23 correlation, their price movements are largely independent. PCY charges 0.50%/yr vs 0.15%/yr for SHY.

Performance

PCY vs. SHY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco Emerging Markets Sovereign Debt ETF (PCY) and iShares 1-3 Year Treasury Bond ETF (SHY). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, PCY achieves a 1.26% return, which is significantly higher than SHY's 0.34% return. Over the past 10 years, PCY has outperformed SHY with an annualized return of 2.55%, while SHY has yielded a comparatively lower 1.63% annualized return.

PCY

1D
-0.33%
1M
-0.74%
YTD
1.26%
6M
1.62%
1Y
13.56%
3Y*
10.81%
5Y*
0.99%
10Y*
2.55%

SHY

1D
0.05%
1M
-0.19%
YTD
0.34%
6M
0.74%
1Y
3.33%
3Y*
4.04%
5Y*
1.70%
10Y*
1.63%
*Multi-year figures are annualized to reflect compound growth (CAGR)

PCY vs. SHY - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
PCY
Invesco Emerging Markets Sovereign Debt ETF		1.26%16.31%2.55%18.48%-24.47%-4.30%2.29%17.66%-6.16%9.71%
SHY
iShares 1-3 Year Treasury Bond ETF		0.34%4.95%3.92%4.16%-3.88%-0.71%3.03%3.38%1.46%0.26%

Correlation

The correlation between PCY and SHY is 0.57, 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

0.57

Correlation (3Y)
Calculated over the trailing 3-year period

0.55

Correlation (5Y)
Calculated over the trailing 5-year period

0.51

Correlation (10Y)
Calculated over the trailing 10-year period

0.38

Correlation (All Time)
Calculated using the full available price history since Oct 11, 2007

0.23

Over the past year, PCY and SHY have become more correlated (0.57) than their long-term average of 0.23, meaning their price movements have been converging.

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Invesco Emerging Markets Sovereign Debt ETF

iShares 1-3 Year Treasury Bond ETF

Often compared with PCY:
PCY vs. EMBPCY vs. VWOBPCY vs. ELDPCY vs. EMHYPCY vs. DFEMXPCY vs. CMFPCY vs. FEMB
Often compared with SHY:
SHY vs. SGOVSHY vs. VGSHSHY vs. SHVSHY vs. TLTSHY vs. IEFSHY vs. BILSHY vs. BSV

Return for Risk

PCY vs. SHY — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
PCY
PCY Risk / Return Rank: 5959
Overall Rank
PCY Sharpe Ratio Rank: 6161
Sharpe Ratio Rank
PCY Sortino Ratio Rank: 6262
Sortino Ratio Rank
PCY Omega Ratio Rank: 6161
Omega Ratio Rank
PCY Calmar Ratio Rank: 5252
Calmar Ratio Rank
PCY Martin Ratio Rank: 5858
Martin Ratio Rank
SHY
SHY Risk / Return Rank: 8686
Overall Rank
SHY Sharpe Ratio Rank: 8585
Sharpe Ratio Rank
SHY Sortino Ratio Rank: 9292
Sortino Ratio Rank
SHY Omega Ratio Rank: 8989
Omega Ratio Rank
SHY Calmar Ratio Rank: 8080
Calmar Ratio Rank
SHY Martin Ratio Rank: 8282
Martin Ratio Rank
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.

PCY vs. SHY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco Emerging Markets Sovereign Debt ETF (PCY) 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.

PCYSHYDifference
Sharpe ratioReturn per unit of total volatility
1.83
2.51

-0.68

Sortino ratioReturn per unit of downside risk
2.61
4.11

-1.50

Omega ratioGain probability vs. loss probability

1.34

1.51

-0.18

Calmar ratioReturn relative to maximum drawdown

2.31

3.76

-1.46

Martin ratioReturn relative to average drawdown

9.34

15.12

-5.79

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PCY vs. SHY - Sharpe Ratio Comparison

The current PCY Sharpe Ratio is 1.83, which is comparable to the SHY Sharpe Ratio of 2.51. The chart below compares the historical Sharpe Ratios of PCY and SHY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

PCYSHYDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.83

2.51

-0.68

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.08

0.86

-0.78

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.20

1.04

-0.84

Sharpe Ratio (All Time)

Calculated using the full available price history

0.29

1.28

-0.99

Drawdowns

PCY vs. SHY - Drawdown Comparison

The maximum PCY drawdown since its inception was -49.13%, which is greater than SHY's maximum drawdown of -5.71%. Use the drawdown chart below to compare losses from any high point for PCY and SHY.

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Drawdown Indicators

PCYSHYDifference

Max Drawdown

Largest peak-to-trough decline

-49.13%

-5.71%

-43.42%

Max Drawdown (1Y)

Largest decline over 1 year

-5.91%

-0.89%

-5.02%

Max Drawdown (3Y)

Largest decline over 3 years

-11.52%

-0.97%

-10.55%

Max Drawdown (5Y)

Largest decline over 5 years

-37.17%

-5.71%

-31.46%

Max Drawdown (10Y)

Largest decline over 10 years

-37.78%

-5.71%

-32.07%

Current Drawdown

Current decline from peak

-1.23%

-0.39%

-0.84%

Average Drawdown

Average peak-to-trough decline

-6.97%

-0.52%

-6.45%

Ulcer Index

Depth and duration of drawdowns from previous peaks

1.46%

0.22%

+1.24%

Volatility

PCY vs. SHY - Volatility Comparison

Invesco Emerging Markets Sovereign Debt ETF (PCY) has a higher volatility of 2.20% compared to iShares 1-3 Year Treasury Bond ETF (SHY) at 0.38%. This indicates that PCY'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

PCYSHYDifference

Volatility (1M)

Calculated over the trailing 1-month period

2.20%

0.38%

+1.82%

Volatility (6M)

Calculated over the trailing 6-month period

5.83%

0.95%

+4.88%

Volatility (1Y)

Calculated over the trailing 1-year period

7.46%

1.33%

+6.13%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

13.17%

1.99%

+11.18%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

12.95%

1.57%

+11.38%

PCY vs. SHY - Expense Ratio Comparison

PCY has a 0.50% expense ratio, which is higher than SHY's 0.15% expense ratio.

Dividends

PCY vs. SHY - Dividend Comparison

PCY's dividend yield for the trailing twelve months is around 5.91%, more than SHY's 3.69% yield.

PositionTTM20252024202320222021202020192018201720162015
PCY
Invesco Emerging Markets Sovereign Debt ETF		5.91%5.93%6.65%6.48%6.81%4.80%4.45%4.78%4.93%4.80%5.19%5.46%
SHY
iShares 1-3 Year Treasury Bond ETF		3.69%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

PCY and SHY have a correlation of 0.57, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

PCY has higher volatility (2.20%) compared to SHY (0.38%). In terms of maximum drawdown, PCY dropped -49.13% vs SHY's -5.71%.

On 10-year performance, PCY leads with 2.55% vs 1.63% for SHY. On fees, SHY is cheaper at 0.15% per year. On volatility, SHY has been the lower-risk option at 0.38%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, PCY has performed better with a 2.55% return vs 1.63%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

SHY is cheaper with a 0.15% expense ratio, compared with 0.50% for PCY.

PCY has the higher dividend yield at 5.91%, compared with 3.69% for SHY.

PCY is categorized as Emerging Markets Bonds, while SHY is Government Bonds. PCY tracks DB Emerging Market USD Liquid Balanced Index, while SHY tracks ICE US Treasury 1-3 Year Index. They also come from different issuers: Invesco and iShares. Their fees differ too: 0.50% for PCY and 0.15% for SHY.

SHY currently has the higher Sharpe Ratio (2.51 vs 1.83), 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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