SHAG vs. SCHO

Last updated Jun 5, 2026

SHAG (WisdomTree Yield Enhanced U.S. Short-Term Aggregate Bond ETF) and SCHO (Schwab Short-Term U.S. Treasury ETF) are both exchange-traded funds - SHAG is a Short-Term Bond fund tracking the Bloomberg U.S. Short Aggregate Enhanced Yield Index, while SCHO is a Government Bonds fund tracking the Bloomberg U.S. Treasury 1-3 Year Index. Both are passively managed. Over the past 5 years, SHAG returned 1.61%/yr vs 1.82%/yr for SCHO. A 0.73 correlation means they provide meaningful diversification when combined. SHAG charges 0.12%/yr vs 0.03%/yr for SCHO.

Performance

SHAG vs. SCHO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree Yield Enhanced U.S. Short-Term Aggregate Bond ETF (SHAG) and Schwab Short-Term U.S. Treasury ETF (SCHO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with SHAG having a 0.48% return and SCHO slightly higher at 0.50%.

SHAG

• 1D: 0.07%
• 1M: 0.03%
• YTD: 0.48%
• 6M: 0.81%
• 1Y: 3.73%
• 3Y*: 4.72%
• 5Y*: 1.61%
• 10Y*: —

SCHO

• 1D: 0.08%
• 1M: 0.10%
• YTD: 0.50%
• 6M: 0.90%
• 1Y: 3.35%
• 3Y*: 4.16%
• 5Y*: 1.82%
• 10Y*: 1.72%

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

SHAG vs. SCHO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SHAG WisdomTree Yield Enhanced U.S. Short-Term Aggregate Bond ETF	0.48%	6.27%	4.30%	4.61%	-6.37%	-0.91%	4.70%	5.79%	0.80%	-0.11%
SCHO Schwab Short-Term U.S. Treasury ETF	0.50%	5.49%	3.65%	4.31%	-3.87%	-0.64%	3.11%	3.47%	1.37%	-0.46%

Correlation

The correlation between SHAG and SCHO is 0.83, 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	0.83
Correlation (3Y) Calculated over the trailing 3-year period	0.84
Correlation (5Y) Calculated over the trailing 5-year period	0.86
Correlation (All Time) Calculated using the full available price history since Aug 25, 2017	0.73

The correlation between SHAG and SCHO shifts across timeframes, from 0.73 (all time) to 0.86 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

SHAG vs. SCHO — Risk / Return Rank

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

SHAG

SHAG Risk / Return Rank: 63
SHAG Sharpe Ratio Rank: 63
SHAG Sortino Ratio Rank: 72
SHAG Omega Ratio Rank: 67
SHAG Calmar Ratio Rank: 55
SHAG Martin Ratio Rank: 56

SCHO

SCHO Risk / Return Rank: 82
SCHO Sharpe Ratio Rank: 77
SCHO Sortino Ratio Rank: 89
SCHO Omega Ratio Rank: 83
SCHO Calmar Ratio Rank: 78
SCHO Martin Ratio Rank: 83

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.

SHAG vs. SCHO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree Yield Enhanced U.S. Short-Term Aggregate Bond ETF (SHAG) and Schwab Short-Term U.S. Treasury ETF (SCHO). 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.

	SHAG	SCHO	Difference
Sharpe ratio: Return per unit of total volatility	2.05	2.46	-0.40
Sortino ratio: Return per unit of downside risk	3.21	4.01	-0.80
Omega ratio: Gain probability vs. loss probability	1.40	1.49	-0.10
Calmar ratio: Return relative to maximum drawdown	2.72	3.91	-1.19
Martin ratio: Return relative to average drawdown	9.70	16.82	-7.13
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SHAG vs. SCHO - Sharpe Ratio Comparison

The current SHAG Sharpe Ratio is 2.05, which is comparable to the SCHO Sharpe Ratio of 2.46. The chart below compares the historical Sharpe Ratios of SHAG and SCHO, 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

	SHAG	SCHO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.05	2.46	-0.40
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.59	0.92	-0.33
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	1.11	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.84	1.00	-0.16

Drawdowns

SHAG vs. SCHO - Drawdown Comparison

The maximum SHAG drawdown since its inception was -9.62%, which is greater than SCHO's maximum drawdown of -5.69%. Use the drawdown chart below to compare losses from any high point for SHAG and SCHO.

Drawdown Indicators

	SHAG	SCHO	Difference
Max Drawdown Largest peak-to-trough decline	-9.62%	-5.69%	-3.93%
Max Drawdown (1Y) Largest decline over 1 year	-1.38%	-0.86%	-0.52%
Max Drawdown (3Y) Largest decline over 3 years	-1.38%	-0.98%	-0.40%
Max Drawdown (5Y) Largest decline over 5 years	-9.62%	-5.69%	-3.93%
Max Drawdown (10Y) Largest decline over 10 years	—	-5.69%	—
Current Drawdown Current decline from peak	-0.54%	-0.18%	-0.36%
Average Drawdown Average peak-to-trough decline	-1.87%	-0.61%	-1.26%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.39%	0.20%	+0.19%

Volatility

SHAG vs. SCHO - Volatility Comparison

WisdomTree Yield Enhanced U.S. Short-Term Aggregate Bond ETF (SHAG) has a higher volatility of 0.60% compared to Schwab Short-Term U.S. Treasury ETF (SCHO) at 0.42%. This indicates that SHAG's price experiences larger fluctuations and is considered to be riskier than SCHO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SHAG	SCHO	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.60%	0.42%	+0.18%
Volatility (6M) Calculated over the trailing 6-month period	1.31%	0.91%	+0.40%
Volatility (1Y) Calculated over the trailing 1-year period	1.84%	1.37%	+0.47%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.75%	1.98%	+0.77%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.58%	1.56%	+1.02%

SHAG vs. SCHO - Expense Ratio Comparison

SHAG has a 0.12% expense ratio, which is higher than SCHO's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

SHAG vs. SCHO - Dividend Comparison

SHAG's dividend yield for the trailing twelve months is around 4.28%, more than SCHO's 3.90% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHO Schwab Short-Term U.S. Treasury ETF	3.90%	4.06%	4.29%	3.76%	1.34%	0.41%	1.27%	2.27%	1.60%	1.12%	0.82%	0.68%
SHAG WisdomTree Yield Enhanced U.S. Short-Term Aggregate Bond ETF	4.28%	4.33%	4.49%	3.04%	1.38%	0.92%	2.33%	2.71%	2.56%	0.77%	0.00%	0.00%

Frequently Asked Questions

Can I hold both SHAG and SCHO in my portfolio?

SHAG and SCHO have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SHAG or SCHO?

SHAG has higher volatility (0.60%) compared to SCHO (0.42%). In terms of maximum drawdown, SHAG dropped -9.62% vs SCHO's -5.69%.

Which ETF is better, SHAG or SCHO?

On 5-year performance, SCHO leads with 1.82% vs 1.61% for SHAG. On fees, SCHO is cheaper at 0.03% per year. On volatility, SCHO has been the lower-risk option at 0.42%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SHAG or SCHO?

Over the 5-year period, SCHO has performed better with a 1.82% return vs 1.61%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SHAG or SCHO?

SCHO is cheaper with a 0.03% expense ratio, compared with 0.12% for SHAG.

Which ETF pays a higher dividend yield, SHAG or SCHO?

SHAG has the higher dividend yield at 4.28%, compared with 3.90% for SCHO.

What is the main difference between SHAG and SCHO?

SHAG is categorized as Short-Term Bond, while SCHO is Government Bonds. SHAG tracks Bloomberg U.S. Short Aggregate Enhanced Yield Index, while SCHO tracks Bloomberg U.S. Treasury 1-3 Year Index. They also come from different issuers: WisdomTree and Charles Schwab. Their fees differ too: 0.12% for SHAG and 0.03% for SCHO.

Which has better risk-adjusted returns?

SCHO currently has the higher Sharpe Ratio (2.46 vs 2.05), 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.