SHAG vs. ZTWO
SHAG (WisdomTree Yield Enhanced U.S. Short-Term Aggregate Bond ETF) and ZTWO (F/M 2-Year Investment Grade Corporate Bond ETF) are both Short-Term Bond funds - SHAG tracks the Bloomberg U.S. Short Aggregate Enhanced Yield Index while ZTWO tracks the ICE 2-Year US Target Maturity Corporate Index - Benchmark TR Gross. Both are passively managed. Over the past year, SHAG returned 3.48% vs 3.70% for ZTWO. Their correlation of 0.84 suggests significant overlap in exposure. SHAG charges 0.12%/yr vs 0.15%/yr for ZTWO.
Performance
SHAG vs. ZTWO - Performance Comparison
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Returns By Period
In the year-to-date period, SHAG achieves a 0.38% return, which is significantly lower than ZTWO's 0.87% return.
SHAG
- 1D
- -0.09%
- 1M
- 0.19%
- YTD
- 0.38%
- 6M
- 0.52%
- 1Y
- 3.48%
- 3Y*
- 4.73%
- 5Y*
- 1.62%
- 10Y*
- —
ZTWO
- 1D
- -0.10%
- 1M
- 0.20%
- YTD
- 0.87%
- 6M
- 1.04%
- 1Y
- 3.70%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
SHAG vs. ZTWO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
SHAG WisdomTree Yield Enhanced U.S. Short-Term Aggregate Bond ETF | 0.38% | 6.27% | 0.33% |
ZTWO F/M 2-Year Investment Grade Corporate Bond ETF | 0.87% | 5.49% | 0.36% |
Correlation
The correlation between SHAG and ZTWO is 0.84, 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 | 0.84 |
Correlation (All Time) Calculated using the full available price history since Dec 19, 2024 | 0.84 |
The correlation between SHAG and ZTWO has been stable across timeframes, ranging from 0.84 to 0.84 - a consistent structural relationship.
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Return for Risk
SHAG vs. ZTWO — Risk / Return Rank
SHAG
ZTWO
SHAG vs. ZTWO - 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 F/M 2-Year Investment Grade Corporate Bond ETF (ZTWO). 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.
| SHAG | ZTWO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.89 | ||
| Sortino ratioReturn per unit of downside risk | -1.47 | ||
| Omega ratioGain probability vs. loss probability | 1.36 | 1.56 | -0.20 |
| Calmar ratioReturn relative to maximum drawdown | 2.54 | 3.98 | -1.44 |
| Martin ratioReturn relative to average drawdown | 8.61 | 18.68 | -10.08 |
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Drawdowns
SHAG vs. ZTWO - Drawdown Comparison
The maximum SHAG drawdown since its inception was -9.62%, which is greater than ZTWO's maximum drawdown of -0.93%. Use the drawdown chart below to compare losses from any high point for SHAG and ZTWO.
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Drawdown Indicators
| SHAG | ZTWO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -9.62% | -0.93% | -8.69% |
Max Drawdown (1Y)Largest decline over 1 year | -1.38% | -0.93% | -0.45% |
Max Drawdown (3Y)Largest decline over 3 years | -1.38% | — | — |
Max Drawdown (5Y)Largest decline over 5 years | -9.62% | — | — |
Current DrawdownCurrent decline from peak | -0.64% | -0.28% | -0.36% |
Average DrawdownAverage peak-to-trough decline | -1.87% | -0.10% | -1.77% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.41% | 0.20% | +0.21% |
Volatility
SHAG vs. ZTWO - Volatility Comparison
WisdomTree Yield Enhanced U.S. Short-Term Aggregate Bond ETF (SHAG) has a higher volatility of 0.62% compared to F/M 2-Year Investment Grade Corporate Bond ETF (ZTWO) at 0.46%. This indicates that SHAG's price experiences larger fluctuations and is considered to be riskier than ZTWO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SHAG | ZTWO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.62% | 0.46% | +0.16% |
Volatility (6M)Calculated over the trailing 6-month period | 1.40% | 1.02% | +0.38% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.86% | 1.34% | +0.52% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.76% | 1.50% | +1.26% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.58% | 1.50% | +1.08% |
SHAG vs. ZTWO - Expense Ratio Comparison
SHAG has a 0.12% expense ratio, which is lower than ZTWO'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
SHAG vs. ZTWO - Dividend Comparison
SHAG's dividend yield for the trailing twelve months is around 4.28%, more than ZTWO's 4.12% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
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% |
ZTWO F/M 2-Year Investment Grade Corporate Bond ETF | 4.12% | 4.31% | 0.39% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
SHAG and ZTWO have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SHAG has higher volatility (0.62%) compared to ZTWO (0.46%). In terms of maximum drawdown, SHAG dropped -9.62% vs ZTWO's -0.93%.
On 1-year performance, ZTWO leads with 3.70% vs 3.48% for SHAG. On fees, SHAG is cheaper at 0.12% per year. On volatility, ZTWO has been the lower-risk option at 0.46%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, ZTWO has performed better with a 3.70% return vs 3.48%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SHAG is cheaper with a 0.12% expense ratio, compared with 0.15% for ZTWO.
SHAG has the higher dividend yield at 4.28%, compared with 4.12% for ZTWO.
SHAG tracks Bloomberg U.S. Short Aggregate Enhanced Yield Index, while ZTWO tracks ICE 2-Year US Target Maturity Corporate Index - Benchmark TR Gross. They also come from different issuers: WisdomTree and F/m. Their fees differ too: 0.12% for SHAG and 0.15% for ZTWO.
ZTWO currently has the higher Sharpe Ratio (2.78 vs 1.88), 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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