SHY vs. AAXJ
SHY (iShares 1-3 Year Treasury Bond ETF) and AAXJ (iShares MSCI All Country Asia ex-Japan ETF) are both exchange-traded funds - SHY is a Government Bonds fund tracking the ICE US Treasury 1-3 Year Index, while AAXJ is a Asia Pacific Equities fund tracking the MSCI All Country Asia ex Japan Index. Both are passively managed. Over the past 10 years, SHY returned 1.65%/yr vs 10.34%/yr for AAXJ. At a correlation of -0.11, they often move in opposite directions. SHY charges 0.15%/yr vs 0.68%/yr for AAXJ.
Performance
SHY vs. AAXJ - Performance Comparison
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Returns By Period
In the year-to-date period, SHY achieves a 0.55% return, which is significantly lower than AAXJ's 26.46% return. Over the past 10 years, SHY has underperformed AAXJ with an annualized return of 1.65%, while AAXJ has yielded a comparatively higher 10.34% annualized return.
SHY
- 1D
- -0.02%
- 1M
- 0.19%
- YTD
- 0.55%
- 6M
- 0.80%
- 1Y
- 3.29%
- 3Y*
- 4.15%
- 5Y*
- 1.74%
- 10Y*
- 1.65%
AAXJ
- 1D
- 0.46%
- 1M
- 0.61%
- YTD
- 26.46%
- 6M
- 29.76%
- 1Y
- 48.69%
- 3Y*
- 22.11%
- 5Y*
- 6.41%
- 10Y*
- 10.34%
SHY vs. AAXJ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SHY iShares 1-3 Year Treasury Bond ETF | 0.55% | 4.95% | 3.92% | 4.16% | -3.88% | -0.71% | 3.03% | 3.38% | 1.46% | 0.26% |
AAXJ iShares MSCI All Country Asia ex-Japan ETF | 26.46% | 31.53% | 10.41% | 4.79% | -20.35% | -5.73% | 23.35% | 17.93% | -15.04% | 41.76% |
Correlation
The correlation between SHY and AAXJ is 0.23, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.23 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.15 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.11 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.01 |
Correlation (All Time) Calculated using the full available price history since Aug 15, 2008 | -0.11 |
The correlation between SHY and AAXJ shifts across timeframes, from -0.11 (all time) to 0.23 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
SHY vs. AAXJ — Risk / Return Rank
SHY
AAXJ
SHY vs. AAXJ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 1-3 Year Treasury Bond ETF (SHY) and iShares MSCI All Country Asia ex-Japan ETF (AAXJ). 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.
| SHY | AAXJ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.32 | ||
| Sortino ratioReturn per unit of downside risk | +1.24 | ||
| Omega ratioGain probability vs. loss probability | 1.50 | 1.40 | +0.10 |
| Calmar ratioReturn relative to maximum drawdown | 3.64 | 3.41 | +0.22 |
| Martin ratioReturn relative to average drawdown | 14.45 | 12.55 | +1.90 |
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Drawdowns
SHY vs. AAXJ - Drawdown Comparison
The maximum SHY drawdown since its inception was -5.71%, smaller than the maximum AAXJ drawdown of -49.37%. Use the drawdown chart below to compare losses from any high point for SHY and AAXJ.
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Drawdown Indicators
| SHY | AAXJ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.71% | -49.37% | +43.66% |
Max Drawdown (1Y)Largest decline over 1 year | -0.89% | -13.66% | +12.77% |
Max Drawdown (3Y)Largest decline over 3 years | -0.97% | -19.74% | +18.77% |
Max Drawdown (5Y)Largest decline over 5 years | -5.71% | -40.64% | +34.93% |
Max Drawdown (10Y)Largest decline over 10 years | -5.71% | -44.52% | +38.81% |
Current DrawdownCurrent decline from peak | -0.18% | -4.62% | +4.44% |
Average DrawdownAverage peak-to-trough decline | -0.52% | -14.01% | +13.49% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.22% | 3.71% | -3.49% |
Volatility
SHY vs. AAXJ - Volatility Comparison
The current volatility for iShares 1-3 Year Treasury Bond ETF (SHY) is 0.40%, while iShares MSCI All Country Asia ex-Japan ETF (AAXJ) has a volatility of 11.46%. This indicates that SHY experiences smaller price fluctuations and is considered to be less risky than AAXJ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SHY | AAXJ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.40% | 11.46% | -11.06% |
Volatility (6M)Calculated over the trailing 6-month period | 0.95% | 19.71% | -18.76% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.33% | 22.12% | -20.79% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.99% | 20.32% | -18.33% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.57% | 20.42% | -18.85% |
SHY vs. AAXJ - Expense Ratio Comparison
SHY has a 0.15% expense ratio, which is lower than AAXJ's 0.68% expense ratio.
Dividends
SHY vs. AAXJ - Dividend Comparison
SHY's dividend yield for the trailing twelve months is around 3.68%, more than AAXJ's 1.43% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AAXJ iShares MSCI All Country Asia ex-Japan ETF | 1.43% | 1.81% | 1.86% | 1.95% | 1.74% | 2.21% | 1.06% | 1.83% | 2.10% | 1.99% | 1.77% | 2.44% |
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
SHY and AAXJ have a correlation of 0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
AAXJ has higher volatility (11.46%) compared to SHY (0.40%). In terms of maximum drawdown, SHY dropped -5.71% vs AAXJ's -49.37%.
On 10-year performance, AAXJ leads with 10.34% vs 1.65% for SHY. On fees, SHY is cheaper at 0.15% 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, AAXJ has performed better with a 10.34% return vs 1.65%. 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 0.68% for AAXJ.
SHY has the higher dividend yield at 3.68%, compared with 1.43% for AAXJ.
SHY is categorized as Government Bonds, while AAXJ is Asia Pacific Equities. SHY tracks ICE US Treasury 1-3 Year Index, while AAXJ tracks MSCI All Country Asia ex Japan Index. Their fees differ too: 0.15% for SHY and 0.68% for AAXJ.
SHY currently has the higher Sharpe Ratio (2.43 vs 2.11), 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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