SHY vs. BSV
SHY (iShares 1-3 Year Treasury Bond ETF) and BSV (Vanguard Short-Term Bond Index Fund ETF Shares) are both exchange-traded funds - SHY is a Government Bonds fund tracking the ICE US Treasury 1-3 Year Index, while BSV is a Short-Term Bond fund tracking the Bloomberg U.S. 1–5 Year Government/Credit Float Adjusted Index. Both are passively managed. Over the past 10 years, SHY returned 1.65%/yr vs 1.90%/yr for BSV. Their 0.80 correlation means they have sometimes moved together and sometimes differently. SHY charges 0.15%/yr vs 0.03%/yr for BSV.
Performance
SHY vs. BSV - Performance Comparison
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Returns By Period
In the year-to-date period, SHY achieves a 0.76% return, which is significantly higher than BSV's 0.42% return. Over the past 10 years, SHY has underperformed BSV with an annualized return of 1.65%, while BSV has yielded a comparatively higher 1.90% annualized return.
SHY
- 1D
- -0.01%
- 1M
- 0.07%
- 6M
- 0.55%
- YTD
- 0.76%
- 1Y
- 2.53%
- 3Y*
- 4.19%
- 5Y*
- 1.78%
- 10Y*
- 1.65%
- ALL TIME*
- 1.95%
BSV
- 1D
- -0.08%
- 1M
- -0.22%
- 6M
- 0.27%
- YTD
- 0.42%
- 1Y
- 2.36%
- 3Y*
- 4.55%
- 5Y*
- 1.61%
- 10Y*
- 1.90%
- ALL TIME*
- 2.51%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $124.18M | $168.72M | $200.19M | |
| $257.73M | $267.74M | $273.79M |
SHY vs. BSV - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SHY iShares 1-3 Year Treasury Bond ETF | 0.76% | 4.95% | 3.92% | 4.16% | -3.88% | -0.71% | 3.03% | 3.38% | 1.46% | 0.26% |
BSV Vanguard Short-Term Bond Index Fund ETF Shares | 0.42% | 6.00% | 3.78% | 4.90% | -5.49% | -1.09% | 4.70% | 4.98% | 1.34% | 1.20% |
Correlation
The correlation between SHY and BSV is 0.94, meaning they have usually moved in the same direction, including during past declines.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.94 |
Correlation (3Y) Balances recent behavior with more history. | 0.95 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.95 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.89 |
Correlation (All Time) Calculated using the full available price history since Apr 10, 2007 | 0.80 |
The correlation between SHY and BSV shifts across timeframes, from 0.80 (all time) to 0.95 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
SHY vs. BSV — Risk / Return Rank
SHY
BSV
SHY vs. BSV - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 1-3 Year Treasury Bond ETF (SHY) and Vanguard Short-Term Bond Index Fund ETF Shares (BSV). 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 | BSV | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.56 | ||
| Sortino ratioReturn per unit of downside risk | +0.94 | ||
| Omega ratioGain probability vs. loss probability | 1.45 | 1.31 | +0.14 |
| Calmar ratioReturn relative to maximum drawdown | 3.43 | 2.33 | +1.11 |
| Martin ratioReturn relative to average drawdown | 13.40 | 7.21 | +6.19 |
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Drawdowns
SHY vs. BSV - Drawdown Comparison
The maximum SHY drawdown since its inception was -5.71%, smaller than the maximum BSV drawdown of -8.54%. Use the drawdown chart below to compare losses from any high point for SHY and BSV.
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Drawdown Indicators
| SHY | BSV | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.71% | -8.54% | +2.83% |
Max Drawdown (1Y)Largest decline over 1 year | -0.89% | -1.29% | +0.40% |
Max Drawdown (3Y)Largest decline over 3 years | -0.97% | -1.53% | +0.56% |
Max Drawdown (5Y)Largest decline over 5 years | -5.67% | -8.48% | +2.81% |
Max Drawdown (10Y)Largest decline over 10 years | -5.71% | -8.54% | +2.83% |
Current DrawdownCurrent decline from peak | -0.01% | -0.50% | +0.49% |
Average DrawdownAverage peak-to-trough decline | -0.52% | -0.97% | +0.45% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.23% | 0.42% | -0.19% |
Volatility
SHY vs. BSV - Volatility Comparison
The current volatility for iShares 1-3 Year Treasury Bond ETF (SHY) is 0.38%, while Vanguard Short-Term Bond Index Fund ETF Shares (BSV) has a volatility of 0.49%. This indicates that SHY experiences smaller price fluctuations and is considered to be less risky than BSV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SHY | BSV | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.38% | 0.49% | -0.11% |
Volatility (6M)Calculated over the trailing 6-month period | 1.07% | 1.41% | -0.34% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.38% | 1.81% | -0.43% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.00% | 2.74% | -0.74% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.57% | 2.38% | -0.81% |
SHY vs. BSV - Expense Ratio Comparison
SHY has a 0.15% expense ratio, which is higher than BSV'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
SHY vs. BSV - Dividend Comparison
SHY's dividend yield for the trailing twelve months is around 3.65%, less than BSV's 4.02% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BSV Vanguard Short-Term Bond Index Fund ETF Shares | 3.68% | 3.83% | 3.38% | 2.46% | 1.50% | 1.45% | 1.79% | 2.29% | 1.99% | 1.65% | 1.48% | 1.40% |
SHY iShares 1-3 Year Treasury Bond ETF | 3.32% | 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
With a correlation of 0.94, SHY and BSV move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
BSV has higher volatility (0.49%) compared to SHY (0.38%). In terms of maximum drawdown, SHY dropped -5.71% vs BSV's -8.54%.
On 10-year performance, BSV leads with 1.90% vs 1.65% for SHY. On fees, BSV is cheaper at 0.03% 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, BSV has performed better with a 1.90% return vs 1.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
BSV is cheaper with a 0.03% expense ratio, compared with 0.15% for SHY.
BSV has the higher dividend yield at 3.68%, compared with 3.32% for SHY.
SHY is categorized as Government Bonds, while BSV is Short-Term Bond. SHY tracks ICE US Treasury 1-3 Year Index, while BSV tracks Bloomberg U.S. 1–5 Year Government/Credit Float Adjusted Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.15% for SHY and 0.03% for BSV.
SHY currently has the higher Sharpe Ratio (2.21 vs 1.66), 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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