SHY vs. CAOS

Last updated Jun 4, 2026

SHY (iShares 1-3 Year Treasury Bond ETF) and CAOS (Alpha Architect Tail Risk ETF) are both exchange-traded funds - SHY is a Government Bonds fund tracking the ICE US Treasury 1-3 Year Index, while CAOS is a Options Trading fund actively managed by Alpha Architect. SHY is passively managed, while CAOS is actively managed. Over the past 3 years, SHY returned 4.03%/yr vs 4.26%/yr for CAOS. At a 0.01 correlation, their price movements are largely independent. SHY charges 0.15%/yr vs 0.63%/yr for CAOS.

Performance

SHY vs. CAOS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares 1-3 Year Treasury Bond ETF (SHY) and Alpha Architect Tail Risk ETF (CAOS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SHY achieves a 0.43% return, which is significantly lower than CAOS's 0.82% return.

SHY

• 1D: -0.05%
• 1M: 0.08%
• YTD: 0.43%
• 6M: 0.69%
• 1Y: 3.32%
• 3Y*: 4.03%
• 5Y*: 1.71%
• 10Y*: 1.65%

CAOS

• 1D: 0.12%
• 1M: -0.09%
• YTD: 0.82%
• 6M: 0.69%
• 1Y: 1.88%
• 3Y*: 4.26%
• 5Y*: —
• 10Y*: —

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

SHY vs. CAOS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
SHY iShares 1-3 Year Treasury Bond ETF	0.43%	4.95%	3.92%	4.34%
CAOS Alpha Architect Tail Risk ETF	0.82%	2.55%	5.33%	7.97%

Correlation

The correlation between SHY and CAOS is 0.05, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.05
Correlation (3Y) Calculated over the trailing 3-year period	0.08
Correlation (All Time) Calculated using the full available price history since Mar 7, 2023	0.01

Return for Risk

SHY vs. CAOS — Risk / Return Rank

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

SHY

SHY Risk / Return Rank: 79
SHY Sharpe Ratio Rank: 74
SHY Sortino Ratio Rank: 88
SHY Omega Ratio Rank: 82
SHY Calmar Ratio Rank: 73
SHY Martin Ratio Rank: 77

CAOS

CAOS Risk / Return Rank: 40
CAOS Sharpe Ratio Rank: 34
CAOS Sortino Ratio Rank: 37
CAOS Omega Ratio Rank: 39
CAOS Calmar Ratio Rank: 49
CAOS Martin Ratio Rank: 39

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.

SHY vs. CAOS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares 1-3 Year Treasury Bond ETF (SHY) and Alpha Architect Tail Risk ETF (CAOS). 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.

	SHY	CAOS	Difference
Sharpe ratio Return per unit of total volatility	2.49	1.24	+1.25
Sortino ratio Return per unit of downside risk	4.10	1.98	+2.13
Omega ratio Gain probability vs. loss probability	1.51	1.26	+0.25
Calmar ratio Return relative to maximum drawdown	3.75	2.49	+1.26
Martin ratio Return relative to average drawdown	15.21	6.22	+8.98
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SHY vs. CAOS - Sharpe Ratio Comparison

The current SHY Sharpe Ratio is 2.49, which is higher than the CAOS Sharpe Ratio of 1.24. The chart below compares the historical Sharpe Ratios of SHY and CAOS, 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

	SHY	CAOS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.49	1.24	+1.25
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.87	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.06	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.28	1.21	+0.07

Drawdowns

SHY vs. CAOS - Drawdown Comparison

The maximum SHY drawdown since its inception was -5.71%, which is greater than CAOS's maximum drawdown of -3.60%. Use the drawdown chart below to compare losses from any high point for SHY and CAOS.

Drawdown Indicators

	SHY	CAOS	Difference
Max Drawdown Largest peak-to-trough decline	-5.71%	-3.60%	-2.11%
Max Drawdown (1Y) Largest decline over 1 year	-0.89%	-0.76%	-0.13%
Max Drawdown (3Y) Largest decline over 3 years	-0.97%	-3.60%	+2.63%
Max Drawdown (5Y) Largest decline over 5 years	-5.71%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-5.71%	—	—
Current Drawdown Current decline from peak	-0.31%	-1.07%	+0.76%
Average Drawdown Average peak-to-trough decline	-0.52%	-0.90%	+0.38%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.22%	0.30%	-0.08%

Volatility

SHY vs. CAOS - Volatility Comparison

iShares 1-3 Year Treasury Bond ETF (SHY) has a higher volatility of 0.35% compared to Alpha Architect Tail Risk ETF (CAOS) at 0.26%. This indicates that SHY's price experiences larger fluctuations and is considered to be riskier than CAOS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SHY	CAOS	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.35%	0.26%	+0.09%
Volatility (6M) Calculated over the trailing 6-month period	0.92%	1.03%	-0.11%
Volatility (1Y) Calculated over the trailing 1-year period	1.34%	1.52%	-0.18%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.98%	4.26%	-2.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.57%	4.26%	-2.69%

SHY vs. CAOS - Expense Ratio Comparison

SHY has a 0.15% expense ratio, which is lower than CAOS's 0.63% expense ratio.

Dividends

SHY vs. CAOS - Dividend Comparison

SHY's dividend yield for the trailing twelve months is around 3.68%, while CAOS has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CAOS Alpha Architect Tail Risk ETF	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
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

Can I hold both SHY and CAOS in my portfolio?

SHY and CAOS have a correlation of 0.05, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SHY or CAOS?

SHY has higher volatility (0.35%) compared to CAOS (0.26%). In terms of maximum drawdown, SHY dropped -5.71% vs CAOS's -3.60%.

Which ETF is better, SHY or CAOS?

On 3-year performance, CAOS leads with 4.26% vs 4.03% for SHY. On fees, SHY is cheaper at 0.15% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SHY or CAOS?

Over the 3-year period, CAOS has performed better with a 4.26% return vs 4.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SHY or CAOS?

SHY is cheaper with a 0.15% expense ratio, compared with 0.63% for CAOS.

Which ETF pays a higher dividend yield, SHY or CAOS?

SHY has the higher dividend yield at 3.68%, compared with 0.00% for CAOS.

What is the main difference between SHY and CAOS?

SHY is categorized as Government Bonds, while CAOS is Options Trading. They also come from different issuers: iShares and Alpha Architect. Their fees differ too: 0.15% for SHY and 0.63% for CAOS.

Which has better risk-adjusted returns?

SHY currently has the higher Sharpe Ratio (2.49 vs 1.24), 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.