SHY vs. FRDM
SHY (iShares 1-3 Year Treasury Bond ETF) and FRDM (Freedom 100 Emerging Markets ETF) are both exchange-traded funds - SHY is a Government Bonds fund tracking the ICE US Treasury 1-3 Year Index, while FRDM is a Emerging Markets Diversified fund tracking the Life + Liberty Freedom 100 Emerging Markets Index. Both are passively managed. Over the past 5 years, SHY returned 1.74%/yr vs 18.68%/yr for FRDM. At a 0.07 correlation, their price movements are largely independent. SHY charges 0.15%/yr vs 0.49%/yr for FRDM.
Performance
SHY vs. FRDM - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, SHY achieves a 0.55% return, which is significantly lower than FRDM's 40.13% return.
SHY
- 1D
- -0.02%
- 1M
- 0.31%
- YTD
- 0.55%
- 6M
- 0.80%
- 1Y
- 3.29%
- 3Y*
- 4.15%
- 5Y*
- 1.74%
- 10Y*
- 1.65%
FRDM
- 1D
- 0.49%
- 1M
- 9.04%
- YTD
- 40.13%
- 6M
- 46.37%
- 1Y
- 87.32%
- 3Y*
- 34.29%
- 5Y*
- 18.68%
- 10Y*
- —
SHY vs. FRDM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|---|---|---|
SHY iShares 1-3 Year Treasury Bond ETF | 0.55% | 4.95% | 3.92% | 4.16% | -3.88% | -0.71% | 3.03% | 2.01% |
FRDM Freedom 100 Emerging Markets ETF | 40.13% | 61.27% | 1.70% | 22.77% | -14.45% | 6.13% | 16.90% | 12.23% |
Correlation
The correlation between SHY and FRDM is 0.26, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.26 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.17 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.15 |
Correlation (All Time) Calculated using the full available price history since May 23, 2019 | 0.07 |
The correlation between SHY and FRDM shifts across timeframes, from 0.07 (all time) to 0.26 (1 year), reflecting how their relationship changes across market environments.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
SHY vs. FRDM — Risk / Return Rank
SHY
FRDM
SHY vs. FRDM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 1-3 Year Treasury Bond ETF (SHY) and Freedom 100 Emerging Markets ETF (FRDM). 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 | FRDM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.72 | ||
| Sortino ratioReturn per unit of downside risk | +0.30 | ||
| Omega ratioGain probability vs. loss probability | 1.50 | 1.54 | -0.05 |
| Calmar ratioReturn relative to maximum drawdown | 3.64 | 5.02 | -1.38 |
| Martin ratioReturn relative to average drawdown | 14.45 | 19.36 | -4.91 |
Loading charts...
Drawdowns
SHY vs. FRDM - Drawdown Comparison
The maximum SHY drawdown since its inception was -5.71%, smaller than the maximum FRDM drawdown of -40.49%. Use the drawdown chart below to compare losses from any high point for SHY and FRDM.
Loading charts...
Drawdown Indicators
| SHY | FRDM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.71% | -40.49% | +34.78% |
Max Drawdown (1Y)Largest decline over 1 year | -0.89% | -16.87% | +15.98% |
Max Drawdown (3Y)Largest decline over 3 years | -0.97% | -16.87% | +15.90% |
Max Drawdown (5Y)Largest decline over 5 years | -5.71% | -29.25% | +23.54% |
Max Drawdown (10Y)Largest decline over 10 years | -5.71% | — | — |
Current DrawdownCurrent decline from peak | -0.18% | -4.36% | +4.18% |
Average DrawdownAverage peak-to-trough decline | -0.52% | -7.09% | +6.57% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.22% | 4.37% | -4.15% |
Volatility
SHY vs. FRDM - Volatility Comparison
The current volatility for iShares 1-3 Year Treasury Bond ETF (SHY) is 0.40%, while Freedom 100 Emerging Markets ETF (FRDM) has a volatility of 14.27%. This indicates that SHY experiences smaller price fluctuations and is considered to be less risky than FRDM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| SHY | FRDM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.40% | 14.27% | -13.87% |
Volatility (6M)Calculated over the trailing 6-month period | 0.95% | 24.39% | -23.44% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.33% | 26.86% | -25.53% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.99% | 21.35% | -19.36% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.57% | 23.09% | -21.52% |
SHY vs. FRDM - Expense Ratio Comparison
SHY has a 0.15% expense ratio, which is lower than FRDM's 0.49% expense ratio.
Dividends
SHY vs. FRDM - Dividend Comparison
SHY's dividend yield for the trailing twelve months is around 3.68%, more than FRDM's 1.56% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FRDM Freedom 100 Emerging Markets ETF | 1.56% | 2.26% | 2.53% | 2.66% | 2.72% | 2.17% | 1.11% | 1.07% | 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
SHY and FRDM have a correlation of 0.26, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FRDM has higher volatility (14.27%) compared to SHY (0.40%). In terms of maximum drawdown, SHY dropped -5.71% vs FRDM's -40.49%.
On 5-year performance, FRDM leads with 18.68% vs 1.74% 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 5-year period, FRDM has performed better with a 18.68% return vs 1.74%. 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 0.49% for FRDM.
SHY has the higher dividend yield at 3.68%, compared with 1.56% for FRDM.
SHY is categorized as Government Bonds, while FRDM is Emerging Markets Diversified. SHY tracks ICE US Treasury 1-3 Year Index, while FRDM tracks Life + Liberty Freedom 100 Emerging Markets Index. They also come from different issuers: iShares and Freedom Funds. Their fees differ too: 0.15% for SHY and 0.49% for FRDM.
FRDM currently has the higher Sharpe Ratio (3.15 vs 2.43), 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.
Find the right allocation for SHY and FRDM
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer