SHY vs. GOVT
SHY (iShares 1-3 Year Treasury Bond ETF) and GOVT (iShares U.S. Treasury Bond ETF) are both Government Bonds funds from iShares - SHY tracks the ICE US Treasury 1-3 Year Index while GOVT tracks the ICE U.S. Treasury Core Bond Index. Both are passively managed. Over the past 10 years, SHY returned 1.65%/yr vs 0.87%/yr for GOVT. A 0.74 correlation means they provide meaningful diversification when combined. SHY charges 0.15%/yr vs 0.05%/yr for GOVT.
Performance
SHY vs. GOVT - Performance Comparison
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Returns By Period
In the year-to-date period, SHY achieves a 0.43% return, which is significantly higher than GOVT's -0.11% return. Over the past 10 years, SHY has outperformed GOVT with an annualized return of 1.65%, while GOVT has yielded a comparatively lower 0.87% annualized 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%
GOVT
- 1D
- -0.18%
- 1M
- 0.11%
- YTD
- -0.11%
- 6M
- -0.34%
- 1Y
- 3.87%
- 3Y*
- 2.83%
- 5Y*
- -0.45%
- 10Y*
- 0.87%
SHY vs. GOVT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SHY iShares 1-3 Year Treasury Bond ETF | 0.43% | 4.95% | 3.92% | 4.16% | -3.88% | -0.71% | 3.03% | 3.38% | 1.46% | 0.26% |
GOVT iShares U.S. Treasury Bond ETF | -0.11% | 3.77% | 2.95% | 4.17% | -13.39% | -1.11% | 7.28% | 7.36% | 0.26% | 2.19% |
Correlation
The correlation between SHY and GOVT is 0.83, 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 | 0.83 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.83 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.80 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.76 |
Correlation (All Time) Calculated using the full available price history since Feb 27, 2012 | 0.74 |
The correlation between SHY and GOVT has been stable across timeframes, ranging from 0.74 to 0.83 - a consistent structural relationship.
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Return for Risk
SHY vs. GOVT — Risk / Return Rank
SHY
GOVT
SHY vs. GOVT - 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 U.S. Treasury Bond ETF (GOVT). 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 | GOVT | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 2.49 | 1.07 | +1.42 |
Sortino ratioReturn per unit of downside risk | 4.10 | 1.62 | +2.48 |
Omega ratioGain probability vs. loss probability | 1.51 | 1.18 | +0.32 |
Calmar ratioReturn relative to maximum drawdown | 3.75 | 1.36 | +2.39 |
Martin ratioReturn relative to average drawdown | 15.21 | 4.01 | +11.20 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| SHY | GOVT | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.49 | 1.07 | +1.42 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.87 | -0.08 | +0.94 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 1.06 | 0.17 | +0.89 |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.28 | 0.26 | +1.02 |
Drawdowns
SHY vs. GOVT - Drawdown Comparison
The maximum SHY drawdown since its inception was -5.71%, smaller than the maximum GOVT drawdown of -19.07%. Use the drawdown chart below to compare losses from any high point for SHY and GOVT.
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Drawdown Indicators
| SHY | GOVT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.71% | -19.07% | +13.36% |
Max Drawdown (1Y)Largest decline over 1 year | -0.89% | -2.85% | +1.96% |
Max Drawdown (3Y)Largest decline over 3 years | -0.97% | -5.43% | +4.46% |
Max Drawdown (5Y)Largest decline over 5 years | -5.71% | -16.60% | +10.89% |
Max Drawdown (10Y)Largest decline over 10 years | -5.71% | -19.07% | +13.36% |
Current DrawdownCurrent decline from peak | -0.31% | -7.17% | +6.86% |
Average DrawdownAverage peak-to-trough decline | -0.52% | -5.25% | +4.73% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.22% | 0.97% | -0.75% |
Volatility
SHY vs. GOVT - Volatility Comparison
The current volatility for iShares 1-3 Year Treasury Bond ETF (SHY) is 0.35%, while iShares U.S. Treasury Bond ETF (GOVT) has a volatility of 1.09%. This indicates that SHY experiences smaller price fluctuations and is considered to be less risky than GOVT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SHY | GOVT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.35% | 1.09% | -0.74% |
Volatility (6M)Calculated over the trailing 6-month period | 0.92% | 2.51% | -1.59% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.34% | 3.63% | -2.29% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.98% | 6.04% | -4.06% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.57% | 5.22% | -3.65% |
SHY vs. GOVT - Expense Ratio Comparison
SHY has a 0.15% expense ratio, which is higher than GOVT's 0.05% 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. GOVT - Dividend Comparison
SHY's dividend yield for the trailing twelve months is around 3.68%, more than GOVT's 3.59% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
GOVT iShares U.S. Treasury Bond ETF | 3.59% | 3.49% | 3.14% | 2.65% | 1.77% | 0.96% | 2.17% | 1.98% | 1.97% | 1.57% | 1.40% | 1.25% |
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 GOVT have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
GOVT has higher volatility (1.09%) compared to SHY (0.35%). In terms of maximum drawdown, SHY dropped -5.71% vs GOVT's -19.07%.
On 10-year performance, SHY leads with 1.65% vs 0.87% for GOVT. On fees, GOVT is cheaper at 0.05% per year. On volatility, SHY has been the lower-risk option at 0.35%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, SHY has performed better with a 1.65% return vs 0.87%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
GOVT is cheaper with a 0.05% expense ratio, compared with 0.15% for SHY.
SHY has the higher dividend yield at 3.68%, compared with 3.59% for GOVT.
SHY tracks ICE US Treasury 1-3 Year Index, while GOVT tracks ICE U.S. Treasury Core Bond Index. Their fees differ too: 0.15% for SHY and 0.05% for GOVT.
SHY currently has the higher Sharpe Ratio (2.49 vs 1.07), 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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