SHY vs. IEF
Compare and contrast key facts about iShares 1-3 Year Treasury Bond ETF (SHY) and iShares 7-10 Year Treasury Bond ETF (IEF).
SHY and IEF are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. SHY is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. 1-3 Year Treasury Bond Index. It was launched on Jul 22, 2002. IEF is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. 7-10 Year Treasury Bond Index. It was launched on Jul 26, 2002. Both SHY and IEF are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: SHY or IEF.
Key characteristics
| SHY | IEF | |
|---|---|---|
| YTD Return | -0.09% | -4.32% |
| 1Y Return | 2.28% | -4.64% |
| 3Y Return (Ann) | -0.20% | -5.11% |
| 5Y Return (Ann) | 0.91% | -1.12% |
| 10Y Return (Ann) | 0.89% | 0.80% |
| Sharpe Ratio | 1.00 | -0.63 |
| Daily Std Dev | 2.07% | 8.32% |
| Max Drawdown | -5.71% | -23.93% |
| Current Drawdown | -0.74% | -20.46% |
Correlation
The correlation between SHY and IEF is 0.77, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
SHY vs. IEF - Performance Comparison
In the year-to-date period, SHY achieves a -0.09% return, which is significantly higher than IEF's -4.32% return. Over the past 10 years, SHY has outperformed IEF with an annualized return of 0.89%, while IEF has yielded a comparatively lower 0.80% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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SHY vs. IEF - Expense Ratio Comparison
Both SHY and IEF have an expense ratio of 0.15%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Risk-Adjusted Performance
SHY vs. IEF - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 1-3 Year Treasury Bond ETF (SHY) and iShares 7-10 Year Treasury Bond ETF (IEF). 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.
Dividends
SHY vs. IEF - Dividend Comparison
SHY's dividend yield for the trailing twelve months is around 3.34%, more than IEF's 3.24% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SHY iShares 1-3 Year Treasury Bond ETF | 3.34% | 2.99% | 1.30% | 0.26% | 0.94% | 2.12% | 1.72% | 0.98% | 0.71% | 0.54% | 0.36% | 0.26% |
IEF iShares 7-10 Year Treasury Bond ETF | 3.24% | 2.91% | 1.96% | 0.83% | 1.08% | 2.08% | 2.24% | 1.82% | 1.81% | 1.90% | 2.05% | 1.77% |
Drawdowns
SHY vs. IEF - Drawdown Comparison
The maximum SHY drawdown since its inception was -5.71%, smaller than the maximum IEF drawdown of -23.93%. Use the drawdown chart below to compare losses from any high point for SHY and IEF. For additional features, visit the drawdowns tool.
Volatility
SHY vs. IEF - Volatility Comparison
The current volatility for iShares 1-3 Year Treasury Bond ETF (SHY) is 0.58%, while iShares 7-10 Year Treasury Bond ETF (IEF) has a volatility of 2.19%. This indicates that SHY experiences smaller price fluctuations and is considered to be less risky than IEF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.