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SHY vs. ISTB
Performance
Return for Risk
Drawdowns
Volatility
Dividends

SHY vs. ISTB

Last updated Jun 4, 2026

SHY (iShares 1-3 Year Treasury Bond ETF) and ISTB (iShares Core 1-5 Year USD Bond ETF) are both exchange-traded funds - SHY is a Government Bonds fund tracking the ICE US Treasury 1-3 Year Index, while ISTB is a Short-Term Bond fund tracking the BBG US Universal 1-5 Year Index (USD). Both are passively managed. Over the past 10 years, SHY returned 1.65%/yr vs 2.27%/yr for ISTB. A 0.73 correlation means they provide meaningful diversification when combined. SHY charges 0.15%/yr vs 0.06%/yr for ISTB.

Performance

SHY vs. ISTB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares 1-3 Year Treasury Bond ETF (SHY) and iShares Core 1-5 Year USD Bond ETF (ISTB). The values are adjusted to include any dividend payments, if applicable.

Loading charts...

Returns By Period

In the year-to-date period, SHY achieves a 0.43% return, which is significantly lower than ISTB's 0.49% return. Over the past 10 years, SHY has underperformed ISTB with an annualized return of 1.65%, while ISTB has yielded a comparatively higher 2.27% 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%

ISTB

1D
-0.08%
1M
0.15%
YTD
0.49%
6M
0.71%
1Y
4.19%
3Y*
4.95%
5Y*
1.85%
10Y*
2.27%
*Multi-year figures are annualized to reflect compound growth (CAGR)

SHY vs. ISTB - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
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%
ISTB
iShares Core 1-5 Year USD Bond ETF		0.49%6.36%4.37%5.56%-6.08%-0.71%4.75%5.61%1.02%1.72%

Correlation

The correlation between SHY and ISTB is 0.92, 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

0.92

Correlation (3Y)
Calculated over the trailing 3-year period

0.93

Correlation (5Y)
Calculated over the trailing 5-year period

0.93

Correlation (10Y)
Calculated over the trailing 10-year period

0.80

Correlation (All Time)
Calculated using the full available price history since Oct 25, 2012

0.73

The correlation between SHY and ISTB shifts across timeframes, from 0.73 (all time) to 0.93 (3 years), 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.

iShares 1-3 Year Treasury Bond ETF

iShares Core 1-5 Year USD Bond ETF

Often compared with SHY:
SHY vs. SGOVSHY vs. VGSHSHY vs. SHVSHY vs. TLTSHY vs. IEFSHY vs. BILSHY vs. BSV
Often compared with ISTB:
ISTB vs. BSVISTB vs. AGGISTB vs. FUMBXISTB vs. IMTBISTB vs. IAGGISTB vs. FIBRISTB vs. VGSH

Return for Risk

SHY vs. ISTB — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
SHY
SHY Risk / Return Rank: 7979
Overall Rank
SHY Sharpe Ratio Rank: 7474
Sharpe Ratio Rank
SHY Sortino Ratio Rank: 8888
Sortino Ratio Rank
SHY Omega Ratio Rank: 8282
Omega Ratio Rank
SHY Calmar Ratio Rank: 7373
Calmar Ratio Rank
SHY Martin Ratio Rank: 7777
Martin Ratio Rank
ISTB
ISTB Risk / Return Rank: 7373
Overall Rank
ISTB Sharpe Ratio Rank: 7171
Sharpe Ratio Rank
ISTB Sortino Ratio Rank: 8181
Sortino Ratio Rank
ISTB Omega Ratio Rank: 7777
Omega Ratio Rank
ISTB Calmar Ratio Rank: 6767
Calmar Ratio Rank
ISTB Martin Ratio Rank: 6868
Martin Ratio Rank
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. ISTB - 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 Core 1-5 Year USD Bond ETF (ISTB). 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.

SHYISTBDifference

Sharpe ratio

Return per unit of total volatility

2.49

2.37

+0.12

Sortino ratio

Return per unit of downside risk

4.10

3.69

+0.41

Omega ratio

Gain probability vs. loss probability

1.51

1.46

+0.04

Calmar ratio

Return relative to maximum drawdown

3.75

3.34

+0.41

Martin ratio

Return relative to average drawdown

15.21

12.72

+2.49

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. ISTB - Sharpe Ratio Comparison

The current SHY Sharpe Ratio is 2.49, which is comparable to the ISTB Sharpe Ratio of 2.37. The chart below compares the historical Sharpe Ratios of SHY and ISTB, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

SHYISTBDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.49

2.37

+0.12

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.87

0.67

+0.20

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

1.06

0.91

+0.15

Sharpe Ratio (All Time)

Calculated using the full available price history

1.28

0.84

+0.44

Drawdowns

SHY vs. ISTB - Drawdown Comparison

The maximum SHY drawdown since its inception was -5.71%, smaller than the maximum ISTB drawdown of -9.34%. Use the drawdown chart below to compare losses from any high point for SHY and ISTB.

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Drawdown Indicators

SHYISTBDifference

Max Drawdown

Largest peak-to-trough decline

-5.71%

-9.34%

+3.63%

Max Drawdown (1Y)

Largest decline over 1 year

-0.89%

-1.26%

+0.37%

Max Drawdown (3Y)

Largest decline over 3 years

-0.97%

-1.36%

+0.39%

Max Drawdown (5Y)

Largest decline over 5 years

-5.71%

-9.34%

+3.63%

Max Drawdown (10Y)

Largest decline over 10 years

-5.71%

-9.34%

+3.63%

Current Drawdown

Current decline from peak

-0.31%

-0.42%

+0.11%

Average Drawdown

Average peak-to-trough decline

-0.52%

-1.22%

+0.70%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.22%

0.33%

-0.11%

Volatility

SHY vs. ISTB - Volatility Comparison

The current volatility for iShares 1-3 Year Treasury Bond ETF (SHY) is 0.35%, while iShares Core 1-5 Year USD Bond ETF (ISTB) has a volatility of 0.54%. This indicates that SHY experiences smaller price fluctuations and is considered to be less risky than ISTB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

SHYISTBDifference

Volatility (1M)

Calculated over the trailing 1-month period

0.35%

0.54%

-0.19%

Volatility (6M)

Calculated over the trailing 6-month period

0.92%

1.28%

-0.36%

Volatility (1Y)

Calculated over the trailing 1-year period

1.34%

1.77%

-0.43%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

1.98%

2.79%

-0.81%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

1.57%

2.51%

-0.94%

SHY vs. ISTB - Expense Ratio Comparison

SHY has a 0.15% expense ratio, which is higher than ISTB's 0.06% 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. ISTB - Dividend Comparison

SHY's dividend yield for the trailing twelve months is around 3.68%, less than ISTB's 4.25% yield.

PositionTTM20252024202320222021202020192018201720162015
ISTB
iShares Core 1-5 Year USD Bond ETF		4.25%4.12%3.83%2.97%2.01%1.69%2.20%2.75%2.57%2.06%1.90%1.58%
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

With a correlation of 0.92, SHY and ISTB 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.

ISTB has higher volatility (0.54%) compared to SHY (0.35%). In terms of maximum drawdown, SHY dropped -5.71% vs ISTB's -9.34%.

On 10-year performance, ISTB leads with 2.27% vs 1.65% for SHY. On fees, ISTB is cheaper at 0.06% 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, ISTB has performed better with a 2.27% return vs 1.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

ISTB is cheaper with a 0.06% expense ratio, compared with 0.15% for SHY.

ISTB has the higher dividend yield at 4.25%, compared with 3.68% for SHY.

SHY is categorized as Government Bonds, while ISTB is Short-Term Bond. SHY tracks ICE US Treasury 1-3 Year Index, while ISTB tracks BBG US Universal 1-5 Year Index (USD). Their fees differ too: 0.15% for SHY and 0.06% for ISTB.

SHY currently has the higher Sharpe Ratio (2.49 vs 2.37), 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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