SHY vs. IWM
SHY (iShares 1-3 Year Treasury Bond ETF) and IWM (iShares Russell 2000 ETF) are both exchange-traded funds - SHY is a Government Bonds fund tracking the ICE US Treasury 1-3 Year Index, while IWM is a Small Cap Blend Equities fund tracking the Russell 2000 Index. Both are passively managed. Over the past 10 years, SHY returned 1.65%/yr vs 10.70%/yr for IWM. Their -0.17 correlation means they have often moved in opposite directions in the past. SHY charges 0.15%/yr vs 0.19%/yr for IWM.
Performance
SHY vs. IWM - Performance Comparison
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Returns By Period
In the year-to-date period, SHY achieves a 0.76% return, which is significantly lower than IWM's 18.79% return. Over the past 10 years, SHY has underperformed IWM with an annualized return of 1.65%, while IWM has yielded a comparatively higher 10.70% annualized return.
SHY
- 1D
- -0.01%
- 1M
- 0.07%
- 6M
- 0.55%
- YTD
- 0.76%
- 1Y
- 2.53%
- 3Y*
- 4.19%
- 5Y*
- 1.78%
- 10Y*
- 1.65%
- ALL TIME*
- 1.95%
IWM
- 1D
- -0.48%
- 1M
- -2.14%
- 6M
- 12.62%
- YTD
- 18.79%
- 1Y
- 36.90%
- 3Y*
- 15.11%
- 5Y*
- 6.99%
- 10Y*
- 10.70%
- ALL TIME*
- 8.73%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $6.67B | $6.32B | $7.45B | |
| $257.73M | $267.74M | $273.79M |
SHY vs. IWM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SHY iShares 1-3 Year Treasury Bond ETF | 0.76% | 4.95% | 3.92% | 4.16% | -3.88% | -0.71% | 3.03% | 3.38% | 1.46% | 0.26% |
IWM iShares Russell 2000 ETF | 18.79% | 12.66% | 11.38% | 16.83% | -20.48% | 14.54% | 20.03% | 25.39% | -11.12% | 14.58% |
Correlation
The correlation between SHY and IWM is 0.24, which is low. Their historical price movements had little consistent relationship.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.24 |
Correlation (3Y) Balances recent behavior with more history. | 0.16 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.14 |
Correlation (10Y) Provides a long-term view across more market conditions. | -0.02 |
Correlation (All Time) Calculated using the full available price history since Jul 26, 2002 | -0.17 |
The correlation between SHY and IWM shifts across timeframes, from -0.17 (all time) to 0.24 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
SHY vs. IWM — Risk / Return Rank
SHY
IWM
SHY vs. IWM - 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 Russell 2000 ETF (IWM). 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 | IWM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.45 | ||
| Sortino ratioReturn per unit of downside risk | +1.00 | ||
| Omega ratioGain probability vs. loss probability | 1.45 | 1.30 | +0.15 |
| Calmar ratioReturn relative to maximum drawdown | 3.43 | 3.11 | +0.32 |
| Martin ratioReturn relative to average drawdown | 13.40 | 11.02 | +2.38 |
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Drawdowns
SHY vs. IWM - Drawdown Comparison
The maximum SHY drawdown since its inception was -5.71%, smaller than the maximum IWM drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for SHY and IWM.
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Drawdown Indicators
| SHY | IWM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.71% | -59.05% | +53.34% |
Max Drawdown (1Y)Largest decline over 1 year | -0.89% | -11.03% | +10.14% |
Max Drawdown (3Y)Largest decline over 3 years | -0.97% | -27.50% | +26.53% |
Max Drawdown (5Y)Largest decline over 5 years | -5.67% | -31.91% | +26.24% |
Max Drawdown (10Y)Largest decline over 10 years | -5.71% | -41.13% | +35.42% |
Current DrawdownCurrent decline from peak | -0.01% | -3.08% | +3.07% |
Average DrawdownAverage peak-to-trough decline | -0.52% | -10.71% | +10.19% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.23% | 3.11% | -2.88% |
Volatility
SHY vs. IWM - Volatility Comparison
The current volatility for iShares 1-3 Year Treasury Bond ETF (SHY) is 0.38%, while iShares Russell 2000 ETF (IWM) has a volatility of 3.82%. This indicates that SHY experiences smaller price fluctuations and is considered to be less risky than IWM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SHY | IWM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.38% | 3.82% | -3.44% |
Volatility (6M)Calculated over the trailing 6-month period | 1.07% | 14.12% | -13.05% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.38% | 19.41% | -18.03% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.00% | 22.48% | -20.48% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.57% | 23.01% | -21.44% |
SHY vs. IWM - Expense Ratio Comparison
SHY has a 0.15% expense ratio, which is lower than IWM's 0.19% expense ratio. Despite the difference, 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. IWM - Dividend Comparison
SHY's dividend yield for the trailing twelve months is around 3.65%, more than IWM's 0.91% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IWM iShares Russell 2000 ETF | 0.91% | 1.04% | 1.15% | 1.35% | 1.48% | 0.94% | 1.04% | 1.26% | 1.40% | 1.26% | 1.38% | 1.54% |
SHY iShares 1-3 Year Treasury Bond ETF | 3.32% | 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 IWM have a correlation of 0.24, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IWM has higher volatility (3.82%) compared to SHY (0.38%). In terms of maximum drawdown, SHY dropped -5.71% vs IWM's -59.05%.
On 10-year performance, IWM leads with 10.70% vs 1.65% for SHY. On fees, SHY is cheaper at 0.15% per year. On volatility, SHY has been the lower-risk option at 0.38%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IWM has performed better with a 10.70% return vs 1.65%. 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 0.19% for IWM.
SHY has the higher dividend yield at 3.32%, compared with 0.91% for IWM.
SHY is categorized as Government Bonds, while IWM is Small Cap Blend Equities. SHY tracks ICE US Treasury 1-3 Year Index, while IWM tracks Russell 2000 Index. Their fees differ too: 0.15% for SHY and 0.19% for IWM.
SHY currently has the higher Sharpe Ratio (2.21 vs 1.77), 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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