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SHY vs. PCY
Performance
Return for Risk
Drawdowns
Volatility
Dividends

SHY vs. PCY

Last updated Jun 9, 2026

SHY (iShares 1-3 Year Treasury Bond ETF) and PCY (Invesco Emerging Markets Sovereign Debt ETF) are both exchange-traded funds - SHY is a Government Bonds fund tracking the ICE US Treasury 1-3 Year Index, while PCY is a Emerging Markets Bonds fund tracking the DB Emerging Market USD Liquid Balanced Index. Both are passively managed. Over the past 10 years, SHY returned 1.63%/yr vs 2.55%/yr for PCY. At a 0.23 correlation, their price movements are largely independent. SHY charges 0.15%/yr vs 0.50%/yr for PCY.

Performance

SHY vs. PCY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares 1-3 Year Treasury Bond ETF (SHY) and Invesco Emerging Markets Sovereign Debt ETF (PCY). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, SHY achieves a 0.34% return, which is significantly lower than PCY's 1.26% return. Over the past 10 years, SHY has underperformed PCY with an annualized return of 1.63%, while PCY has yielded a comparatively higher 2.55% annualized return.

SHY

1D
0.05%
1M
-0.19%
YTD
0.34%
6M
0.74%
1Y
3.33%
3Y*
4.04%
5Y*
1.70%
10Y*
1.63%

PCY

1D
-0.33%
1M
-0.74%
YTD
1.26%
6M
1.62%
1Y
13.56%
3Y*
10.81%
5Y*
0.99%
10Y*
2.55%
*Multi-year figures are annualized to reflect compound growth (CAGR)

SHY vs. PCY - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
SHY
iShares 1-3 Year Treasury Bond ETF		0.34%4.95%3.92%4.16%-3.88%-0.71%3.03%3.38%1.46%0.26%
PCY
Invesco Emerging Markets Sovereign Debt ETF		1.26%16.31%2.55%18.48%-24.47%-4.30%2.29%17.66%-6.16%9.71%

Correlation

The correlation between SHY and PCY is 0.57, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.57

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

0.55

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

0.51

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

0.38

Correlation (All Time)
Calculated using the full available price history since Oct 11, 2007

0.23

Over the past year, SHY and PCY have become more correlated (0.57) than their long-term average of 0.23, meaning their price movements have been converging.

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

Invesco Emerging Markets Sovereign Debt ETF

Often compared with SHY:
SHY vs. SGOVSHY vs. VGSHSHY vs. SHVSHY vs. TLTSHY vs. IEFSHY vs. BILSHY vs. BSV
Often compared with PCY:
PCY vs. EMBPCY vs. VWOBPCY vs. ELDPCY vs. EMHYPCY vs. DFEMXPCY vs. CMFPCY vs. FEMB

Return for Risk

SHY vs. PCY — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
SHY
SHY Risk / Return Rank: 8686
Overall Rank
SHY Sharpe Ratio Rank: 8585
Sharpe Ratio Rank
SHY Sortino Ratio Rank: 9292
Sortino Ratio Rank
SHY Omega Ratio Rank: 8989
Omega Ratio Rank
SHY Calmar Ratio Rank: 8080
Calmar Ratio Rank
SHY Martin Ratio Rank: 8282
Martin Ratio Rank
PCY
PCY Risk / Return Rank: 5959
Overall Rank
PCY Sharpe Ratio Rank: 6161
Sharpe Ratio Rank
PCY Sortino Ratio Rank: 6262
Sortino Ratio Rank
PCY Omega Ratio Rank: 6161
Omega Ratio Rank
PCY Calmar Ratio Rank: 5252
Calmar Ratio Rank
PCY Martin Ratio Rank: 5858
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. PCY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares 1-3 Year Treasury Bond ETF (SHY) and Invesco Emerging Markets Sovereign Debt ETF (PCY). 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.

SHYPCYDifference
Sharpe ratioReturn per unit of total volatility
2.51
1.83

+0.68

Sortino ratioReturn per unit of downside risk
4.11
2.61

+1.50

Omega ratioGain probability vs. loss probability

1.51

1.34

+0.18

Calmar ratioReturn relative to maximum drawdown

3.76

2.31

+1.46

Martin ratioReturn relative to average drawdown

15.12

9.34

+5.79

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. PCY - Sharpe Ratio Comparison

The current SHY Sharpe Ratio is 2.51, which is higher than the PCY Sharpe Ratio of 1.83. The chart below compares the historical Sharpe Ratios of SHY and PCY, 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

SHYPCYDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.51

1.83

+0.68

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.86

0.08

+0.78

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

1.04

0.20

+0.84

Sharpe Ratio (All Time)

Calculated using the full available price history

1.28

0.29

+0.99

Drawdowns

SHY vs. PCY - Drawdown Comparison

The maximum SHY drawdown since its inception was -5.71%, smaller than the maximum PCY drawdown of -49.13%. Use the drawdown chart below to compare losses from any high point for SHY and PCY.

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Drawdown Indicators

SHYPCYDifference

Max Drawdown

Largest peak-to-trough decline

-5.71%

-49.13%

+43.42%

Max Drawdown (1Y)

Largest decline over 1 year

-0.89%

-5.91%

+5.02%

Max Drawdown (3Y)

Largest decline over 3 years

-0.97%

-11.52%

+10.55%

Max Drawdown (5Y)

Largest decline over 5 years

-5.71%

-37.17%

+31.46%

Max Drawdown (10Y)

Largest decline over 10 years

-5.71%

-37.78%

+32.07%

Current Drawdown

Current decline from peak

-0.39%

-1.23%

+0.84%

Average Drawdown

Average peak-to-trough decline

-0.52%

-6.97%

+6.45%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.22%

1.46%

-1.24%

Volatility

SHY vs. PCY - Volatility Comparison

The current volatility for iShares 1-3 Year Treasury Bond ETF (SHY) is 0.38%, while Invesco Emerging Markets Sovereign Debt ETF (PCY) has a volatility of 2.20%. This indicates that SHY experiences smaller price fluctuations and is considered to be less risky than PCY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

SHYPCYDifference

Volatility (1M)

Calculated over the trailing 1-month period

0.38%

2.20%

-1.82%

Volatility (6M)

Calculated over the trailing 6-month period

0.95%

5.83%

-4.88%

Volatility (1Y)

Calculated over the trailing 1-year period

1.33%

7.46%

-6.13%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

1.99%

13.17%

-11.18%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

1.57%

12.95%

-11.38%

SHY vs. PCY - Expense Ratio Comparison

SHY has a 0.15% expense ratio, which is lower than PCY's 0.50% expense ratio.

Dividends

SHY vs. PCY - Dividend Comparison

SHY's dividend yield for the trailing twelve months is around 3.69%, less than PCY's 5.91% yield.

PositionTTM20252024202320222021202020192018201720162015
PCY
Invesco Emerging Markets Sovereign Debt ETF		5.91%5.93%6.65%6.48%6.81%4.80%4.45%4.78%4.93%4.80%5.19%5.46%
SHY
iShares 1-3 Year Treasury Bond ETF		3.69%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 PCY have a correlation of 0.57, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

PCY has higher volatility (2.20%) compared to SHY (0.38%). In terms of maximum drawdown, SHY dropped -5.71% vs PCY's -49.13%.

On 10-year performance, PCY leads with 2.55% vs 1.63% 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, PCY has performed better with a 2.55% return vs 1.63%. 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 0.50% for PCY.

PCY has the higher dividend yield at 5.91%, compared with 3.69% for SHY.

SHY is categorized as Government Bonds, while PCY is Emerging Markets Bonds. SHY tracks ICE US Treasury 1-3 Year Index, while PCY tracks DB Emerging Market USD Liquid Balanced Index. They also come from different issuers: iShares and Invesco. Their fees differ too: 0.15% for SHY and 0.50% for PCY.

SHY currently has the higher Sharpe Ratio (2.51 vs 1.83), 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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