SHY vs. RAAX
SHY (iShares 1-3 Year Treasury Bond ETF) and RAAX (VanEck Inflation Allocation ETF) are both exchange-traded funds - SHY is a Government Bonds fund tracking the ICE US Treasury 1-3 Year Index, while RAAX is a Diversified Portfolio fund actively managed by VanEck. SHY is passively managed, while RAAX is actively managed. Over the past 5 years, SHY returned 1.74%/yr vs 13.17%/yr for RAAX. At a 0.07 correlation, their price movements are largely independent. SHY charges 0.15%/yr vs 0.78%/yr for RAAX.
Performance
SHY vs. RAAX - Performance Comparison
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Returns By Period
In the year-to-date period, SHY achieves a 0.55% return, which is significantly lower than RAAX's 17.64% return.
SHY
- 1D
- -0.02%
- 1M
- 0.19%
- YTD
- 0.55%
- 6M
- 0.80%
- 1Y
- 3.29%
- 3Y*
- 4.15%
- 5Y*
- 1.74%
- 10Y*
- 1.65%
RAAX
- 1D
- 2.26%
- 1M
- -3.39%
- YTD
- 17.64%
- 6M
- 17.56%
- 1Y
- 32.08%
- 3Y*
- 21.35%
- 5Y*
- 13.17%
- 10Y*
- —
SHY vs. RAAX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|---|---|
SHY iShares 1-3 Year Treasury Bond ETF | 0.55% | 4.95% | 3.92% | 4.16% | -3.88% | -0.71% | 3.03% | 3.38% | 1.59% |
RAAX VanEck Inflation Allocation ETF | 17.64% | 26.74% | 12.50% | 6.71% | 1.51% | 21.56% | -8.27% | 6.14% | -2.41% |
Correlation
The correlation between SHY and RAAX is 0.07, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.07 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.12 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.12 |
Correlation (All Time) Calculated using the full available price history since Apr 10, 2018 | 0.07 |
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Return for Risk
SHY vs. RAAX — Risk / Return Rank
SHY
RAAX
SHY vs. RAAX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 1-3 Year Treasury Bond ETF (SHY) and VanEck Inflation Allocation ETF (RAAX). 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 | RAAX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.06 | ||
| Sortino ratioReturn per unit of downside risk | +0.87 | ||
| Omega ratioGain probability vs. loss probability | 1.50 | 1.43 | +0.06 |
| Calmar ratioReturn relative to maximum drawdown | 3.64 | 4.68 | -1.05 |
| Martin ratioReturn relative to average drawdown | 14.45 | 16.90 | -2.45 |
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Drawdowns
SHY vs. RAAX - Drawdown Comparison
The maximum SHY drawdown since its inception was -5.71%, smaller than the maximum RAAX drawdown of -33.91%. Use the drawdown chart below to compare losses from any high point for SHY and RAAX.
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Drawdown Indicators
| SHY | RAAX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.71% | -33.91% | +28.20% |
Max Drawdown (1Y)Largest decline over 1 year | -0.89% | -7.17% | +6.28% |
Max Drawdown (3Y)Largest decline over 3 years | -0.97% | -11.59% | +10.62% |
Max Drawdown (5Y)Largest decline over 5 years | -5.71% | -23.55% | +17.84% |
Max Drawdown (10Y)Largest decline over 10 years | -5.71% | — | — |
Current DrawdownCurrent decline from peak | -0.18% | -3.77% | +3.59% |
Average DrawdownAverage peak-to-trough decline | -0.52% | -6.77% | +6.25% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.22% | 1.98% | -1.76% |
Volatility
SHY vs. RAAX - Volatility Comparison
The current volatility for iShares 1-3 Year Treasury Bond ETF (SHY) is 0.40%, while VanEck Inflation Allocation ETF (RAAX) has a volatility of 4.67%. This indicates that SHY experiences smaller price fluctuations and is considered to be less risky than RAAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SHY | RAAX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.40% | 4.67% | -4.27% |
Volatility (6M)Calculated over the trailing 6-month period | 0.95% | 12.21% | -11.26% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.33% | 14.18% | -12.85% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.99% | 15.70% | -13.71% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.57% | 15.79% | -14.22% |
SHY vs. RAAX - Expense Ratio Comparison
SHY has a 0.15% expense ratio, which is lower than RAAX's 0.78% expense ratio.
Dividends
SHY vs. RAAX - Dividend Comparison
SHY's dividend yield for the trailing twelve months is around 3.68%, more than RAAX's 1.99% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
RAAX VanEck Inflation Allocation ETF | 1.99% | 2.34% | 1.91% | 3.66% | 1.53% | 8.72% | 6.27% | 2.37% | 0.56% | 0.00% | 0.00% | 0.00% |
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 RAAX have a correlation of 0.07, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
RAAX has higher volatility (4.67%) compared to SHY (0.40%). In terms of maximum drawdown, SHY dropped -5.71% vs RAAX's -33.91%.
On 5-year performance, RAAX leads with 13.17% vs 1.74% for SHY. On fees, SHY is cheaper at 0.15% per year. On volatility, SHY has been the lower-risk option at 0.40%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, RAAX has performed better with a 13.17% return vs 1.74%. 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 0.78% for RAAX.
SHY has the higher dividend yield at 3.68%, compared with 1.99% for RAAX.
SHY is categorized as Government Bonds, while RAAX is Diversified Portfolio. They also come from different issuers: iShares and VanEck. Their fees differ too: 0.15% for SHY and 0.78% for RAAX.
SHY currently has the higher Sharpe Ratio (2.43 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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