SHY vs. SCHO
SHY (iShares 1-3 Year Treasury Bond ETF) and SCHO (Schwab Short-Term U.S. Treasury ETF) are both Government Bonds funds - SHY tracks the ICE US Treasury 1-3 Year Index while SCHO tracks the Bloomberg U.S. Treasury 1-3 Year Index. Both are passively managed. Over the past 10 years, SHY returned 1.65%/yr vs 1.71%/yr for SCHO. Their correlation of 0.83 suggests significant overlap in exposure. SHY charges 0.15%/yr vs 0.03%/yr for SCHO.
Performance
SHY vs. SCHO - Performance Comparison
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Returns By Period
The year-to-date returns for both stocks are quite close, with SHY having a 0.43% return and SCHO slightly lower at 0.42%. Both investments have delivered pretty close results over the past 10 years, with SHY having a 1.65% annualized return and SCHO not far ahead at 1.71%.
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%
SCHO
- 1D
- -0.04%
- 1M
- 0.06%
- YTD
- 0.42%
- 6M
- 0.78%
- 1Y
- 3.39%
- 3Y*
- 4.15%
- 5Y*
- 1.80%
- 10Y*
- 1.71%
SHY vs. SCHO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
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% |
SCHO Schwab Short-Term U.S. Treasury ETF | 0.42% | 5.49% | 3.65% | 4.31% | -3.87% | -0.64% | 3.11% | 3.47% | 1.37% | 0.33% |
Correlation
The correlation between SHY and SCHO is 0.86, 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 | 0.86 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.92 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.94 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.88 |
Correlation (All Time) Calculated using the full available price history since Aug 6, 2010 | 0.83 |
The correlation between SHY and SCHO shifts across timeframes, from 0.83 (all time) to 0.94 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
SHY vs. SCHO — Risk / Return Rank
SHY
SCHO
SHY vs. SCHO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 1-3 Year Treasury Bond ETF (SHY) and Schwab Short-Term U.S. Treasury ETF (SCHO). 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.
| SHY | SCHO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | 0.00 | ||
| Sortino ratioReturn per unit of downside risk | +0.04 | ||
| Omega ratioGain probability vs. loss probability | 1.51 | 1.50 | +0.01 |
| Calmar ratioReturn relative to maximum drawdown | 3.75 | 3.96 | -0.21 |
| Martin ratioReturn relative to average drawdown | 15.21 | 17.03 | -1.82 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| SHY | SCHO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.49 | 2.48 | 0.00 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.87 | 0.91 | -0.05 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 1.06 | 1.10 | -0.05 |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.28 | 0.99 | +0.29 |
Drawdowns
SHY vs. SCHO - Drawdown Comparison
The maximum SHY drawdown since its inception was -5.71%, roughly equal to the maximum SCHO drawdown of -5.69%. Use the drawdown chart below to compare losses from any high point for SHY and SCHO.
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Drawdown Indicators
| SHY | SCHO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.71% | -5.69% | -0.02% |
Max Drawdown (1Y)Largest decline over 1 year | -0.89% | -0.86% | -0.03% |
Max Drawdown (3Y)Largest decline over 3 years | -0.97% | -0.98% | +0.01% |
Max Drawdown (5Y)Largest decline over 5 years | -5.71% | -5.69% | -0.02% |
Max Drawdown (10Y)Largest decline over 10 years | -5.71% | -5.69% | -0.02% |
Current DrawdownCurrent decline from peak | -0.31% | -0.27% | -0.04% |
Average DrawdownAverage peak-to-trough decline | -0.52% | -0.61% | +0.09% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.22% | 0.20% | +0.02% |
Volatility
SHY vs. SCHO - Volatility Comparison
The current volatility for iShares 1-3 Year Treasury Bond ETF (SHY) is 0.35%, while Schwab Short-Term U.S. Treasury ETF (SCHO) has a volatility of 0.41%. This indicates that SHY experiences smaller price fluctuations and is considered to be less risky than SCHO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SHY | SCHO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.35% | 0.41% | -0.06% |
Volatility (6M)Calculated over the trailing 6-month period | 0.92% | 0.90% | +0.02% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.34% | 1.37% | -0.03% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.98% | 1.98% | 0.00% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.57% | 1.56% | +0.01% |
SHY vs. SCHO - Expense Ratio Comparison
SHY has a 0.15% expense ratio, which is higher than SCHO's 0.03% 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. SCHO - Dividend Comparison
SHY's dividend yield for the trailing twelve months is around 3.68%, less than SCHO's 3.91% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SCHO Schwab Short-Term U.S. Treasury ETF | 3.91% | 4.06% | 4.29% | 3.76% | 1.34% | 0.41% | 1.27% | 2.27% | 1.60% | 1.12% | 0.82% | 0.68% |
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 SCHO have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SCHO has higher volatility (0.41%) compared to SHY (0.35%). In terms of maximum drawdown, SHY dropped -5.71% vs SCHO's -5.69%.
On 10-year performance, SCHO leads with 1.71% vs 1.65% for SHY. On fees, SCHO is cheaper at 0.03% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, SCHO has performed better with a 1.71% return vs 1.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SCHO is cheaper with a 0.03% expense ratio, compared with 0.15% for SHY.
SCHO has the higher dividend yield at 3.91%, compared with 3.68% for SHY.
SHY tracks ICE US Treasury 1-3 Year Index, while SCHO tracks Bloomberg U.S. Treasury 1-3 Year Index. They also come from different issuers: iShares and Charles Schwab. Their fees differ too: 0.15% for SHY and 0.03% for SCHO.
SHY currently has the higher Sharpe Ratio (2.49 vs 2.48), 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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