SHY vs. SCHQ
SHY (iShares 1-3 Year Treasury Bond ETF) and SCHQ (Schwab Long-Term U.S. Treasury ETF) are both Government Bonds funds - SHY tracks the ICE US Treasury 1-3 Year Index while SCHQ tracks the Bloomberg U.S. Long Treasury Index. Both are passively managed. Over the past 5 years, SHY returned 1.75%/yr vs -5.55%/yr for SCHQ. A 0.61 correlation means they provide meaningful diversification when combined. SHY charges 0.15%/yr vs 0.03%/yr for SCHQ.
Performance
SHY vs. SCHQ - Performance Comparison
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Returns By Period
In the year-to-date period, SHY achieves a 0.43% return, which is significantly lower than SCHQ's 0.57% return.
SHY
- 1D
- 0.07%
- 1M
- 0.11%
- YTD
- 0.43%
- 6M
- 0.60%
- 1Y
- 2.87%
- 3Y*
- 4.10%
- 5Y*
- 1.75%
- 10Y*
- 1.62%
SCHQ
- 1D
- 0.19%
- 1M
- 2.15%
- YTD
- 0.57%
- 6M
- 0.44%
- 1Y
- 4.14%
- 3Y*
- -0.70%
- 5Y*
- -5.55%
- 10Y*
- —
SHY vs. SCHQ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|---|---|---|
SHY iShares 1-3 Year Treasury Bond ETF | 0.43% | 4.95% | 3.92% | 4.16% | -3.88% | -0.71% | 3.03% | 0.11% |
SCHQ Schwab Long-Term U.S. Treasury ETF | 0.57% | 5.50% | -6.44% | 3.43% | -29.44% | -4.86% | 17.73% | -4.20% |
Correlation
The correlation between SHY and SCHQ is 0.66, 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 | 0.66 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.67 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.65 |
Correlation (All Time) Calculated using the full available price history since Oct 10, 2019 | 0.61 |
The correlation between SHY and SCHQ has been stable across timeframes, ranging from 0.61 to 0.67 - a consistent structural relationship.
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Return for Risk
SHY vs. SCHQ — Risk / Return Rank
SHY
SCHQ
SHY vs. SCHQ - 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 Long-Term U.S. Treasury ETF (SCHQ). 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 | SCHQ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.62 | ||
| Sortino ratioReturn per unit of downside risk | +2.56 | ||
| Omega ratioGain probability vs. loss probability | 1.42 | 1.09 | +0.34 |
| Calmar ratioReturn relative to maximum drawdown | 3.24 | 0.59 | +2.65 |
| Martin ratioReturn relative to average drawdown | 12.62 | 1.46 | +11.15 |
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Drawdowns
SHY vs. SCHQ - Drawdown Comparison
The maximum SHY drawdown since its inception was -5.71%, smaller than the maximum SCHQ drawdown of -46.13%. Use the drawdown chart below to compare losses from any high point for SHY and SCHQ.
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Drawdown Indicators
| SHY | SCHQ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.71% | -46.13% | +40.42% |
Max Drawdown (1Y)Largest decline over 1 year | -0.89% | -7.01% | +6.12% |
Max Drawdown (3Y)Largest decline over 3 years | -0.97% | -17.65% | +16.68% |
Max Drawdown (5Y)Largest decline over 5 years | -5.71% | -40.93% | +35.22% |
Max Drawdown (10Y)Largest decline over 10 years | -5.71% | — | — |
Current DrawdownCurrent decline from peak | -0.31% | -36.18% | +35.87% |
Average DrawdownAverage peak-to-trough decline | -0.52% | -26.43% | +25.91% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.23% | 2.84% | -2.61% |
Volatility
SHY vs. SCHQ - Volatility Comparison
The current volatility for iShares 1-3 Year Treasury Bond ETF (SHY) is 0.50%, while Schwab Long-Term U.S. Treasury ETF (SCHQ) has a volatility of 2.07%. This indicates that SHY experiences smaller price fluctuations and is considered to be less risky than SCHQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SHY | SCHQ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.50% | 2.07% | -1.57% |
Volatility (6M)Calculated over the trailing 6-month period | 1.01% | 6.07% | -5.06% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.37% | 8.65% | -7.28% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.99% | 14.49% | -12.50% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.57% | 15.29% | -13.72% |
SHY vs. SCHQ - Expense Ratio Comparison
SHY has a 0.15% expense ratio, which is higher than SCHQ'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. SCHQ - Dividend Comparison
SHY's dividend yield for the trailing twelve months is around 3.68%, less than SCHQ's 4.74% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SCHQ Schwab Long-Term U.S. Treasury ETF | 4.74% | 4.54% | 4.58% | 3.79% | 2.88% | 1.69% | 1.51% | 0.44% | 0.00% | 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 SCHQ have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SCHQ has higher volatility (2.07%) compared to SHY (0.50%). In terms of maximum drawdown, SHY dropped -5.71% vs SCHQ's -46.13%.
On 5-year performance, SHY leads with 1.75% vs -5.55% for SCHQ. On fees, SCHQ is cheaper at 0.03% per year. On volatility, SHY has been the lower-risk option at 0.50%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, SHY has performed better with a 1.75% return vs -5.55%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SCHQ is cheaper with a 0.03% expense ratio, compared with 0.15% for SHY.
SCHQ has the higher dividend yield at 4.74%, compared with 3.68% for SHY.
SHY tracks ICE US Treasury 1-3 Year Index, while SCHQ tracks Bloomberg U.S. Long Treasury Index. They also come from different issuers: iShares and Charles Schwab. Their fees differ too: 0.15% for SHY and 0.03% for SCHQ.
SHY currently has the higher Sharpe Ratio (2.10 vs 0.48), 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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