SHY vs. SGOV
Compare and contrast key facts about iShares 1-3 Year Treasury Bond ETF (SHY) and iShares 0-3 Month Treasury Bond ETF (SGOV).
SHY and SGOV are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. SHY is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. 1-3 Year Treasury Bond Index. It was launched on Jul 22, 2002. SGOV is a passively managed fund by iShares that tracks the performance of the ICE 0-3 Month US Treasury Bill Index. It was launched on May 26, 2020. Both SHY and SGOV are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: SHY or SGOV.
Key characteristics
| SHY | SGOV | |
|---|---|---|
| YTD Return | -0.09% | 1.75% |
| 1Y Return | 2.28% | 5.42% |
| 3Y Return (Ann) | -0.20% | 2.82% |
| Sharpe Ratio | 1.00 | 22.19 |
| Daily Std Dev | 2.07% | 0.25% |
| Max Drawdown | -5.71% | -0.03% |
| Current Drawdown | -0.74% | 0.00% |
Correlation
The correlation between SHY and SGOV is 0.05, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
SHY vs. SGOV - Performance Comparison
In the year-to-date period, SHY achieves a -0.09% return, which is significantly lower than SGOV's 1.75% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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SHY vs. SGOV - Expense Ratio Comparison
SHY has a 0.15% expense ratio, which is higher than SGOV'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%.
Risk-Adjusted Performance
SHY vs. SGOV - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 1-3 Year Treasury Bond ETF (SHY) and iShares 0-3 Month Treasury Bond ETF (SGOV). 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.
Dividends
SHY vs. SGOV - Dividend Comparison
SHY's dividend yield for the trailing twelve months is around 3.34%, less than SGOV's 5.13% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SHY iShares 1-3 Year Treasury Bond ETF | 3.34% | 2.99% | 1.30% | 0.26% | 0.94% | 2.12% | 1.72% | 0.98% | 0.71% | 0.54% | 0.36% | 0.26% |
SGOV iShares 0-3 Month Treasury Bond ETF | 5.13% | 4.87% | 1.45% | 0.03% | 0.05% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Drawdowns
SHY vs. SGOV - Drawdown Comparison
The maximum SHY drawdown since its inception was -5.71%, which is greater than SGOV's maximum drawdown of -0.03%. Use the drawdown chart below to compare losses from any high point for SHY and SGOV. For additional features, visit the drawdowns tool.
Volatility
SHY vs. SGOV - Volatility Comparison
iShares 1-3 Year Treasury Bond ETF (SHY) has a higher volatility of 0.58% compared to iShares 0-3 Month Treasury Bond ETF (SGOV) at 0.06%. This indicates that SHY's price experiences larger fluctuations and is considered to be riskier than SGOV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.