SHY vs. SHLD

Last updated Jun 14, 2026

SHY (iShares 1-3 Year Treasury Bond ETF) and SHLD (Global X Defense Tech ETF) are both exchange-traded funds - SHY is a Government Bonds fund tracking the ICE US Treasury 1-3 Year Index, while SHLD is a Aerospace & Defense fund tracking the Global X Defense Tech Index. Both are passively managed. Over the past year, SHY returned 3.29% vs 8.26% for SHLD. At a 0.09 correlation, their price movements are largely independent. SHY charges 0.15%/yr vs 0.50%/yr for SHLD.

Performance

SHY vs. SHLD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares 1-3 Year Treasury Bond ETF (SHY) and Global X Defense Tech ETF (SHLD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SHY achieves a 0.55% return, which is significantly higher than SHLD's -1.50% return.

SHY

• 1D: -0.02%
• 1M: 0.31%
• YTD: 0.55%
• 6M: 0.80%
• 1Y: 3.29%
• 3Y*: 4.15%
• 5Y*: 1.74%
• 10Y*: 1.65%

SHLD

• 1D: -2.04%
• 1M: 2.37%
• YTD: -1.50%
• 6M: -1.03%
• 1Y: 8.26%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

SHY vs. SHLD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
SHY iShares 1-3 Year Treasury Bond ETF	0.55%	4.95%	3.92%	2.61%
SHLD Global X Defense Tech ETF	-1.50%	74.16%	35.03%	12.89%

Correlation

The correlation between SHY and SHLD is 0.16, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.16
Correlation (All Time) Calculated using the full available price history since Sep 13, 2023	0.09

Return for Risk

SHY vs. SHLD — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

SHY

SHY Risk / Return Rank: 86
SHY Sharpe Ratio Rank: 86
SHY Sortino Ratio Rank: 92
SHY Omega Ratio Rank: 89
SHY Calmar Ratio Rank: 80
SHY Martin Ratio Rank: 83

SHLD

SHLD Risk / Return Rank: 16
SHLD Sharpe Ratio Rank: 17
SHLD Sortino Ratio Rank: 17
SHLD Omega Ratio Rank: 16
SHLD Calmar Ratio Rank: 16
SHLD Martin Ratio Rank: 16

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. SHLD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares 1-3 Year Treasury Bond ETF (SHY) and Global X Defense Tech ETF (SHLD). 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	SHLD	Difference
Sharpe ratio: Return per unit of total volatility	2.43	0.43	+2.00
Sortino ratio: Return per unit of downside risk	3.97	0.78	+3.19
Omega ratio: Gain probability vs. loss probability	1.50	1.09	+0.41
Calmar ratio: Return relative to maximum drawdown	3.64	0.52	+3.12
Martin ratio: Return relative to average drawdown	14.45	1.28	+13.17

SHY vs. SHLD - Sharpe Ratio Comparison

The current SHY Sharpe Ratio is 2.43, which is higher than the SHLD Sharpe Ratio of 0.43. The chart below compares the historical Sharpe Ratios of SHY and SHLD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

SHY vs. SHLD - Drawdown Comparison

The maximum SHY drawdown since its inception was -5.71%, smaller than the maximum SHLD drawdown of -20.10%. Use the drawdown chart below to compare losses from any high point for SHY and SHLD.

Drawdown Indicators

	SHY	SHLD	Difference
Max Drawdown Largest peak-to-trough decline	-5.71%	-20.10%	+14.39%
Max Drawdown (1Y) Largest decline over 1 year	-0.89%	-20.10%	+19.21%
Max Drawdown (3Y) Largest decline over 3 years	-0.97%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-5.71%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-5.71%	—	—
Current Drawdown Current decline from peak	-0.18%	-18.20%	+18.02%
Average Drawdown Average peak-to-trough decline	-0.52%	-3.34%	+2.82%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.22%	8.12%	-7.90%

Volatility

SHY vs. SHLD - Volatility Comparison

The current volatility for iShares 1-3 Year Treasury Bond ETF (SHY) is 0.40%, while Global X Defense Tech ETF (SHLD) has a volatility of 9.05%. This indicates that SHY experiences smaller price fluctuations and is considered to be less risky than SHLD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SHY	SHLD	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.40%	9.05%	-8.65%
Volatility (6M) Calculated over the trailing 6-month period	0.95%	19.94%	-18.99%
Volatility (1Y) Calculated over the trailing 1-year period	1.33%	24.55%	-23.22%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.99%	21.29%	-19.30%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.57%	21.29%	-19.72%

SHY vs. SHLD - Expense Ratio Comparison

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

Dividends

SHY vs. SHLD - Dividend Comparison

SHY's dividend yield for the trailing twelve months is around 3.68%, more than SHLD's 0.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SHLD Global X Defense Tech ETF	0.56%	0.55%	0.53%	0.26%	0.00%	0.00%	0.00%	0.00%	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

Can I hold both SHY and SHLD in my portfolio?

SHY and SHLD have a correlation of 0.16, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SHY or SHLD?

SHLD has higher volatility (9.05%) compared to SHY (0.40%). In terms of maximum drawdown, SHY dropped -5.71% vs SHLD's -20.10%.

Which ETF is better, SHY or SHLD?

On 1-year performance, SHLD leads with 8.26% vs 3.29% 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.

Which ETF has performed better, SHY or SHLD?

Over the 1-year period, SHLD has performed better with a 8.26% return vs 3.29%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SHY or SHLD?

SHY is cheaper with a 0.15% expense ratio, compared with 0.50% for SHLD.

Which ETF pays a higher dividend yield, SHY or SHLD?

SHY has the higher dividend yield at 3.68%, compared with 0.56% for SHLD.

What is the main difference between SHY and SHLD?

SHY is categorized as Government Bonds, while SHLD is Aerospace & Defense. SHY tracks ICE US Treasury 1-3 Year Index, while SHLD tracks Global X Defense Tech Index. They also come from different issuers: iShares and Global X. Their fees differ too: 0.15% for SHY and 0.50% for SHLD.

Which has better risk-adjusted returns?

SHY currently has the higher Sharpe Ratio (2.43 vs 0.43), 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.