SHY vs. SPY
SHY (iShares 1-3 Year Treasury Bond ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - SHY is a Government Bonds fund tracking the ICE US Treasury 1-3 Year Index, while SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, SHY returned 1.65%/yr vs 15.07%/yr for SPY. Their -0.19 correlation means they have often moved in opposite directions in the past. SHY charges 0.15%/yr vs 0.09%/yr for SPY.
Performance
SHY vs. SPY - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, SHY achieves a 0.76% return, which is significantly lower than SPY's 10.13% return. Over the past 10 years, SHY has underperformed SPY with an annualized return of 1.65%, while SPY has yielded a comparatively higher 15.07% annualized return.
SHY
- 1D
- -0.01%
- 1M
- 0.07%
- 6M
- 0.55%
- YTD
- 0.76%
- 1Y
- 2.53%
- 3Y*
- 4.19%
- 5Y*
- 1.78%
- 10Y*
- 1.65%
- ALL TIME*
- 1.95%
SPY
- 1D
- 0.72%
- 1M
- 0.30%
- 6M
- 8.53%
- YTD
- 10.13%
- 1Y
- 21.49%
- 3Y*
- 19.32%
- 5Y*
- 12.76%
- 10Y*
- 15.07%
- ALL TIME*
- 10.79%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $257.73M | $267.74M | $273.79M | |
| $37.27B | $35.99B | $39.23B |
SHY vs. SPY - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SHY iShares 1-3 Year Treasury Bond ETF | 0.76% | 4.95% | 3.92% | 4.16% | -3.88% | -0.71% | 3.03% | 3.38% | 1.46% | 0.26% |
SPY State Street SPDR S&P 500 ETF | 10.13% | 17.72% | 24.89% | 26.18% | -18.18% | 28.73% | 18.33% | 31.22% | -4.57% | 21.71% |
Correlation
The correlation between SHY and SPY is 0.23, which is low. Their historical price movements had little consistent relationship.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.23 |
Correlation (3Y) Balances recent behavior with more history. | 0.14 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.13 |
Correlation (10Y) Provides a long-term view across more market conditions. | -0.02 |
Correlation (All Time) Calculated using the full available price history since Jul 26, 2002 | -0.19 |
The correlation between SHY and SPY shifts across timeframes, from -0.19 (all time) to 0.23 (1 year), reflecting how their relationship changes across market environments.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
SHY vs. SPY — Risk / Return Rank
SHY
SPY
SHY vs. SPY - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 1-3 Year Treasury Bond ETF (SHY) and State Street SPDR S&P 500 ETF (SPY). 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 | SPY | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.69 | ||
| Sortino ratioReturn per unit of downside risk | +1.40 | ||
| Omega ratioGain probability vs. loss probability | 1.45 | 1.27 | +0.17 |
| Calmar ratioReturn relative to maximum drawdown | 3.43 | 2.20 | +1.23 |
| Martin ratioReturn relative to average drawdown | 13.40 | 9.40 | +4.00 |
Loading charts...
Drawdowns
SHY vs. SPY - Drawdown Comparison
The maximum SHY drawdown since its inception was -5.71%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for SHY and SPY.
Loading charts...
Drawdown Indicators
| SHY | SPY | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.71% | -55.19% | +49.48% |
Max Drawdown (1Y)Largest decline over 1 year | -0.89% | -8.88% | +7.99% |
Max Drawdown (3Y)Largest decline over 3 years | -0.97% | -18.76% | +17.79% |
Max Drawdown (5Y)Largest decline over 5 years | -5.71% | -24.50% | +18.79% |
Max Drawdown (10Y)Largest decline over 10 years | -5.71% | -33.72% | +28.01% |
Current DrawdownCurrent decline from peak | -0.01% | -1.40% | +1.39% |
Average DrawdownAverage peak-to-trough decline | -0.52% | -9.01% | +8.49% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.23% | 2.08% | -1.85% |
Volatility
SHY vs. SPY - Volatility Comparison
The current volatility for iShares 1-3 Year Treasury Bond ETF (SHY) is 0.38%, while State Street SPDR S&P 500 ETF (SPY) has a volatility of 3.58%. This indicates that SHY experiences smaller price fluctuations and is considered to be less risky than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| SHY | SPY | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.38% | 3.58% | -3.20% |
Volatility (6M)Calculated over the trailing 6-month period | 1.07% | 10.14% | -9.07% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.38% | 12.89% | -11.51% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.00% | 17.18% | -15.18% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.57% | 17.95% | -16.38% |
SHY vs. SPY - Expense Ratio Comparison
SHY has a 0.15% expense ratio, which is higher than SPY's 0.09% 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. SPY - Dividend Comparison
SHY's dividend yield for the trailing twelve months is around 3.65%, more than SPY's 1.01% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SHY iShares 1-3 Year Treasury Bond ETF | 3.32% | 3.81% | 3.92% | 2.99% | 1.30% | 0.26% | 0.94% | 2.12% | 1.72% | 0.98% | 0.71% | 0.54% |
SPY State Street SPDR S&P 500 ETF | 1.01% | 1.07% | 1.21% | 1.40% | 1.65% | 1.20% | 1.52% | 1.75% | 2.04% | 1.80% | 2.03% | 2.06% |
Frequently Asked Questions
SHY and SPY have a correlation of 0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SPY has higher volatility (3.58%) compared to SHY (0.38%). In terms of maximum drawdown, SHY dropped -5.71% vs SPY's -55.19%.
On 10-year performance, SPY leads with 15.07% vs 1.65% for SHY. On fees, SPY is cheaper at 0.09% per year. On volatility, SHY has been the lower-risk option at 0.38%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, SPY has performed better with a 15.07% return vs 1.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SPY is cheaper with a 0.09% expense ratio, compared with 0.15% for SHY.
SHY has the higher dividend yield at 3.32%, compared with 1.01% for SPY.
SHY is categorized as Government Bonds, while SPY is S&P 500. SHY tracks ICE US Treasury 1-3 Year Index, while SPY tracks S&P 500 Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.15% for SHY and 0.09% for SPY.
SHY currently has the higher Sharpe Ratio (2.21 vs 1.52), 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.
Find the right allocation for SHY and SPY
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer