SHY vs. TLT
Compare and contrast key facts about iShares 1-3 Year Treasury Bond ETF (SHY) and iShares 20+ Year Treasury Bond ETF (TLT).
SHY and TLT 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. TLT is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. 20+ Year Treasury Bond Index. It was launched on Jul 26, 2002. Both SHY and TLT 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 TLT.
Key characteristics
| SHY | TLT | |
|---|---|---|
| YTD Return | -0.09% | -9.89% |
| 1Y Return | 2.28% | -12.66% |
| 3Y Return (Ann) | -0.20% | -11.71% |
| 5Y Return (Ann) | 0.91% | -4.40% |
| 10Y Return (Ann) | 0.89% | 0.17% |
| Sharpe Ratio | 1.00 | -0.79 |
| Daily Std Dev | 2.07% | 17.16% |
| Max Drawdown | -5.71% | -48.35% |
| Current Drawdown | -0.74% | -43.85% |
Correlation
The correlation between SHY and TLT is 0.61, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
SHY vs. TLT - Performance Comparison
In the year-to-date period, SHY achieves a -0.09% return, which is significantly higher than TLT's -9.89% return. Over the past 10 years, SHY has outperformed TLT with an annualized return of 0.89%, while TLT has yielded a comparatively lower 0.17% annualized 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. TLT - Expense Ratio Comparison
Both SHY and TLT have an expense ratio of 0.15%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Risk-Adjusted Performance
SHY vs. TLT - 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 20+ Year Treasury Bond ETF (TLT). 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. TLT - Dividend Comparison
SHY's dividend yield for the trailing twelve months is around 3.34%, less than TLT's 3.93% 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% |
TLT iShares 20+ Year Treasury Bond ETF | 3.93% | 3.38% | 2.67% | 1.50% | 1.50% | 2.27% | 2.63% | 2.43% | 2.60% | 2.61% | 2.67% | 3.26% |
Drawdowns
SHY vs. TLT - Drawdown Comparison
The maximum SHY drawdown since its inception was -5.71%, smaller than the maximum TLT drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for SHY and TLT. For additional features, visit the drawdowns tool.
Volatility
SHY vs. TLT - Volatility Comparison
The current volatility for iShares 1-3 Year Treasury Bond ETF (SHY) is 0.58%, while iShares 20+ Year Treasury Bond ETF (TLT) has a volatility of 4.12%. This indicates that SHY experiences smaller price fluctuations and is considered to be less risky than TLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.