PortfoliosLab logoPortfoliosLab logo

Documentation

Upgrade your plan
SHY vs. VDC
Performance
Return for Risk
Drawdowns
Volatility
Dividends

SHY vs. VDC

Last updated Jun 9, 2026

SHY (iShares 1-3 Year Treasury Bond ETF) and VDC (Vanguard Consumer Staples ETF) are both exchange-traded funds - SHY is a Government Bonds fund tracking the ICE US Treasury 1-3 Year Index, while VDC is a Consumer Staples Equities fund tracking the MSCI US Investable Market Consumer Staples 25/50 Index. Both are passively managed. Over the past 10 years, SHY returned 1.63%/yr vs 7.63%/yr for VDC. At a correlation of -0.09, they often move in opposite directions. SHY charges 0.15%/yr vs 0.09%/yr for VDC.

Performance

SHY vs. VDC - Performance Comparison

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

Loading charts...

Returns By Period

In the year-to-date period, SHY achieves a 0.34% return, which is significantly lower than VDC's 7.19% return. Over the past 10 years, SHY has underperformed VDC with an annualized return of 1.63%, while VDC has yielded a comparatively higher 7.63% annualized return.

SHY

1D
0.05%
1M
-0.19%
YTD
0.34%
6M
0.74%
1Y
3.33%
3Y*
4.04%
5Y*
1.70%
10Y*
1.63%

VDC

1D
-0.25%
1M
-2.19%
YTD
7.19%
6M
7.44%
1Y
4.07%
3Y*
8.08%
5Y*
6.63%
10Y*
7.63%
*Multi-year figures are annualized to reflect compound growth (CAGR)

SHY vs. VDC - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
SHY
iShares 1-3 Year Treasury Bond ETF		0.34%4.95%3.92%4.16%-3.88%-0.71%3.03%3.38%1.46%0.26%
VDC
Vanguard Consumer Staples ETF		7.19%2.17%13.30%2.38%-1.79%17.64%10.86%26.11%-7.79%11.85%

Correlation

The correlation between SHY and VDC is 0.24, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.24

Correlation (3Y)
Calculated over the trailing 3-year period

0.18

Correlation (5Y)
Calculated over the trailing 5-year period

0.19

Correlation (10Y)
Calculated over the trailing 10-year period

0.08

Correlation (All Time)
Calculated using the full available price history since Jan 30, 2004

-0.09

The correlation between SHY and VDC shifts across timeframes, from -0.09 (all time) to 0.24 (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.

iShares 1-3 Year Treasury Bond ETF

Vanguard Consumer Staples ETF

Often compared with SHY:
SHY vs. SGOVSHY vs. VGSHSHY vs. SHVSHY vs. TLTSHY vs. IEFSHY vs. BILSHY vs. BSV
Often compared with VDC:
VDC vs. XLPVDC vs. VOOVDC vs. FSTAVDC vs. VCRVDC vs. IYKVDC vs. VTVVDC vs. KXI

Return for Risk

SHY vs. VDC — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
SHY
SHY Risk / Return Rank: 8686
Overall Rank
SHY Sharpe Ratio Rank: 8585
Sharpe Ratio Rank
SHY Sortino Ratio Rank: 9292
Sortino Ratio Rank
SHY Omega Ratio Rank: 8989
Omega Ratio Rank
SHY Calmar Ratio Rank: 8080
Calmar Ratio Rank
SHY Martin Ratio Rank: 8282
Martin Ratio Rank
VDC
VDC Risk / Return Rank: 1414
Overall Rank
VDC Sharpe Ratio Rank: 1515
Sharpe Ratio Rank
VDC Sortino Ratio Rank: 1414
Sortino Ratio Rank
VDC Omega Ratio Rank: 1414
Omega Ratio Rank
VDC Calmar Ratio Rank: 1515
Calmar Ratio Rank
VDC Martin Ratio Rank: 1414
Martin Ratio Rank
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. VDC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares 1-3 Year Treasury Bond ETF (SHY) and Vanguard Consumer Staples ETF (VDC). 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.

SHYVDCDifference
Sharpe ratioReturn per unit of total volatility
2.51
0.33

+2.18

Sortino ratioReturn per unit of downside risk
4.11
0.56

+3.55

Omega ratioGain probability vs. loss probability

1.51

1.06

+0.45

Calmar ratioReturn relative to maximum drawdown

3.76

0.44

+3.32

Martin ratioReturn relative to average drawdown

15.12

0.90

+14.22

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SHY vs. VDC - Sharpe Ratio Comparison

The current SHY Sharpe Ratio is 2.51, which is higher than the VDC Sharpe Ratio of 0.33. The chart below compares the historical Sharpe Ratios of SHY and VDC, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Loading charts...

Sharpe Ratios by Period

SHYVDCDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.51

0.33

+2.18

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.86

0.51

+0.35

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

1.04

0.52

+0.52

Sharpe Ratio (All Time)

Calculated using the full available price history

1.28

0.67

+0.61

Drawdowns

SHY vs. VDC - Drawdown Comparison

The maximum SHY drawdown since its inception was -5.71%, smaller than the maximum VDC drawdown of -34.24%. Use the drawdown chart below to compare losses from any high point for SHY and VDC.

Loading charts...

Drawdown Indicators

SHYVDCDifference

Max Drawdown

Largest peak-to-trough decline

-5.71%

-34.24%

+28.53%

Max Drawdown (1Y)

Largest decline over 1 year

-0.89%

-9.28%

+8.39%

Max Drawdown (3Y)

Largest decline over 3 years

-0.97%

-11.78%

+10.81%

Max Drawdown (5Y)

Largest decline over 5 years

-5.71%

-16.55%

+10.84%

Max Drawdown (10Y)

Largest decline over 10 years

-5.71%

-25.31%

+19.60%

Current Drawdown

Current decline from peak

-0.39%

-7.27%

+6.88%

Average Drawdown

Average peak-to-trough decline

-0.52%

-3.73%

+3.21%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.22%

4.53%

-4.31%

Volatility

SHY vs. VDC - Volatility Comparison

The current volatility for iShares 1-3 Year Treasury Bond ETF (SHY) is 0.38%, while Vanguard Consumer Staples ETF (VDC) has a volatility of 4.47%. This indicates that SHY experiences smaller price fluctuations and is considered to be less risky than VDC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Loading charts...

Volatility by Period

SHYVDCDifference

Volatility (1M)

Calculated over the trailing 1-month period

0.38%

4.47%

-4.09%

Volatility (6M)

Calculated over the trailing 6-month period

0.95%

9.87%

-8.92%

Volatility (1Y)

Calculated over the trailing 1-year period

1.33%

12.43%

-11.10%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

1.99%

13.15%

-11.16%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

1.57%

14.65%

-13.08%

SHY vs. VDC - Expense Ratio Comparison

SHY has a 0.15% expense ratio, which is higher than VDC'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. VDC - Dividend Comparison

SHY's dividend yield for the trailing twelve months is around 3.69%, more than VDC's 2.14% yield.

PositionTTM20252024202320222021202020192018201720162015
SHY
iShares 1-3 Year Treasury Bond ETF		3.69%3.81%3.92%2.99%1.30%0.26%0.94%2.12%1.72%0.98%0.71%0.54%
VDC
Vanguard Consumer Staples ETF		2.14%2.26%2.33%2.65%2.37%2.14%2.50%2.44%2.78%2.52%2.39%2.55%

Frequently Asked Questions

SHY and VDC have a correlation of 0.24, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VDC has higher volatility (4.47%) compared to SHY (0.38%). In terms of maximum drawdown, SHY dropped -5.71% vs VDC's -34.24%.

On 10-year performance, VDC leads with 7.63% vs 1.63% for SHY. On fees, VDC 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, VDC has performed better with a 7.63% return vs 1.63%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VDC is cheaper with a 0.09% expense ratio, compared with 0.15% for SHY.

SHY has the higher dividend yield at 3.69%, compared with 2.14% for VDC.

SHY is categorized as Government Bonds, while VDC is Consumer Staples Equities. SHY tracks ICE US Treasury 1-3 Year Index, while VDC tracks MSCI US Investable Market Consumer Staples 25/50 Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.15% for SHY and 0.09% for VDC.

SHY currently has the higher Sharpe Ratio (2.51 vs 0.33), 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.

Portfolio Optimizer

Find the right allocation for SHY and VDC

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