SHY vs. VFSTX
SHY (iShares 1-3 Year Treasury Bond ETF) and VFSTX (Vanguard Short-Term Investment-Grade Fund Investor Shares) are both funds - SHY is a Government Bonds fund tracking the ICE US Treasury 1-3 Year Index, while VFSTX is a Total Bond Market fund managed by Vanguard. Over the past 10 years, SHY returned 1.65%/yr vs 2.54%/yr for VFSTX. A 0.73 correlation means they provide meaningful diversification when combined. SHY charges 0.15%/yr vs 0.20%/yr for VFSTX.
Performance
SHY vs. VFSTX - Performance Comparison
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Returns By Period
In the year-to-date period, SHY achieves a 0.43% return, which is significantly lower than VFSTX's 0.77% return. Over the past 10 years, SHY has underperformed VFSTX with an annualized return of 1.65%, while VFSTX has yielded a comparatively higher 2.54% annualized return.
SHY
- 1D
- -0.05%
- 1M
- 0.08%
- YTD
- 0.43%
- 6M
- 0.69%
- 1Y
- 3.32%
- 3Y*
- 4.03%
- 5Y*
- 1.71%
- 10Y*
- 1.65%
VFSTX
- 1D
- 0.00%
- 1M
- 0.30%
- YTD
- 0.77%
- 6M
- 1.05%
- 1Y
- 4.69%
- 3Y*
- 5.52%
- 5Y*
- 2.30%
- 10Y*
- 2.54%
SHY vs. VFSTX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SHY iShares 1-3 Year Treasury Bond ETF | 0.43% | 4.95% | 3.92% | 4.16% | -3.88% | -0.71% | 3.03% | 3.38% | 1.46% | 0.26% |
VFSTX Vanguard Short-Term Investment-Grade Fund Investor Shares | 0.77% | 6.75% | 4.98% | 6.06% | -5.84% | -0.70% | 5.16% | 5.75% | 0.87% | 2.02% |
Correlation
The correlation between SHY and VFSTX is 0.81, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.81 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.85 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.86 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.78 |
Correlation (All Time) Calculated using the full available price history since Jul 29, 2002 | 0.73 |
The correlation between SHY and VFSTX shifts across timeframes, from 0.73 (all time) to 0.86 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
SHY vs. VFSTX — Risk / Return Rank
SHY
VFSTX
SHY vs. VFSTX - 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 Short-Term Investment-Grade Fund Investor Shares (VFSTX). 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.
| SHY | VFSTX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.44 | ||
| Sortino ratioReturn per unit of downside risk | +0.49 | ||
| Omega ratioGain probability vs. loss probability | 1.51 | 1.46 | +0.05 |
| Calmar ratioReturn relative to maximum drawdown | 3.75 | 2.76 | +0.99 |
| Martin ratioReturn relative to average drawdown | 15.21 | 10.82 | +4.39 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| SHY | VFSTX | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.49 | 2.04 | +0.44 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.87 | 0.78 | +0.09 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 1.06 | 1.03 | +0.03 |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.28 | 1.51 | -0.23 |
Drawdowns
SHY vs. VFSTX - Drawdown Comparison
The maximum SHY drawdown since its inception was -5.71%, smaller than the maximum VFSTX drawdown of -9.35%. Use the drawdown chart below to compare losses from any high point for SHY and VFSTX.
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Drawdown Indicators
| SHY | VFSTX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.71% | -9.35% | +3.64% |
Max Drawdown (1Y)Largest decline over 1 year | -0.89% | -1.71% | +0.82% |
Max Drawdown (3Y)Largest decline over 3 years | -0.97% | -1.71% | +0.74% |
Max Drawdown (5Y)Largest decline over 5 years | -5.71% | -9.35% | +3.64% |
Max Drawdown (10Y)Largest decline over 10 years | -5.71% | -9.35% | +3.64% |
Current DrawdownCurrent decline from peak | -0.31% | -0.26% | -0.05% |
Average DrawdownAverage peak-to-trough decline | -0.52% | -1.12% | +0.60% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.22% | 0.43% | -0.21% |
Volatility
SHY vs. VFSTX - Volatility Comparison
The current volatility for iShares 1-3 Year Treasury Bond ETF (SHY) is 0.35%, while Vanguard Short-Term Investment-Grade Fund Investor Shares (VFSTX) has a volatility of 0.74%. This indicates that SHY experiences smaller price fluctuations and is considered to be less risky than VFSTX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SHY | VFSTX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.35% | 0.74% | -0.39% |
Volatility (6M)Calculated over the trailing 6-month period | 0.92% | 1.65% | -0.73% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.34% | 2.31% | -0.97% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.98% | 2.98% | -1.00% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.57% | 2.48% | -0.91% |
SHY vs. VFSTX - Expense Ratio Comparison
SHY has a 0.15% expense ratio, which is lower than VFSTX's 0.20% expense ratio. Despite the difference, 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. VFSTX - Dividend Comparison
SHY's dividend yield for the trailing twelve months is around 3.68%, less than VFSTX's 4.61% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
VFSTX Vanguard Short-Term Investment-Grade Fund Investor Shares | 4.61% | 4.48% | 4.06% | 3.05% | 1.93% | 1.70% | 2.24% | 2.83% | 2.68% | 2.00% | 2.04% | 1.99% |
Frequently Asked Questions
SHY and VFSTX have a correlation of 0.81, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VFSTX has higher volatility (0.74%) compared to SHY (0.35%). In terms of maximum drawdown, SHY dropped -5.71% vs VFSTX's -9.35%.
SHY currently has the higher Sharpe Ratio (2.49 vs 2.04), 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.
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