SHY vs. VGIT
SHY (iShares 1-3 Year Treasury Bond ETF) and VGIT (Vanguard Intermediate-Term Treasury ETF) are both Government Bonds funds - SHY tracks the ICE US Treasury 1-3 Year Index while VGIT tracks the Bloomberg U.S. Treasury 3-10 Year Index. Both are passively managed. Over the past 10 years, SHY returned 1.65%/yr vs 1.20%/yr for VGIT. Their correlation of 0.81 suggests significant overlap in exposure. SHY charges 0.15%/yr vs 0.03%/yr for VGIT.
Performance
SHY vs. VGIT - Performance Comparison
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Returns By Period
In the year-to-date period, SHY achieves a 0.55% return, which is significantly higher than VGIT's -0.29% return. Over the past 10 years, SHY has outperformed VGIT with an annualized return of 1.65%, while VGIT has yielded a comparatively lower 1.20% annualized return.
SHY
- 1D
- -0.02%
- 1M
- 0.19%
- YTD
- 0.55%
- 6M
- 0.80%
- 1Y
- 3.29%
- 3Y*
- 4.15%
- 5Y*
- 1.74%
- 10Y*
- 1.65%
VGIT
- 1D
- -0.12%
- 1M
- 0.16%
- YTD
- -0.29%
- 6M
- 0.04%
- 1Y
- 3.43%
- 3Y*
- 3.69%
- 5Y*
- 0.01%
- 10Y*
- 1.20%
SHY vs. VGIT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SHY iShares 1-3 Year Treasury Bond ETF | 0.55% | 4.95% | 3.92% | 4.16% | -3.88% | -0.71% | 3.03% | 3.38% | 1.46% | 0.26% |
VGIT Vanguard Intermediate-Term Treasury ETF | -0.29% | 7.34% | 1.39% | 4.28% | -10.53% | -2.64% | 7.71% | 6.19% | 1.35% | 1.70% |
Correlation
The correlation between SHY and VGIT is 0.91, 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 | 0.91 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.90 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.90 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.86 |
Correlation (All Time) Calculated using the full available price history since Nov 23, 2009 | 0.81 |
The correlation between SHY and VGIT has been stable across timeframes, ranging from 0.81 to 0.91 - a consistent structural relationship.
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Return for Risk
SHY vs. VGIT — Risk / Return Rank
SHY
VGIT
SHY vs. VGIT - 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 Intermediate-Term Treasury ETF (VGIT). 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 | VGIT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.47 | ||
| Sortino ratioReturn per unit of downside risk | +2.50 | ||
| Omega ratioGain probability vs. loss probability | 1.50 | 1.17 | +0.33 |
| Calmar ratioReturn relative to maximum drawdown | 3.64 | 1.13 | +2.51 |
| Martin ratioReturn relative to average drawdown | 14.45 | 3.18 | +11.27 |
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Drawdowns
SHY vs. VGIT - Drawdown Comparison
The maximum SHY drawdown since its inception was -5.71%, smaller than the maximum VGIT drawdown of -16.05%. Use the drawdown chart below to compare losses from any high point for SHY and VGIT.
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Drawdown Indicators
| SHY | VGIT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.71% | -16.05% | +10.34% |
Max Drawdown (1Y)Largest decline over 1 year | -0.89% | -2.83% | +1.94% |
Max Drawdown (3Y)Largest decline over 3 years | -0.97% | -4.34% | +3.37% |
Max Drawdown (5Y)Largest decline over 5 years | -5.71% | -15.02% | +9.31% |
Max Drawdown (10Y)Largest decline over 10 years | -5.71% | -16.05% | +10.34% |
Current DrawdownCurrent decline from peak | -0.18% | -2.22% | +2.04% |
Average DrawdownAverage peak-to-trough decline | -0.52% | -3.52% | +3.00% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.22% | 1.01% | -0.79% |
Volatility
SHY vs. VGIT - Volatility Comparison
The current volatility for iShares 1-3 Year Treasury Bond ETF (SHY) is 0.40%, while Vanguard Intermediate-Term Treasury ETF (VGIT) has a volatility of 1.15%. This indicates that SHY experiences smaller price fluctuations and is considered to be less risky than VGIT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SHY | VGIT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.40% | 1.15% | -0.75% |
Volatility (6M)Calculated over the trailing 6-month period | 0.95% | 2.40% | -1.45% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.33% | 3.34% | -2.01% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.99% | 5.38% | -3.39% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.57% | 4.50% | -2.93% |
SHY vs. VGIT - Expense Ratio Comparison
SHY has a 0.15% expense ratio, which is higher than VGIT's 0.03% 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. VGIT - Dividend Comparison
SHY's dividend yield for the trailing twelve months is around 3.68%, less than VGIT's 3.86% 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% |
VGIT Vanguard Intermediate-Term Treasury ETF | 3.86% | 3.79% | 3.67% | 2.73% | 1.74% | 1.69% | 2.23% | 2.24% | 2.05% | 1.67% | 1.69% | 1.69% |
Frequently Asked Questions
With a correlation of 0.91, SHY and VGIT move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
VGIT has higher volatility (1.15%) compared to SHY (0.40%). In terms of maximum drawdown, SHY dropped -5.71% vs VGIT's -16.05%.
On 10-year performance, SHY leads with 1.65% vs 1.20% for VGIT. On fees, VGIT is cheaper at 0.03% 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.
Over the 10-year period, SHY has performed better with a 1.65% return vs 1.20%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VGIT is cheaper with a 0.03% expense ratio, compared with 0.15% for SHY.
VGIT has the higher dividend yield at 3.86%, compared with 3.68% for SHY.
SHY tracks ICE US Treasury 1-3 Year Index, while VGIT tracks Bloomberg U.S. Treasury 3-10 Year Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.15% for SHY and 0.03% for VGIT.
SHY currently has the higher Sharpe Ratio (2.43 vs 0.96), 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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