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SHY vs. VGLT
Performance
Return for Risk
Drawdowns
Volatility
Dividends

SHY vs. VGLT

Last updated Jun 4, 2026

SHY (iShares 1-3 Year Treasury Bond ETF) and VGLT (Vanguard Long-Term Treasury ETF) are both Government Bonds funds - SHY tracks the ICE US Treasury 1-3 Year Index while VGLT tracks the Bloomberg U.S. Long Treasury Index. Both are passively managed. Over the past 10 years, SHY returned 1.65%/yr vs -1.10%/yr for VGLT. A 0.60 correlation means they provide meaningful diversification when combined. SHY charges 0.15%/yr vs 0.03%/yr for VGLT.

Performance

SHY vs. VGLT - 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 Long-Term Treasury ETF (VGLT). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, SHY achieves a 0.43% return, which is significantly higher than VGLT's -0.41% return. Over the past 10 years, SHY has outperformed VGLT with an annualized return of 1.65%, while VGLT has yielded a comparatively lower -1.10% 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%

VGLT

1D
-0.40%
1M
0.71%
YTD
-0.41%
6M
-1.68%
1Y
5.25%
3Y*
-0.72%
5Y*
-5.30%
10Y*
-1.10%
*Multi-year figures are annualized to reflect compound growth (CAGR)

SHY vs. VGLT - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
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%
VGLT
Vanguard Long-Term Treasury ETF		-0.41%5.35%-6.28%3.27%-29.34%-4.98%17.57%14.30%-1.54%8.64%

Correlation

The correlation between SHY and VGLT is 0.67, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

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

0.67

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

0.68

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

0.65

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

0.63

Correlation (All Time)
Calculated using the full available price history since Nov 25, 2009

0.60

The correlation between SHY and VGLT has been stable across timeframes, ranging from 0.60 to 0.68 - a consistent structural relationship.

Compare stocks, funds, or ETFs

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iShares 1-3 Year Treasury Bond ETF

Vanguard Long-Term Treasury ETF

Often compared with SHY:
SHY vs. SGOVSHY vs. VGSHSHY vs. SHVSHY vs. TLTSHY vs. IEFSHY vs. BILSHY vs. BSV
Often compared with VGLT:
VGLT vs. TLTVGLT vs. VGITVGLT vs. EDVVGLT vs. BNDVGLT vs. VCLTVGLT vs. BLVVGLT vs. SPTL

Return for Risk

SHY vs. VGLT — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
SHY
SHY Risk / Return Rank: 7979
Overall Rank
SHY Sharpe Ratio Rank: 7474
Sharpe Ratio Rank
SHY Sortino Ratio Rank: 8888
Sortino Ratio Rank
SHY Omega Ratio Rank: 8282
Omega Ratio Rank
SHY Calmar Ratio Rank: 7373
Calmar Ratio Rank
SHY Martin Ratio Rank: 7777
Martin Ratio Rank
VGLT
VGLT Risk / Return Rank: 1818
Overall Rank
VGLT Sharpe Ratio Rank: 1818
Sharpe Ratio Rank
VGLT Sortino Ratio Rank: 1717
Sortino Ratio Rank
VGLT Omega Ratio Rank: 1616
Omega Ratio Rank
VGLT Calmar Ratio Rank: 1818
Calmar Ratio Rank
VGLT Martin Ratio Rank: 1818
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. VGLT - 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 Long-Term Treasury ETF (VGLT). 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.

SHYVGLTDifference

Sharpe ratio

Return per unit of total volatility

2.49

0.59

+1.89

Sortino ratio

Return per unit of downside risk

4.10

0.92

+3.19

Omega ratio

Gain probability vs. loss probability

1.51

1.10

+0.40

Calmar ratio

Return relative to maximum drawdown

3.75

0.75

+3.00

Martin ratio

Return relative to average drawdown

15.21

1.96

+13.24

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. VGLT - Sharpe Ratio Comparison

The current SHY Sharpe Ratio is 2.49, which is higher than the VGLT Sharpe Ratio of 0.59. The chart below compares the historical Sharpe Ratios of SHY and VGLT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

SHYVGLTDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.49

0.59

+1.89

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.87

-0.37

+1.23

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

1.06

-0.08

+1.14

Sharpe Ratio (All Time)

Calculated using the full available price history

1.28

0.19

+1.10

Drawdowns

SHY vs. VGLT - Drawdown Comparison

The maximum SHY drawdown since its inception was -5.71%, smaller than the maximum VGLT drawdown of -46.18%. Use the drawdown chart below to compare losses from any high point for SHY and VGLT.

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Drawdown Indicators

SHYVGLTDifference

Max Drawdown

Largest peak-to-trough decline

-5.71%

-46.18%

+40.47%

Max Drawdown (1Y)

Largest decline over 1 year

-0.89%

-7.01%

+6.12%

Max Drawdown (3Y)

Largest decline over 3 years

-0.97%

-17.68%

+16.71%

Max Drawdown (5Y)

Largest decline over 5 years

-5.71%

-40.98%

+35.27%

Max Drawdown (10Y)

Largest decline over 10 years

-5.71%

-46.18%

+40.47%

Current Drawdown

Current decline from peak

-0.31%

-36.83%

+36.52%

Average Drawdown

Average peak-to-trough decline

-0.52%

-15.06%

+14.54%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.22%

2.68%

-2.46%

Volatility

SHY vs. VGLT - Volatility Comparison

The current volatility for iShares 1-3 Year Treasury Bond ETF (SHY) is 0.35%, while Vanguard Long-Term Treasury ETF (VGLT) has a volatility of 2.59%. This indicates that SHY experiences smaller price fluctuations and is considered to be less risky than VGLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

SHYVGLTDifference

Volatility (1M)

Calculated over the trailing 1-month period

0.35%

2.59%

-2.24%

Volatility (6M)

Calculated over the trailing 6-month period

0.92%

5.94%

-5.02%

Volatility (1Y)

Calculated over the trailing 1-year period

1.34%

8.88%

-7.54%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

1.98%

14.58%

-12.60%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

1.57%

13.81%

-12.24%

SHY vs. VGLT - Expense Ratio Comparison

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

SHY's dividend yield for the trailing twelve months is around 3.68%, less than VGLT's 4.61% yield.

PositionTTM20252024202320222021202020192018201720162015
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%
VGLT
Vanguard Long-Term Treasury ETF		4.61%4.44%4.33%3.33%2.84%1.82%2.15%2.46%2.71%2.55%2.69%3.21%

Frequently Asked Questions

SHY and VGLT have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VGLT has higher volatility (2.59%) compared to SHY (0.35%). In terms of maximum drawdown, SHY dropped -5.71% vs VGLT's -46.18%.

On 10-year performance, SHY leads with 1.65% vs -1.10% for VGLT. On fees, VGLT is cheaper at 0.03% per year. On volatility, SHY has been the lower-risk option at 0.35%. 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 -1.10%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VGLT is cheaper with a 0.03% expense ratio, compared with 0.15% for SHY.

VGLT has the higher dividend yield at 4.61%, compared with 3.68% for SHY.

SHY tracks ICE US Treasury 1-3 Year Index, while VGLT tracks Bloomberg U.S. Long Treasury Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.15% for SHY and 0.03% for VGLT.

SHY currently has the higher Sharpe Ratio (2.49 vs 0.59), 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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