SHY vs. VGLT
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 1.68%/yr vs -1.63%/yr for VGLT. Their 0.60 correlation means they have sometimes moved together and sometimes differently. SHY charges 0.15%/yr vs 0.03%/yr for VGLT.
Performance
SHY vs. VGLT - Performance Comparison
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Returns By Period
In the year-to-date period, SHY achieves a 0.94% return, which is significantly higher than VGLT's -1.98% return. Over the past 10 years, SHY has outperformed VGLT with an annualized return of 1.68%, while VGLT has yielded a comparatively lower -1.63% annualized return.
SHY
- 1D
- 0.04%
- 1M
- 0.21%
- 6M
- 0.75%
- YTD
- 0.94%
- 1Y
- 2.73%
- 3Y*
- 4.16%
- 5Y*
- 1.83%
- 10Y*
- 1.68%
- ALL TIME*
- 1.96%
VGLT
- 1D
- 0.17%
- 1M
- -2.13%
- 6M
- -1.56%
- YTD
- -1.98%
- 1Y
- -0.89%
- 3Y*
- 0.27%
- 5Y*
- -6.65%
- 10Y*
- -1.63%
- ALL TIME*
- 2.34%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $322.37M | $279.93M | $281.77M | |
| $107.06M | $103.64M | $108.85M |
SHY vs. VGLT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SHY iShares 1-3 Year Treasury Bond ETF | 0.94% | 4.95% | 3.92% | 4.16% | -3.88% | -0.71% | 3.03% | 3.38% | 1.46% | 0.26% |
VGLT Vanguard Long-Term Treasury ETF | -1.98% | 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 0.65, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.65 |
Correlation (3Y) Balances recent behavior with more history. | 0.67 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.66 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.63 |
Correlation (All Time) Calculated using the full available price history since Nov 24, 2009 | 0.60 |
The correlation between SHY and VGLT has been stable across timeframes, ranging from 0.60 to 0.67 - a consistent structural relationship.
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Return for Risk
SHY vs. VGLT — Risk / Return Rank
SHY
VGLT
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.
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 | VGLT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.23 | ||
| Sortino ratioReturn per unit of downside risk | +3.25 | ||
| Omega ratioGain probability vs. loss probability | 1.40 | 0.99 | +0.41 |
| Calmar ratioReturn relative to maximum drawdown | 3.08 | -0.13 | +3.21 |
| Martin ratioReturn relative to average drawdown | 12.04 | -0.27 | +12.31 |
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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
| SHY | VGLT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.71% | -46.18% | +40.47% |
Max Drawdown (1Y)Largest decline over 1 year | -0.89% | -7.03% | +6.14% |
Max Drawdown (3Y)Largest decline over 3 years | -0.97% | -13.38% | +12.41% |
Max Drawdown (5Y)Largest decline over 5 years | -5.65% | -40.98% | +35.33% |
Max Drawdown (10Y)Largest decline over 10 years | -5.71% | -46.18% | +40.47% |
Current DrawdownCurrent decline from peak | 0.00% | -37.83% | +37.83% |
Average DrawdownAverage peak-to-trough decline | -0.52% | -15.28% | +14.76% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.23% | 3.26% | -3.03% |
Volatility
SHY vs. VGLT - Volatility Comparison
The current volatility for iShares 1-3 Year Treasury Bond ETF (SHY) is 0.34%, while Vanguard Long-Term Treasury ETF (VGLT) has a volatility of 2.32%. 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
| SHY | VGLT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.34% | 2.32% | -1.98% |
Volatility (6M)Calculated over the trailing 6-month period | 1.07% | 6.36% | -5.29% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.29% | 8.41% | -7.12% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.00% | 14.46% | -12.46% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.57% | 13.74% | -12.17% |
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 3.63%, less than VGLT's 4.74% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SHY iShares 1-3 Year Treasury Bond ETF | 3.63% | 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 | 4.74% | 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 0.65, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VGLT has higher volatility (2.32%) compared to SHY (0.34%). In terms of maximum drawdown, SHY dropped -5.71% vs VGLT's -46.18%.
On 10-year performance, SHY leads with 1.68% vs -1.63% for VGLT. On fees, VGLT is cheaper at 0.03% per year. On volatility, SHY has been the lower-risk option at 0.34%. 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 1.68% return vs -1.63%. 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 4.74%, compared with 3.63% 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 (2.12 vs -0.11), 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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