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SHY vs. VGSH
Performance
Return for Risk
Drawdowns
Volatility
Dividends

SHY vs. VGSH

Last updated Jun 3, 2026

SHY (iShares 1-3 Year Treasury Bond ETF) and VGSH (Vanguard Short-Term Treasury ETF) are both Government Bonds funds - SHY tracks the ICE US Treasury 1-3 Year Index while VGSH tracks the Bloomberg U.S. Treasury 1-3 Year Index. Both are passively managed. Over the past 10 years, SHY returned 1.65%/yr vs 1.74%/yr for VGSH. Their correlation of 0.82 suggests significant overlap in exposure. SHY charges 0.15%/yr vs 0.03%/yr for VGSH.

Performance

SHY vs. VGSH - 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 Short-Term Treasury ETF (VGSH). 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 0.48% return, which is significantly lower than VGSH's 0.52% return. Over the past 10 years, SHY has underperformed VGSH with an annualized return of 1.65%, while VGSH has yielded a comparatively higher 1.74% annualized return.

SHY

1D
0.00%
1M
0.00%
YTD
0.48%
6M
0.80%
1Y
3.34%
3Y*
4.04%
5Y*
1.73%
10Y*
1.65%

VGSH

1D
0.00%
1M
0.01%
YTD
0.52%
6M
0.86%
1Y
3.45%
3Y*
4.16%
5Y*
1.83%
10Y*
1.74%
*Multi-year figures are annualized to reflect compound growth (CAGR)

SHY vs. VGSH - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
SHY
iShares 1-3 Year Treasury Bond ETF		0.48%4.95%3.92%4.16%-3.88%-0.71%3.03%3.38%1.46%0.26%
VGSH
Vanguard Short-Term Treasury ETF		0.52%5.07%4.00%4.31%-3.86%-0.60%3.04%3.52%1.55%0.04%

Correlation

The correlation between SHY and VGSH is 0.95, 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

0.95

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

0.96

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

0.97

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

0.91

Correlation (All Time)
Calculated using the full available price history since Nov 24, 2009

0.82

The correlation between SHY and VGSH shifts across timeframes, from 0.82 (all time) to 0.97 (5 years), 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 Short-Term Treasury ETF

Often compared with SHY:
SHY vs. SGOVSHY vs. SHVSHY vs. TLTSHY vs. IEFSHY vs. BILSHY vs. BSVSHY vs. SPY
Often compared with VGSH:
VGSH vs. sgovVGSH vs. SHVVGSH vs. SGOVVGSH vs. BNDVGSH vs. VTIPVGSH vs. VCSHVGSH vs. VUSXX

Return for Risk

SHY vs. VGSH — 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: 7676
Sharpe Ratio Rank
SHY Sortino Ratio Rank: 8989
Sortino Ratio Rank
SHY Omega Ratio Rank: 8484
Omega Ratio Rank
SHY Calmar Ratio Rank: 7272
Calmar Ratio Rank
SHY Martin Ratio Rank: 7676
Martin Ratio Rank
VGSH
VGSH Risk / Return Rank: 8383
Overall Rank
VGSH Sharpe Ratio Rank: 8282
Sharpe Ratio Rank
VGSH Sortino Ratio Rank: 9292
Sortino Ratio Rank
VGSH Omega Ratio Rank: 8989
Omega Ratio Rank
VGSH Calmar Ratio Rank: 7575
Calmar Ratio Rank
VGSH Martin Ratio Rank: 7878
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. VGSH - 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 Treasury ETF (VGSH). 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.

SHYVGSHDifference

Sharpe ratio

Return per unit of total volatility

2.51

2.69

-0.18

Sortino ratio

Return per unit of downside risk

4.14

4.45

-0.31

Omega ratio

Gain probability vs. loss probability

1.51

1.57

-0.06

Calmar ratio

Return relative to maximum drawdown

3.67

3.81

-0.15

Martin ratio

Return relative to average drawdown

14.96

15.25

-0.30

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. VGSH - Sharpe Ratio Comparison

The current SHY Sharpe Ratio is 2.51, which is comparable to the VGSH Sharpe Ratio of 2.69. The chart below compares the historical Sharpe Ratios of SHY and VGSH, 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

SHYVGSHDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.51

2.69

-0.18

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.88

0.93

-0.06

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

1.06

1.11

-0.05

Sharpe Ratio (All Time)

Calculated using the full available price history

1.29

1.02

+0.27

Drawdowns

SHY vs. VGSH - Drawdown Comparison

The maximum SHY drawdown since its inception was -5.71%, roughly equal to the maximum VGSH drawdown of -5.70%. Use the drawdown chart below to compare losses from any high point for SHY and VGSH.

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Drawdown Indicators

SHYVGSHDifference

Max Drawdown

Largest peak-to-trough decline

-5.71%

-5.70%

-0.01%

Max Drawdown (1Y)

Largest decline over 1 year

-0.89%

-0.88%

-0.01%

Max Drawdown (3Y)

Largest decline over 3 years

-0.97%

-0.97%

0.00%

Max Drawdown (5Y)

Largest decline over 5 years

-5.71%

-5.66%

-0.05%

Max Drawdown (10Y)

Largest decline over 10 years

-5.71%

-5.70%

-0.01%

Current Drawdown

Current decline from peak

-0.26%

-0.26%

0.00%

Average Drawdown

Average peak-to-trough decline

-0.52%

-0.60%

+0.08%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.22%

0.22%

0.00%

Volatility

SHY vs. VGSH - Volatility Comparison

iShares 1-3 Year Treasury Bond ETF (SHY) and Vanguard Short-Term Treasury ETF (VGSH) have volatilities of 0.37% and 0.36%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

SHYVGSHDifference

Volatility (1M)

Calculated over the trailing 1-month period

0.37%

0.36%

+0.01%

Volatility (6M)

Calculated over the trailing 6-month period

0.93%

0.88%

+0.05%

Volatility (1Y)

Calculated over the trailing 1-year period

1.34%

1.29%

+0.05%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

1.98%

1.97%

+0.01%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

1.57%

1.57%

0.00%

SHY vs. VGSH - Expense Ratio Comparison

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

SHY's dividend yield for the trailing twelve months is around 3.68%, less than VGSH's 3.87% 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%
VGSH
Vanguard Short-Term Treasury ETF		3.87%4.00%4.18%3.31%1.15%0.66%1.74%2.28%1.79%1.10%0.84%0.69%

Frequently Asked Questions

With a correlation of 0.95, SHY and VGSH 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.

SHY has higher volatility (0.37%) compared to VGSH (0.36%). In terms of maximum drawdown, SHY dropped -5.71% vs VGSH's -5.70%.

On 10-year performance, VGSH leads with 1.74% vs 1.65% for SHY. On fees, VGSH is cheaper at 0.03% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, VGSH has performed better with a 1.74% return vs 1.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

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

VGSH has the higher dividend yield at 3.87%, compared with 3.68% for SHY.

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

VGSH currently has the higher Sharpe Ratio (2.69 vs 2.51), 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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