SHY vs. VGSH
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 1.63%/yr vs 1.71%/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
Loading charts...
Returns By Period
In the year-to-date period, SHY achieves a 0.55% return, which is significantly lower than VGSH's 0.60% return. Both investments have delivered pretty close results over the past 10 years, with SHY having a 1.63% annualized return and VGSH not far ahead at 1.71%.
SHY
- 1D
- 0.12%
- 1M
- 0.24%
- YTD
- 0.55%
- 6M
- 0.66%
- 1Y
- 2.91%
- 3Y*
- 4.14%
- 5Y*
- 1.78%
- 10Y*
- 1.63%
VGSH
- 1D
- 0.14%
- 1M
- 0.25%
- YTD
- 0.60%
- 6M
- 0.72%
- 1Y
- 3.03%
- 3Y*
- 4.25%
- 5Y*
- 1.88%
- 10Y*
- 1.71%
SHY vs. VGSH - 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% |
VGSH Vanguard Short-Term Treasury ETF | 0.60% | 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 23, 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.
Return for Risk
SHY vs. VGSH — Risk / Return Rank
SHY
VGSH
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.
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 | VGSH | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.18 | ||
| Sortino ratioReturn per unit of downside risk | -0.31 | ||
| Omega ratioGain probability vs. loss probability | 1.43 | 1.48 | -0.05 |
| Calmar ratioReturn relative to maximum drawdown | 3.29 | 3.44 | -0.15 |
| Martin ratioReturn relative to average drawdown | 12.80 | 13.16 | -0.37 |
Loading charts...
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.
Loading charts...
Drawdown Indicators
| SHY | VGSH | Difference | |
|---|---|---|---|
Max DrawdownLargest 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 DrawdownCurrent decline from peak | -0.18% | -0.17% | -0.01% |
Average DrawdownAverage peak-to-trough decline | -0.52% | -0.60% | +0.08% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.23% | 0.23% | 0.00% |
Volatility
SHY vs. VGSH - Volatility Comparison
iShares 1-3 Year Treasury Bond ETF (SHY) has a higher volatility of 0.51% compared to Vanguard Short-Term Treasury ETF (VGSH) at 0.47%. This indicates that SHY's price experiences larger fluctuations and is considered to be riskier than VGSH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| SHY | VGSH | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.51% | 0.47% | +0.04% |
Volatility (6M)Calculated over the trailing 6-month period | 1.01% | 0.96% | +0.05% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.37% | 1.32% | +0.05% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.99% | 1.98% | +0.01% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.57% | 1.58% | -0.01% |
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.
| 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% |
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 (0.51%) compared to VGSH (0.47%). In terms of maximum drawdown, SHY dropped -5.71% vs VGSH's -5.70%.
On 10-year performance, VGSH leads with 1.71% vs 1.63% 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 1.71% return vs 1.63%. 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 (2.32 vs 2.13), 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.
Find the right allocation for SHY and VGSH
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer