SHY vs. VGSH
Compare and contrast key facts about iShares 1-3 Year Treasury Bond ETF (SHY) and Vanguard Short-Term Treasury ETF (VGSH).
SHY and VGSH are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. SHY is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. 1-3 Year Treasury Bond Index. It was launched on Jul 22, 2002. VGSH is a passively managed fund by Vanguard that tracks the performance of the Barclays U.S. 1-3 Year Government Float Adjusted Index. It was launched on Nov 19, 2009. Both SHY and VGSH are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: SHY or VGSH.
Key characteristics
| SHY | VGSH | |
|---|---|---|
| YTD Return | -0.09% | -0.08% |
| 1Y Return | 2.28% | 2.39% |
| 3Y Return (Ann) | -0.20% | -0.12% |
| 5Y Return (Ann) | 0.91% | 1.00% |
| 10Y Return (Ann) | 0.89% | 0.96% |
| Sharpe Ratio | 1.00 | 1.07 |
| Daily Std Dev | 2.07% | 2.05% |
| Max Drawdown | -5.71% | -5.70% |
| Current Drawdown | -0.74% | -0.57% |
Correlation
The correlation between SHY and VGSH is 0.78, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
SHY vs. VGSH - Performance Comparison
In the year-to-date period, SHY achieves a -0.09% return, which is significantly lower than VGSH's -0.08% return. Over the past 10 years, SHY has underperformed VGSH with an annualized return of 0.89%, while VGSH has yielded a comparatively higher 0.96% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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SHY vs. VGSH - Expense Ratio Comparison
SHY has a 0.15% expense ratio, which is higher than VGSH's 0.04% 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%.
Risk-Adjusted Performance
SHY vs. VGSH - Risk-Adjusted Performance 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.
Dividends
SHY vs. VGSH - Dividend Comparison
SHY's dividend yield for the trailing twelve months is around 3.34%, less than VGSH's 3.70% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SHY iShares 1-3 Year Treasury Bond ETF | 3.34% | 2.99% | 1.30% | 0.26% | 0.94% | 2.12% | 1.72% | 0.98% | 0.71% | 0.54% | 0.36% | 0.26% |
VGSH Vanguard Short-Term Treasury ETF | 3.70% | 3.31% | 1.15% | 0.66% | 1.74% | 2.28% | 1.79% | 1.10% | 0.82% | 0.71% | 0.46% | 0.34% |
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. For additional features, visit the drawdowns tool.
Volatility
SHY vs. VGSH - Volatility Comparison
iShares 1-3 Year Treasury Bond ETF (SHY) and Vanguard Short-Term Treasury ETF (VGSH) have volatilities of 0.58% and 0.57%, 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.