SHY vs. VTG
SHY (iShares 1-3 Year Treasury Bond ETF) and VTG (Vanguard Total Treasury ETF) are both Government Bonds funds - SHY tracks the ICE US Treasury 1-3 Year Index while VTG tracks the Bloomberg U.S. Treasury Total Return Unhedged USD Index. Both are passively managed. Over the past year, SHY returned 2.53% vs 1.06% for VTG. Their correlation of 0.82 means they have usually moved in the same direction. SHY charges 0.15%/yr vs 0.03%/yr for VTG.
Performance
SHY vs. VTG - Performance Comparison
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Returns By Period
In the year-to-date period, SHY achieves a 0.76% return, which is significantly higher than VTG's -0.78% return.
SHY
- 1D
- -0.01%
- 1M
- 0.07%
- 6M
- 0.55%
- YTD
- 0.76%
- 1Y
- 2.53%
- 3Y*
- 4.19%
- 5Y*
- 1.78%
- 10Y*
- 1.65%
- ALL TIME*
- 1.95%
VTG
- 1D
- -0.22%
- 1M
- -1.11%
- 6M
- -0.79%
- YTD
- -0.78%
- 1Y
- 1.06%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
- ALL TIME*
- 2.14%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $257.73M | $267.74M | $273.79M | |
| $2.81M | $3.14M | $2.90M |
SHY vs. VTG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | |
|---|---|---|
SHY iShares 1-3 Year Treasury Bond ETF | 0.76% | 2.41% |
VTG Vanguard Total Treasury ETF | -0.78% | 3.07% |
Correlation
The correlation between SHY and VTG is 0.81, meaning they have usually moved in the same direction, including during past declines.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.81 |
Correlation (All Time) Calculated using the full available price history since Jul 9, 2025 | 0.82 |
The correlation between SHY and VTG has been stable across timeframes, ranging from 0.81 to 0.82 - a consistent structural relationship.
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Return for Risk
SHY vs. VTG — Risk / Return Rank
SHY
VTG
SHY vs. VTG - 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 Total Treasury ETF (VTG). 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 | VTG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.65 | ||
| Sortino ratioReturn per unit of downside risk | +2.66 | ||
| Omega ratioGain probability vs. loss probability | 1.45 | 1.10 | +0.35 |
| Calmar ratioReturn relative to maximum drawdown | 3.43 | 0.68 | +2.75 |
| Martin ratioReturn relative to average drawdown | 13.40 | 1.62 | +11.78 |
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Drawdowns
SHY vs. VTG - Drawdown Comparison
The maximum SHY drawdown since its inception was -5.71%, which is greater than VTG's maximum drawdown of -2.89%. Use the drawdown chart below to compare losses from any high point for SHY and VTG.
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Drawdown Indicators
| SHY | VTG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.71% | -2.89% | -2.82% |
Max Drawdown (1Y)Largest decline over 1 year | -0.89% | -2.89% | +2.00% |
Max Drawdown (3Y)Largest decline over 3 years | -0.97% | — | — |
Max Drawdown (5Y)Largest decline over 5 years | -5.67% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -5.71% | — | — |
Current DrawdownCurrent decline from peak | -0.01% | -2.55% | +2.54% |
Average DrawdownAverage peak-to-trough decline | -0.52% | -0.90% | +0.38% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.23% | 1.22% | -0.99% |
Volatility
SHY vs. VTG - Volatility Comparison
The current volatility for iShares 1-3 Year Treasury Bond ETF (SHY) is 0.38%, while Vanguard Total Treasury ETF (VTG) has a volatility of 0.88%. This indicates that SHY experiences smaller price fluctuations and is considered to be less risky than VTG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SHY | VTG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.38% | 0.88% | -0.50% |
Volatility (6M)Calculated over the trailing 6-month period | 1.07% | 2.68% | -1.61% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.38% | 3.49% | -2.11% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.00% | 3.51% | -1.51% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.57% | 3.51% | -1.94% |
SHY vs. VTG - Expense Ratio Comparison
SHY has a 0.15% expense ratio, which is higher than VTG'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. VTG - Dividend Comparison
SHY's dividend yield for the trailing twelve months is around 3.65%, more than VTG's 3.57% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SHY iShares 1-3 Year Treasury Bond ETF | 3.32% | 3.81% | 3.92% | 2.99% | 1.30% | 0.26% | 0.94% | 2.12% | 1.72% | 0.98% | 0.71% | 0.54% |
VTG Vanguard Total Treasury ETF | 3.31% | 1.65% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
SHY and VTG have a correlation of 0.81, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VTG has higher volatility (0.88%) compared to SHY (0.38%). In terms of maximum drawdown, SHY dropped -5.71% vs VTG's -2.89%.
On 1-year performance, SHY leads with 2.53% vs 1.06% for VTG. On fees, VTG is cheaper at 0.03% per year. On volatility, SHY has been the lower-risk option at 0.38%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, SHY has performed better with a 2.53% return vs 1.06%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VTG is cheaper with a 0.03% expense ratio, compared with 0.15% for SHY.
SHY has the higher dividend yield at 3.32%, compared with 3.31% for VTG.
SHY tracks ICE US Treasury 1-3 Year Index, while VTG tracks Bloomberg U.S. Treasury Total Return Unhedged USD Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.15% for SHY and 0.03% for VTG.
SHY currently has the higher Sharpe Ratio (2.21 vs 0.57), 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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