SHY vs. VTI
SHY (iShares 1-3 Year Treasury Bond ETF) and VTI (Vanguard Total Stock Market ETF) are both exchange-traded funds - SHY is a Government Bonds fund tracking the ICE US Treasury 1-3 Year Index, while VTI is a Large Cap Blend Equities fund tracking the CRSP US Total Market Index. Both are passively managed. Over the past 10 years, SHY returned 1.65%/yr vs 14.63%/yr for VTI. Their -0.19 correlation means they have often moved in opposite directions in the past. SHY charges 0.15%/yr vs 0.03%/yr for VTI.
Performance
SHY vs. VTI - Performance Comparison
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Returns By Period
In the year-to-date period, SHY achieves a 0.76% return, which is significantly lower than VTI's 10.49% return. Over the past 10 years, SHY has underperformed VTI with an annualized return of 1.65%, while VTI has yielded a comparatively higher 14.63% annualized 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%
VTI
- 1D
- 0.53%
- 1M
- -0.15%
- 6M
- 8.77%
- YTD
- 10.49%
- 1Y
- 21.84%
- 3Y*
- 18.92%
- 5Y*
- 11.74%
- 10Y*
- 14.63%
- ALL TIME*
- 9.58%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $257.73M | $267.74M | $273.79M | |
| $1.06B | $1.16B | $1.24B |
SHY vs. VTI - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SHY iShares 1-3 Year Treasury Bond ETF | 0.76% | 4.95% | 3.92% | 4.16% | -3.88% | -0.71% | 3.03% | 3.38% | 1.46% | 0.26% |
VTI Vanguard Total Stock Market ETF | 10.49% | 17.10% | 23.81% | 26.05% | -19.52% | 25.68% | 21.08% | 30.67% | -5.23% | 21.21% |
Correlation
The correlation between SHY and VTI is 0.25, which is low. Their historical price movements had little consistent relationship.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.25 |
Correlation (3Y) Balances recent behavior with more history. | 0.15 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.13 |
Correlation (10Y) Provides a long-term view across more market conditions. | -0.02 |
Correlation (All Time) Calculated using the full available price history since Jul 26, 2002 | -0.19 |
The correlation between SHY and VTI shifts across timeframes, from -0.19 (all time) to 0.25 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
SHY vs. VTI — Risk / Return Rank
SHY
VTI
SHY vs. VTI - 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 Stock Market ETF (VTI). 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 | VTI | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.69 | ||
| Sortino ratioReturn per unit of downside risk | +1.40 | ||
| Omega ratioGain probability vs. loss probability | 1.45 | 1.27 | +0.18 |
| Calmar ratioReturn relative to maximum drawdown | 3.43 | 2.23 | +1.20 |
| Martin ratioReturn relative to average drawdown | 13.40 | 9.62 | +3.78 |
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Drawdowns
SHY vs. VTI - Drawdown Comparison
The maximum SHY drawdown since its inception was -5.71%, smaller than the maximum VTI drawdown of -55.45%. Use the drawdown chart below to compare losses from any high point for SHY and VTI.
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Drawdown Indicators
| SHY | VTI | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.71% | -55.45% | +49.74% |
Max Drawdown (1Y)Largest decline over 1 year | -0.89% | -8.92% | +8.03% |
Max Drawdown (3Y)Largest decline over 3 years | -0.97% | -19.30% | +18.33% |
Max Drawdown (5Y)Largest decline over 5 years | -5.67% | -25.36% | +19.69% |
Max Drawdown (10Y)Largest decline over 10 years | -5.71% | -35.00% | +29.29% |
Current DrawdownCurrent decline from peak | -0.01% | -1.36% | +1.35% |
Average DrawdownAverage peak-to-trough decline | -0.52% | -7.99% | +7.47% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.23% | 2.07% | -1.84% |
Volatility
SHY vs. VTI - Volatility Comparison
The current volatility for iShares 1-3 Year Treasury Bond ETF (SHY) is 0.38%, while Vanguard Total Stock Market ETF (VTI) has a volatility of 3.46%. This indicates that SHY experiences smaller price fluctuations and is considered to be less risky than VTI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SHY | VTI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.38% | 3.46% | -3.08% |
Volatility (6M)Calculated over the trailing 6-month period | 1.07% | 10.24% | -9.17% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.38% | 13.10% | -11.72% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.00% | 17.51% | -15.51% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.57% | 18.30% | -16.73% |
SHY vs. VTI - Expense Ratio Comparison
SHY has a 0.15% expense ratio, which is higher than VTI'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. VTI - Dividend Comparison
SHY's dividend yield for the trailing twelve months is around 3.65%, more than VTI's 1.06% 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% |
VTI Vanguard Total Stock Market ETF | 1.06% | 1.12% | 1.27% | 1.44% | 1.66% | 1.21% | 1.42% | 1.78% | 2.04% | 1.71% | 1.92% | 1.98% |
Frequently Asked Questions
SHY and VTI have a correlation of 0.25, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VTI has higher volatility (3.46%) compared to SHY (0.38%). In terms of maximum drawdown, SHY dropped -5.71% vs VTI's -55.45%.
On 10-year performance, VTI leads with 14.63% vs 1.65% for SHY. On fees, VTI 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 10-year period, VTI has performed better with a 14.63% return vs 1.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VTI 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 1.06% for VTI.
SHY is categorized as Government Bonds, while VTI is Large Cap Blend Equities. SHY tracks ICE US Treasury 1-3 Year Index, while VTI tracks CRSP US Total Market Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.15% for SHY and 0.03% for VTI.
SHY currently has the higher Sharpe Ratio (2.21 vs 1.52), 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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