SHY vs. VUSB
SHY (iShares 1-3 Year Treasury Bond ETF) and VUSB (Vanguard Ultra-Short Bond ETF) are both exchange-traded funds - SHY is a Government Bonds fund tracking the ICE US Treasury 1-3 Year Index, while VUSB is a Ultrashort Bond fund actively managed by Vanguard. SHY is passively managed, while VUSB is actively managed. Over the past 5 years, SHY returned 1.71%/yr vs 3.43%/yr for VUSB. A 0.73 correlation means they provide meaningful diversification when combined. SHY charges 0.15%/yr vs 0.10%/yr for VUSB.
Performance
SHY vs. VUSB - Performance Comparison
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Returns By Period
In the year-to-date period, SHY achieves a 0.43% return, which is significantly lower than VUSB's 1.39% return.
SHY
- 1D
- -0.05%
- 1M
- 0.08%
- YTD
- 0.43%
- 6M
- 0.69%
- 1Y
- 3.32%
- 3Y*
- 4.03%
- 5Y*
- 1.71%
- 10Y*
- 1.65%
VUSB
- 1D
- -0.02%
- 1M
- 0.40%
- YTD
- 1.39%
- 6M
- 1.76%
- 1Y
- 4.59%
- 3Y*
- 5.34%
- 5Y*
- 3.43%
- 10Y*
- —
SHY vs. VUSB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
SHY iShares 1-3 Year Treasury Bond ETF | 0.43% | 4.95% | 3.92% | 4.16% | -3.88% | -0.64% |
VUSB Vanguard Ultra-Short Bond ETF | 1.39% | 5.20% | 5.68% | 5.52% | -0.36% | 0.00% |
Correlation
The correlation between SHY and VUSB is 0.72, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.72 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.79 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.74 |
Correlation (All Time) Calculated using the full available price history since Apr 8, 2021 | 0.73 |
The correlation between SHY and VUSB has been stable across timeframes, ranging from 0.72 to 0.79 - a consistent structural relationship.
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Return for Risk
SHY vs. VUSB — Risk / Return Rank
SHY
VUSB
SHY vs. VUSB - 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 Ultra-Short Bond ETF (VUSB). 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.
| SHY | VUSB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -4.61 | ||
| Sortino ratioReturn per unit of downside risk | -9.06 | ||
| Omega ratioGain probability vs. loss probability | 1.51 | 3.44 | -1.93 |
| Calmar ratioReturn relative to maximum drawdown | 3.75 | 12.43 | -8.68 |
| Martin ratioReturn relative to average drawdown | 15.21 | 71.97 | -56.76 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| SHY | VUSB | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.49 | 7.10 | -4.61 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.87 | 4.14 | -3.27 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 1.06 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.28 | 4.09 | -2.81 |
Drawdowns
SHY vs. VUSB - Drawdown Comparison
The maximum SHY drawdown since its inception was -5.71%, which is greater than VUSB's maximum drawdown of -1.79%. Use the drawdown chart below to compare losses from any high point for SHY and VUSB.
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Drawdown Indicators
| SHY | VUSB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.71% | -1.79% | -3.92% |
Max Drawdown (1Y)Largest decline over 1 year | -0.89% | -0.37% | -0.52% |
Max Drawdown (3Y)Largest decline over 3 years | -0.97% | -0.46% | -0.51% |
Max Drawdown (5Y)Largest decline over 5 years | -5.71% | -1.79% | -3.92% |
Max Drawdown (10Y)Largest decline over 10 years | -5.71% | — | — |
Current DrawdownCurrent decline from peak | -0.31% | -0.02% | -0.29% |
Average DrawdownAverage peak-to-trough decline | -0.52% | -0.27% | -0.25% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.22% | 0.06% | +0.16% |
Volatility
SHY vs. VUSB - Volatility Comparison
iShares 1-3 Year Treasury Bond ETF (SHY) has a higher volatility of 0.35% compared to Vanguard Ultra-Short Bond ETF (VUSB) at 0.18%. This indicates that SHY's price experiences larger fluctuations and is considered to be riskier than VUSB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SHY | VUSB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.35% | 0.18% | +0.17% |
Volatility (6M)Calculated over the trailing 6-month period | 0.92% | 0.52% | +0.40% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.34% | 0.65% | +0.69% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.98% | 0.83% | +1.15% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.57% | 0.82% | +0.75% |
SHY vs. VUSB - Expense Ratio Comparison
SHY has a 0.15% expense ratio, which is higher than VUSB's 0.10% 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. VUSB - Dividend Comparison
SHY's dividend yield for the trailing twelve months is around 3.68%, less than VUSB's 4.39% 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% |
VUSB Vanguard Ultra-Short Bond ETF | 4.39% | 4.63% | 5.16% | 4.45% | 1.56% | 0.26% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
SHY and VUSB have a correlation of 0.72, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SHY has higher volatility (0.35%) compared to VUSB (0.18%). In terms of maximum drawdown, SHY dropped -5.71% vs VUSB's -1.79%.
On 5-year performance, VUSB leads with 3.43% vs 1.71% for SHY. On fees, VUSB is cheaper at 0.10% per year. On volatility, VUSB has been the lower-risk option at 0.18%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, VUSB has performed better with a 3.43% return vs 1.71%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VUSB is cheaper with a 0.10% expense ratio, compared with 0.15% for SHY.
VUSB has the higher dividend yield at 4.39%, compared with 3.68% for SHY.
SHY is categorized as Government Bonds, while VUSB is Ultrashort Bond. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.15% for SHY and 0.10% for VUSB.
VUSB currently has the higher Sharpe Ratio (7.10 vs 2.49), 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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