SHY vs. XLE
SHY (iShares 1-3 Year Treasury Bond ETF) and XLE (State Street Energy Select Sector SPDR ETF) are both exchange-traded funds - SHY is a Government Bonds fund tracking the ICE US Treasury 1-3 Year Index, while XLE is a Energy Equities fund tracking the Energy Select Sector Index. Both are passively managed. Over the past 10 years, SHY returned 1.65%/yr vs 9.91%/yr for XLE. At a correlation of -0.18, they often move in opposite directions. SHY charges 0.15%/yr vs 0.08%/yr for XLE.
Performance
SHY vs. XLE - Performance Comparison
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Returns By Period
In the year-to-date period, SHY achieves a 0.55% return, which is significantly lower than XLE's 29.56% return. Over the past 10 years, SHY has underperformed XLE with an annualized return of 1.65%, while XLE has yielded a comparatively higher 9.91% annualized return.
SHY
- 1D
- -0.02%
- 1M
- 0.19%
- YTD
- 0.55%
- 6M
- 0.80%
- 1Y
- 3.29%
- 3Y*
- 4.15%
- 5Y*
- 1.74%
- 10Y*
- 1.65%
XLE
- 1D
- 0.75%
- 1M
- -0.90%
- YTD
- 29.56%
- 6M
- 28.37%
- 1Y
- 34.84%
- 3Y*
- 16.18%
- 5Y*
- 20.12%
- 10Y*
- 9.91%
SHY vs. XLE - 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% |
XLE State Street Energy Select Sector SPDR ETF | 29.56% | 7.88% | 5.56% | -0.63% | 64.32% | 53.28% | -32.67% | 11.74% | -18.22% | -0.89% |
Correlation
The correlation between SHY and XLE is -0.20, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | -0.20 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.10 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.09 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.15 |
Correlation (All Time) Calculated using the full available price history since Jul 26, 2002 | -0.18 |
The correlation between SHY and XLE shifts across timeframes, from -0.20 (1 year) to -0.09 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
SHY vs. XLE — Risk / Return Rank
SHY
XLE
SHY vs. XLE - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 1-3 Year Treasury Bond ETF (SHY) and State Street Energy Select Sector SPDR ETF (XLE). 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 | XLE | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.61 | ||
| Sortino ratioReturn per unit of downside risk | +1.57 | ||
| Omega ratioGain probability vs. loss probability | 1.50 | 1.30 | +0.20 |
| Calmar ratioReturn relative to maximum drawdown | 3.64 | 3.10 | +0.54 |
| Martin ratioReturn relative to average drawdown | 14.45 | 8.63 | +5.81 |
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Drawdowns
SHY vs. XLE - Drawdown Comparison
The maximum SHY drawdown since its inception was -5.71%, smaller than the maximum XLE drawdown of -71.26%. Use the drawdown chart below to compare losses from any high point for SHY and XLE.
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Drawdown Indicators
| SHY | XLE | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.71% | -71.26% | +65.55% |
Max Drawdown (1Y)Largest decline over 1 year | -0.89% | -12.05% | +11.16% |
Max Drawdown (3Y)Largest decline over 3 years | -0.97% | -20.14% | +19.17% |
Max Drawdown (5Y)Largest decline over 5 years | -5.71% | -26.04% | +20.33% |
Max Drawdown (10Y)Largest decline over 10 years | -5.71% | -66.81% | +61.10% |
Current DrawdownCurrent decline from peak | -0.18% | -8.01% | +7.83% |
Average DrawdownAverage peak-to-trough decline | -0.52% | -17.97% | +17.45% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.22% | 4.32% | -4.10% |
Volatility
SHY vs. XLE - Volatility Comparison
The current volatility for iShares 1-3 Year Treasury Bond ETF (SHY) is 0.40%, while State Street Energy Select Sector SPDR ETF (XLE) has a volatility of 7.26%. This indicates that SHY experiences smaller price fluctuations and is considered to be less risky than XLE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SHY | XLE | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.40% | 7.26% | -6.86% |
Volatility (6M)Calculated over the trailing 6-month period | 0.95% | 16.79% | -15.84% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.33% | 20.57% | -19.24% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.99% | 26.05% | -24.06% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.57% | 29.58% | -28.01% |
SHY vs. XLE - Expense Ratio Comparison
SHY has a 0.15% expense ratio, which is higher than XLE's 0.08% 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. XLE - Dividend Comparison
SHY's dividend yield for the trailing twelve months is around 3.68%, more than XLE's 2.59% 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% |
XLE State Street Energy Select Sector SPDR ETF | 2.59% | 3.28% | 3.36% | 3.55% | 3.68% | 4.21% | 5.62% | 6.72% | 3.54% | 3.03% | 2.26% | 3.39% |
Frequently Asked Questions
SHY and XLE have a correlation of -0.20, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XLE has higher volatility (7.26%) compared to SHY (0.40%). In terms of maximum drawdown, SHY dropped -5.71% vs XLE's -71.26%.
On 10-year performance, XLE leads with 9.91% vs 1.65% for SHY. On fees, XLE is cheaper at 0.08% per year. On volatility, SHY has been the lower-risk option at 0.40%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, XLE has performed better with a 9.91% return vs 1.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XLE is cheaper with a 0.08% expense ratio, compared with 0.15% for SHY.
SHY has the higher dividend yield at 3.68%, compared with 2.59% for XLE.
SHY is categorized as Government Bonds, while XLE is Energy Equities. SHY tracks ICE US Treasury 1-3 Year Index, while XLE tracks Energy Select Sector Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.15% for SHY and 0.08% for XLE.
SHY currently has the higher Sharpe Ratio (2.43 vs 1.82), 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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