SHY vs. XYLD
SHY (iShares 1-3 Year Treasury Bond ETF) and XYLD (Global X S&P 500 Covered Call ETF) are both exchange-traded funds - SHY is a Government Bonds fund tracking the ICE US Treasury 1-3 Year Index, while XYLD is a Derivative Income fund tracking the Cboe S&P 500 BuyWrite Index. Both are passively managed. Over the past 10 years, SHY returned 1.63%/yr vs 8.23%/yr for XYLD. At a correlation of -0.10, they often move in opposite directions. SHY charges 0.15%/yr vs 0.60%/yr for XYLD.
Performance
SHY vs. XYLD - Performance Comparison
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Returns By Period
In the year-to-date period, SHY achieves a 0.34% return, which is significantly lower than XYLD's 4.47% return. Over the past 10 years, SHY has underperformed XYLD with an annualized return of 1.63%, while XYLD has yielded a comparatively higher 8.23% annualized return.
SHY
- 1D
- 0.05%
- 1M
- -0.19%
- YTD
- 0.34%
- 6M
- 0.74%
- 1Y
- 3.33%
- 3Y*
- 4.04%
- 5Y*
- 1.70%
- 10Y*
- 1.63%
XYLD
- 1D
- 0.27%
- 1M
- 0.88%
- YTD
- 4.47%
- 6M
- 5.83%
- 1Y
- 16.60%
- 3Y*
- 10.96%
- 5Y*
- 7.62%
- 10Y*
- 8.23%
SHY vs. XYLD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SHY iShares 1-3 Year Treasury Bond ETF | 0.34% | 4.95% | 3.92% | 4.16% | -3.88% | -0.71% | 3.03% | 3.38% | 1.46% | 0.26% |
XYLD Global X S&P 500 Covered Call ETF | 4.47% | 8.02% | 19.49% | 11.10% | -12.05% | 19.59% | -0.56% | 21.41% | -6.09% | 16.49% |
Correlation
The correlation between SHY and XYLD is 0.19, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.19 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.06 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.07 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.07 |
Correlation (All Time) Calculated using the full available price history since Jun 24, 2013 | -0.10 |
The correlation between SHY and XYLD shifts across timeframes, from -0.10 (all time) to 0.19 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
SHY vs. XYLD — Risk / Return Rank
SHY
XYLD
SHY vs. XYLD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 1-3 Year Treasury Bond ETF (SHY) and Global X S&P 500 Covered Call ETF (XYLD). 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 | XYLD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.02 | ||
| Sortino ratioReturn per unit of downside risk | +0.53 | ||
| Omega ratioGain probability vs. loss probability | 1.51 | 1.59 | -0.08 |
| Calmar ratioReturn relative to maximum drawdown | 3.76 | 3.15 | +0.61 |
| Martin ratioReturn relative to average drawdown | 15.12 | 16.73 | -1.61 |
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 | XYLD | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.51 | 2.53 | -0.02 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.86 | 0.68 | +0.18 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 1.04 | 0.58 | +0.46 |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.28 | 0.60 | +0.68 |
Drawdowns
SHY vs. XYLD - Drawdown Comparison
The maximum SHY drawdown since its inception was -5.71%, smaller than the maximum XYLD drawdown of -33.46%. Use the drawdown chart below to compare losses from any high point for SHY and XYLD.
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Drawdown Indicators
| SHY | XYLD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.71% | -33.46% | +27.75% |
Max Drawdown (1Y)Largest decline over 1 year | -0.89% | -5.29% | +4.40% |
Max Drawdown (3Y)Largest decline over 3 years | -0.97% | -15.53% | +14.56% |
Max Drawdown (5Y)Largest decline over 5 years | -5.71% | -18.66% | +12.95% |
Max Drawdown (10Y)Largest decline over 10 years | -5.71% | -33.46% | +27.75% |
Current DrawdownCurrent decline from peak | -0.39% | -0.64% | +0.25% |
Average DrawdownAverage peak-to-trough decline | -0.52% | -3.72% | +3.20% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.22% | 0.99% | -0.77% |
Volatility
SHY vs. XYLD - Volatility Comparison
The current volatility for iShares 1-3 Year Treasury Bond ETF (SHY) is 0.38%, while Global X S&P 500 Covered Call ETF (XYLD) has a volatility of 1.33%. This indicates that SHY experiences smaller price fluctuations and is considered to be less risky than XYLD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SHY | XYLD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.38% | 1.33% | -0.95% |
Volatility (6M)Calculated over the trailing 6-month period | 0.95% | 5.46% | -4.51% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.33% | 6.60% | -5.27% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.99% | 11.23% | -9.24% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.57% | 14.21% | -12.64% |
SHY vs. XYLD - Expense Ratio Comparison
SHY has a 0.15% expense ratio, which is lower than XYLD's 0.60% expense ratio.
Dividends
SHY vs. XYLD - Dividend Comparison
SHY's dividend yield for the trailing twelve months is around 3.69%, less than XYLD's 10.57% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SHY iShares 1-3 Year Treasury Bond ETF | 3.69% | 3.81% | 3.92% | 2.99% | 1.30% | 0.26% | 0.94% | 2.12% | 1.72% | 0.98% | 0.71% | 0.54% |
XYLD Global X S&P 500 Covered Call ETF | 10.57% | 10.51% | 11.54% | 10.51% | 13.43% | 9.07% | 7.93% | 5.76% | 7.12% | 5.18% | 3.23% | 4.65% |
Frequently Asked Questions
SHY and XYLD have a correlation of 0.19, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XYLD has higher volatility (1.33%) compared to SHY (0.38%). In terms of maximum drawdown, SHY dropped -5.71% vs XYLD's -33.46%.
On 10-year performance, XYLD leads with 8.23% vs 1.63% for SHY. On fees, SHY is cheaper at 0.15% 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, XYLD has performed better with a 8.23% return vs 1.63%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SHY is cheaper with a 0.15% expense ratio, compared with 0.60% for XYLD.
XYLD has the higher dividend yield at 10.57%, compared with 3.69% for SHY.
SHY is categorized as Government Bonds, while XYLD is Derivative Income. SHY tracks ICE US Treasury 1-3 Year Index, while XYLD tracks Cboe S&P 500 BuyWrite Index. They also come from different issuers: iShares and Global X. Their fees differ too: 0.15% for SHY and 0.60% for XYLD.
XYLD currently has the higher Sharpe Ratio (2.53 vs 2.51), 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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