SLQD vs. SHY
SLQD (iShares 0-5 Year Investment Grade Corporate Bond ETF) and SHY (iShares 1-3 Year Treasury Bond ETF) are both exchange-traded funds - SLQD is a Corporate Bonds fund tracking the Markit iBoxx USD Liquid Investment Grade 0-5 Index, while SHY is a Government Bonds fund tracking the ICE US Treasury 1-3 Year Index. Both are passively managed. Over the past 10 years, SLQD returned 2.66%/yr vs 1.65%/yr for SHY. A 0.69 correlation means they provide meaningful diversification when combined. SLQD charges 0.06%/yr vs 0.15%/yr for SHY.
Performance
SLQD vs. SHY - Performance Comparison
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Returns By Period
In the year-to-date period, SLQD achieves a 0.84% return, which is significantly higher than SHY's 0.43% return. Over the past 10 years, SLQD has outperformed SHY with an annualized return of 2.66%, while SHY has yielded a comparatively lower 1.65% annualized return.
SLQD
- 1D
- -0.08%
- 1M
- 0.24%
- YTD
- 0.84%
- 6M
- 1.16%
- 1Y
- 4.46%
- 3Y*
- 5.35%
- 5Y*
- 2.52%
- 10Y*
- 2.66%
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%
SLQD vs. SHY - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SLQD iShares 0-5 Year Investment Grade Corporate Bond ETF | 0.84% | 6.27% | 4.94% | 5.98% | -4.38% | -0.61% | 4.76% | 6.09% | 1.09% | 2.12% |
SHY iShares 1-3 Year Treasury Bond ETF | 0.43% | 4.95% | 3.92% | 4.16% | -3.88% | -0.71% | 3.03% | 3.38% | 1.46% | 0.26% |
Correlation
The correlation between SLQD and SHY is 0.89, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.89 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.89 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.87 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.76 |
Correlation (All Time) Calculated using the full available price history since Oct 18, 2013 | 0.69 |
The correlation between SLQD and SHY shifts across timeframes, from 0.69 (all time) to 0.89 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
SLQD vs. SHY — Risk / Return Rank
SLQD
SHY
SLQD vs. SHY - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 0-5 Year Investment Grade Corporate Bond ETF (SLQD) and iShares 1-3 Year Treasury Bond ETF (SHY). 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.
| SLQD | SHY | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.53 | ||
| Sortino ratioReturn per unit of downside risk | +0.78 | ||
| Omega ratioGain probability vs. loss probability | 1.62 | 1.51 | +0.11 |
| Calmar ratioReturn relative to maximum drawdown | 4.22 | 3.75 | +0.47 |
| Martin ratioReturn relative to average drawdown | 19.08 | 15.21 | +3.87 |
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
| SLQD | SHY | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 3.02 | 2.49 | +0.53 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 1.04 | 0.87 | +0.17 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.85 | 1.06 | -0.21 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.85 | 1.28 | -0.44 |
Drawdowns
SLQD vs. SHY - Drawdown Comparison
The maximum SLQD drawdown since its inception was -12.69%, which is greater than SHY's maximum drawdown of -5.71%. Use the drawdown chart below to compare losses from any high point for SLQD and SHY.
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Drawdown Indicators
| SLQD | SHY | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -12.69% | -5.71% | -6.98% |
Max Drawdown (1Y)Largest decline over 1 year | -1.06% | -0.89% | -0.17% |
Max Drawdown (3Y)Largest decline over 3 years | -1.06% | -0.97% | -0.09% |
Max Drawdown (5Y)Largest decline over 5 years | -7.63% | -5.71% | -1.92% |
Max Drawdown (10Y)Largest decline over 10 years | -12.69% | -5.71% | -6.98% |
Current DrawdownCurrent decline from peak | -0.13% | -0.31% | +0.18% |
Average DrawdownAverage peak-to-trough decline | -0.87% | -0.52% | -0.35% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.23% | 0.22% | +0.01% |
Volatility
SLQD vs. SHY - Volatility Comparison
iShares 0-5 Year Investment Grade Corporate Bond ETF (SLQD) has a higher volatility of 0.46% compared to iShares 1-3 Year Treasury Bond ETF (SHY) at 0.35%. This indicates that SLQD's price experiences larger fluctuations and is considered to be riskier than SHY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SLQD | SHY | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.46% | 0.35% | +0.11% |
Volatility (6M)Calculated over the trailing 6-month period | 1.09% | 0.92% | +0.17% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.49% | 1.34% | +0.15% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.44% | 1.98% | +0.46% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.14% | 1.57% | +1.57% |
SLQD vs. SHY - Expense Ratio Comparison
SLQD has a 0.06% expense ratio, which is lower than SHY's 0.15% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
SLQD vs. SHY - Dividend Comparison
SLQD's dividend yield for the trailing twelve months is around 4.32%, more than SHY's 3.68% 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% |
SLQD iShares 0-5 Year Investment Grade Corporate Bond ETF | 4.32% | 4.15% | 3.71% | 2.99% | 2.00% | 1.67% | 2.34% | 2.89% | 2.55% | 1.98% | 1.81% | 1.43% |
Frequently Asked Questions
SLQD and SHY have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SLQD has higher volatility (0.46%) compared to SHY (0.35%). In terms of maximum drawdown, SLQD dropped -12.69% vs SHY's -5.71%.
On 10-year performance, SLQD leads with 2.66% vs 1.65% for SHY. On fees, SLQD is cheaper at 0.06% per year. On volatility, SHY has been the lower-risk option at 0.35%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, SLQD has performed better with a 2.66% return vs 1.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SLQD is cheaper with a 0.06% expense ratio, compared with 0.15% for SHY.
SLQD has the higher dividend yield at 4.32%, compared with 3.68% for SHY.
SLQD is categorized as Corporate Bonds, while SHY is Government Bonds. SLQD tracks Markit iBoxx USD Liquid Investment Grade 0-5 Index, while SHY tracks ICE US Treasury 1-3 Year Index. Their fees differ too: 0.06% for SLQD and 0.15% for SHY.
SLQD currently has the higher Sharpe Ratio (3.02 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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