TLT vs. SHY

Last updated Apr 2, 2026

Compare and contrast key facts about iShares 20+ Year Treasury Bond ETF (TLT) and iShares 1-3 Year Treasury Bond ETF (SHY).

TLT and SHY are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. TLT is a passively managed fund by iShares that tracks the performance of the ICE U.S. Treasury 20+ Year Bond Index. It was launched on Jul 22, 2002. SHY is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. 1-3 Year Treasury Bond Index. It was launched on Jul 22, 2002. Both TLT and SHY are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.

Performance

TLT vs. SHY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares 20+ Year Treasury Bond ETF (TLT) and iShares 1-3 Year Treasury Bond ETF (SHY). The values are adjusted to include any dividend payments, if applicable.

TLT vs. SHY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TLT iShares 20+ Year Treasury Bond ETF	0.07%	4.25%	-8.05%	2.77%	-31.23%	-4.60%	18.15%	14.12%	-1.61%	9.18%
SHY iShares 1-3 Year Treasury Bond ETF	0.26%	4.95%	3.92%	4.16%	-3.88%	-0.71%	3.03%	3.38%	1.46%	0.26%

Returns By Period

In the year-to-date period, TLT achieves a 0.07% return, which is significantly lower than SHY's 0.26% return. Over the past 10 years, TLT has underperformed SHY with an annualized return of -1.39%, while SHY has yielded a comparatively higher 1.65% annualized return.

TLT

• 1D: -0.10%
• 1M: -3.35%
• YTD: 0.07%
• 6M: -1.23%
• 1Y: -1.44%
• 3Y*: -2.81%
• 5Y*: -5.87%
• 10Y*: -1.39%

SHY

• 1D: -0.00%
• 1M: -0.29%
• YTD: 0.26%
• 6M: 1.22%
• 1Y: 3.57%
• 3Y*: 3.88%
• 5Y*: 1.70%
• 10Y*: 1.65%

*Multi-year figures are annualized to reflect compound growth (CAGR)

TLT vs. SHY - Expense Ratio Comparison

Both TLT and SHY have an expense ratio of 0.15%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

TLT

iShares 20+ Year Treasury Bond ETF

SHY

iShares 1-3 Year Treasury Bond ETF

Return for Risk

TLT vs. SHY — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

TLT

TLT Risk / Return Rank: 9
TLT Sharpe Ratio Rank: 9
TLT Sortino Ratio Rank: 8
TLT Omega Ratio Rank: 8
TLT Calmar Ratio Rank: 11
TLT Martin Ratio Rank: 11

SHY

SHY Risk / Return Rank: 96
SHY Sharpe Ratio Rank: 95
SHY Sortino Ratio Rank: 98
SHY Omega Ratio Rank: 96
SHY Calmar Ratio Rank: 95
SHY Martin Ratio Rank: 95

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

TLT vs. SHY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares 20+ Year Treasury Bond ETF (TLT) 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.

	TLT	SHY	Difference
Sharpe ratio Return per unit of total volatility	-0.13	2.48	-2.60
Sortino ratio Return per unit of downside risk	-0.10	4.07	-4.17
Omega ratio Gain probability vs. loss probability	0.99	1.52	-0.53
Calmar ratio Return relative to maximum drawdown	-0.06	4.06	-4.13
Martin ratio Return relative to average drawdown	-0.13	15.56	-15.69
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TLT vs. SHY - Sharpe Ratio Comparison

The current TLT Sharpe Ratio is -0.13, which is lower than the SHY Sharpe Ratio of 2.48. The chart below compares the historical Sharpe Ratios of TLT and SHY, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	TLT	SHY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.13	2.48	-2.60
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.37	0.87	-1.24
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.09	1.06	-1.15
Sharpe Ratio (All Time) Calculated using the full available price history	0.26	1.29	-1.03

Correlation

The correlation between TLT and SHY is 0.61, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.

Dividends

TLT vs. SHY - Dividend Comparison

TLT's dividend yield for the trailing twelve months is around 4.53%, more than SHY's 3.72% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TLT iShares 20+ Year Treasury Bond ETF	4.53%	4.43%	4.30%	3.38%	2.67%	1.50%	1.50%	2.27%	2.63%	2.43%	2.60%	2.61%
SHY iShares 1-3 Year Treasury Bond ETF	3.72%	3.81%	3.92%	2.99%	1.30%	0.26%	0.94%	2.12%	1.72%	0.98%	0.71%	0.54%

Drawdowns

TLT vs. SHY - Drawdown Comparison

The maximum TLT drawdown since its inception was -48.35%, which is greater than SHY's maximum drawdown of -5.71%. Use the drawdown chart below to compare losses from any high point for TLT and SHY.

Drawdown Indicators

	TLT	SHY	Difference
Max Drawdown Largest peak-to-trough decline	-48.35%	-5.71%	-42.64%
Max Drawdown (1Y) Largest decline over 1 year	-9.23%	-0.89%	-8.34%
Max Drawdown (5Y) Largest decline over 5 years	-43.70%	-5.71%	-37.99%
Max Drawdown (10Y) Largest decline over 10 years	-48.35%	-5.71%	-42.64%
Current Drawdown Current decline from peak	-40.23%	-0.47%	-39.76%
Average Drawdown Average peak-to-trough decline	-13.62%	-0.52%	-13.10%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.39%	0.23%	+4.16%

Volatility

TLT vs. SHY - Volatility Comparison

iShares 20+ Year Treasury Bond ETF (TLT) has a higher volatility of 3.71% compared to iShares 1-3 Year Treasury Bond ETF (SHY) at 0.58%. This indicates that TLT'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.

Volatility by Period

	TLT	SHY	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.71%	0.58%	+3.13%
Volatility (6M) Calculated over the trailing 6-month period	6.61%	0.89%	+5.72%
Volatility (1Y) Calculated over the trailing 1-year period	11.40%	1.45%	+9.95%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.88%	1.97%	+13.91%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.93%	1.56%	+13.37%