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VEU vs. SHY
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VEU vs. SHY

Last updated Jun 3, 2026

VEU (Vanguard FTSE All-World ex-US ETF) and SHY (iShares 1-3 Year Treasury Bond ETF) are both exchange-traded funds - VEU is a Foreign Large Cap Equities fund tracking the FTSE All-World ex US 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, VEU returned 10.05%/yr vs 1.65%/yr for SHY. At a correlation of -0.12, they often move in opposite directions. VEU charges 0.04%/yr vs 0.15%/yr for SHY.

Performance

VEU vs. SHY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE All-World ex-US ETF (VEU) and iShares 1-3 Year Treasury Bond ETF (SHY). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, VEU achieves a 15.73% return, which is significantly higher than SHY's 0.48% return. Over the past 10 years, VEU has outperformed SHY with an annualized return of 10.05%, while SHY has yielded a comparatively lower 1.65% annualized return.

VEU

1D
0.73%
1M
5.19%
YTD
15.73%
6M
18.94%
1Y
33.06%
3Y*
20.01%
5Y*
9.10%
10Y*
10.05%

SHY

1D
0.00%
1M
0.00%
YTD
0.48%
6M
0.80%
1Y
3.34%
3Y*
4.04%
5Y*
1.73%
10Y*
1.65%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VEU vs. SHY - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VEU
Vanguard FTSE All-World ex-US ETF		15.73%32.35%5.56%15.84%-15.58%8.27%11.10%21.83%-14.18%27.40%
SHY
iShares 1-3 Year Treasury Bond ETF		0.48%4.95%3.92%4.16%-3.88%-0.71%3.03%3.38%1.46%0.26%

Correlation

The correlation between VEU and SHY is 0.32, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.32

Correlation (3Y)
Calculated over the trailing 3-year period

0.25

Correlation (5Y)
Calculated over the trailing 5-year period

0.19

Correlation (10Y)
Calculated over the trailing 10-year period

0.04

Correlation (All Time)
Calculated using the full available price history since Mar 9, 2007

-0.12

The correlation between VEU and SHY shifts across timeframes, from -0.12 (all time) to 0.32 (1 year), reflecting how their relationship changes across market environments.

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Vanguard FTSE All-World ex-US ETF

iShares 1-3 Year Treasury Bond ETF

Often compared with VEU:
VEU vs. VXUSVEU vs. VEAVEU vs. VOOVEU vs. VGKVEU vs. SPYVEU vs. ACWXVEU vs. VTI
Often compared with SHY:
SHY vs. SGOVSHY vs. VGSHSHY vs. SHVSHY vs. TLTSHY vs. IEFSHY vs. BILSHY vs. BSV

Return for Risk

VEU vs. SHY — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VEU
VEU Risk / Return Rank: 6464
Overall Rank
VEU Sharpe Ratio Rank: 6565
Sharpe Ratio Rank
VEU Sortino Ratio Rank: 6464
Sortino Ratio Rank
VEU Omega Ratio Rank: 6565
Omega Ratio Rank
VEU Calmar Ratio Rank: 6060
Calmar Ratio Rank
VEU Martin Ratio Rank: 6464
Martin Ratio Rank
SHY
SHY Risk / Return Rank: 7979
Overall Rank
SHY Sharpe Ratio Rank: 7676
Sharpe Ratio Rank
SHY Sortino Ratio Rank: 8989
Sortino Ratio Rank
SHY Omega Ratio Rank: 8484
Omega Ratio Rank
SHY Calmar Ratio Rank: 7272
Calmar Ratio Rank
SHY Martin Ratio Rank: 7676
Martin Ratio Rank
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.

VEU vs. SHY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE All-World ex-US ETF (VEU) 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.

VEUSHYDifference

Sharpe ratio

Return per unit of total volatility

2.18

2.51

-0.33

Sortino ratio

Return per unit of downside risk

3.00

4.14

-1.14

Omega ratio

Gain probability vs. loss probability

1.40

1.51

-0.11

Calmar ratio

Return relative to maximum drawdown

3.01

3.67

-0.66

Martin ratio

Return relative to average drawdown

11.72

14.96

-3.24

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VEU vs. SHY - Sharpe Ratio Comparison

The current VEU Sharpe Ratio is 2.18, which is comparable to the SHY Sharpe Ratio of 2.51. The chart below compares the historical Sharpe Ratios of VEU and SHY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

VEUSHYDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.18

2.51

-0.33

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.57

0.88

-0.31

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.59

1.06

-0.47

Sharpe Ratio (All Time)

Calculated using the full available price history

0.26

1.29

-1.03

Drawdowns

VEU vs. SHY - Drawdown Comparison

The maximum VEU drawdown since its inception was -61.52%, which is greater than SHY's maximum drawdown of -5.71%. Use the drawdown chart below to compare losses from any high point for VEU and SHY.

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Drawdown Indicators

VEUSHYDifference

Max Drawdown

Largest peak-to-trough decline

-61.52%

-5.71%

-55.81%

Max Drawdown (1Y)

Largest decline over 1 year

-11.43%

-0.89%

-10.54%

Max Drawdown (3Y)

Largest decline over 3 years

-13.69%

-0.97%

-12.72%

Max Drawdown (5Y)

Largest decline over 5 years

-29.31%

-5.71%

-23.60%

Max Drawdown (10Y)

Largest decline over 10 years

-34.98%

-5.71%

-29.27%

Current Drawdown

Current decline from peak

0.00%

-0.26%

+0.26%

Average Drawdown

Average peak-to-trough decline

-13.14%

-0.52%

-12.62%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.93%

0.22%

+2.71%

Volatility

VEU vs. SHY - Volatility Comparison

Vanguard FTSE All-World ex-US ETF (VEU) has a higher volatility of 5.57% compared to iShares 1-3 Year Treasury Bond ETF (SHY) at 0.37%. This indicates that VEU'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

VEUSHYDifference

Volatility (1M)

Calculated over the trailing 1-month period

5.57%

0.37%

+5.20%

Volatility (6M)

Calculated over the trailing 6-month period

13.01%

0.93%

+12.08%

Volatility (1Y)

Calculated over the trailing 1-year period

15.28%

1.34%

+13.94%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

16.07%

1.98%

+14.09%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

17.21%

1.57%

+15.64%

VEU vs. SHY - Expense Ratio Comparison

VEU has a 0.04% 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

VEU vs. SHY - Dividend Comparison

VEU's dividend yield for the trailing twelve months is around 2.58%, less than SHY's 3.68% yield.

PositionTTM20252024202320222021202020192018201720162015
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%
VEU
Vanguard FTSE All-World ex-US ETF		2.58%3.09%3.24%3.32%3.12%3.08%2.00%3.10%3.27%2.66%2.96%2.95%

Frequently Asked Questions

VEU and SHY have a correlation of 0.32, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VEU has higher volatility (5.57%) compared to SHY (0.37%). In terms of maximum drawdown, VEU dropped -61.52% vs SHY's -5.71%.

On 10-year performance, VEU leads with 10.05% vs 1.65% for SHY. On fees, VEU is cheaper at 0.04% per year. On volatility, SHY has been the lower-risk option at 0.37%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, VEU has performed better with a 10.05% return vs 1.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VEU is cheaper with a 0.04% expense ratio, compared with 0.15% for SHY.

SHY has the higher dividend yield at 3.68%, compared with 2.58% for VEU.

VEU is categorized as Foreign Large Cap Equities, while SHY is Government Bonds. VEU tracks FTSE All-World ex US Index, while SHY tracks ICE US Treasury 1-3 Year Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.04% for VEU and 0.15% for SHY.

SHY currently has the higher Sharpe Ratio (2.51 vs 2.18), 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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