VFSTX vs. SHY
Compare and contrast key facts about Vanguard Short-Term Investment-Grade Fund Investor Shares (VFSTX) and iShares 1-3 Year Treasury Bond ETF (SHY).
VFSTX is managed by Vanguard. It was launched on Oct 29, 1982. 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.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VFSTX or SHY.
Key characteristics
| VFSTX | SHY | |
|---|---|---|
| YTD Return | 5.11% | 3.95% |
| 1Y Return | 9.33% | 6.74% |
| 3Y Return (Ann) | 1.38% | 1.13% |
| 5Y Return (Ann) | 2.12% | 1.39% |
| 10Y Return (Ann) | 2.21% | 1.28% |
| Sharpe Ratio | 3.11 | 3.42 |
| Daily Std Dev | 2.97% | 1.95% |
| Max Drawdown | -9.35% | -5.71% |
| Current Drawdown | -0.10% | -0.11% |
Correlation
The correlation between VFSTX and SHY is 0.72, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
VFSTX vs. SHY - Performance Comparison
In the year-to-date period, VFSTX achieves a 5.11% return, which is significantly higher than SHY's 3.95% return. Over the past 10 years, VFSTX has outperformed SHY with an annualized return of 2.21%, while SHY has yielded a comparatively lower 1.28% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
VFSTX vs. SHY - Expense Ratio Comparison
VFSTX has a 0.20% expense ratio, which is higher than SHY's 0.15% 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%.
Risk-Adjusted Performance
VFSTX vs. SHY - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Investment-Grade Fund Investor Shares (VFSTX) 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.
Dividends
VFSTX vs. SHY - Dividend Comparison
VFSTX's dividend yield for the trailing twelve months is around 3.71%, more than SHY's 3.67% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VFSTX Vanguard Short-Term Investment-Grade Fund Investor Shares | 3.71% | 3.05% | 1.93% | 1.98% | 2.23% | 2.82% | 2.68% | 1.82% | 2.06% | 2.00% | 1.97% | 2.06% |
SHY iShares 1-3 Year Treasury Bond ETF | 3.67% | 2.99% | 1.30% | 0.26% | 0.94% | 2.12% | 1.72% | 0.98% | 0.71% | 0.54% | 0.36% | 0.26% |
Drawdowns
VFSTX vs. SHY - Drawdown Comparison
The maximum VFSTX drawdown since its inception was -9.35%, which is greater than SHY's maximum drawdown of -5.71%. Use the drawdown chart below to compare losses from any high point for VFSTX and SHY. For additional features, visit the drawdowns tool.
Volatility
VFSTX vs. SHY - Volatility Comparison
Vanguard Short-Term Investment-Grade Fund Investor Shares (VFSTX) has a higher volatility of 0.55% compared to iShares 1-3 Year Treasury Bond ETF (SHY) at 0.47%. This indicates that VFSTX'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.