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 | 4.44% | 3.27% |
| 1Y Return | 8.11% | 5.24% |
| 3Y Return (Ann) | 1.29% | 1.06% |
| 5Y Return (Ann) | 1.83% | 1.19% |
| 10Y Return (Ann) | 2.05% | 1.18% |
| Sharpe Ratio | 2.85 | 2.76 |
| Sortino Ratio | 4.68 | 4.46 |
| Omega Ratio | 1.60 | 1.58 |
| Calmar Ratio | 1.68 | 2.09 |
| Martin Ratio | 17.03 | 15.04 |
| Ulcer Index | 0.48% | 0.35% |
| Daily Std Dev | 2.86% | 1.92% |
| Max Drawdown | -9.68% | -5.71% |
| Current Drawdown | -0.99% | -0.87% |
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 4.44% return, which is significantly higher than SHY's 3.27% return. Over the past 10 years, VFSTX has outperformed SHY with an annualized return of 2.05%, while SHY has yielded a comparatively lower 1.18% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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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 3.91%, more than SHY's 3.86% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VFSTX Vanguard Short-Term Investment-Grade Fund Investor Shares | 3.91% | 3.04% | 1.93% | 1.62% | 2.24% | 2.81% | 2.67% | 1.99% | 1.97% | 1.98% | 1.89% | 1.82% |
SHY iShares 1-3 Year Treasury Bond ETF | 3.86% | 2.99% | 1.30% | 0.26% | 0.94% | 2.12% | 1.72% | 0.98% | 0.72% | 0.54% | 0.36% | 0.26% |
Drawdowns
VFSTX vs. SHY - Drawdown Comparison
The maximum VFSTX drawdown since its inception was -9.68%, 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 0.83% compared to iShares 1-3 Year Treasury Bond ETF (SHY) at 0.36%. 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.