VGIT vs. SHY
VGIT (Vanguard Intermediate-Term Treasury ETF) and SHY (iShares 1-3 Year Treasury Bond ETF) are both Government Bonds funds - VGIT tracks the Bloomberg U.S. Treasury 3-10 Year Index while SHY tracks the ICE US Treasury 1-3 Year Index. Both are passively managed. Over the past 10 years, VGIT returned 1.20%/yr vs 1.65%/yr for SHY. Their correlation of 0.81 suggests significant overlap in exposure. VGIT charges 0.03%/yr vs 0.15%/yr for SHY.
Performance
VGIT vs. SHY - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, VGIT achieves a -0.29% return, which is significantly lower than SHY's 0.55% return. Over the past 10 years, VGIT has underperformed SHY with an annualized return of 1.20%, while SHY has yielded a comparatively higher 1.65% annualized return.
VGIT
- 1D
- -0.12%
- 1M
- 0.16%
- YTD
- -0.29%
- 6M
- 0.04%
- 1Y
- 3.43%
- 3Y*
- 3.69%
- 5Y*
- 0.01%
- 10Y*
- 1.20%
SHY
- 1D
- -0.02%
- 1M
- 0.19%
- YTD
- 0.55%
- 6M
- 0.80%
- 1Y
- 3.29%
- 3Y*
- 4.15%
- 5Y*
- 1.74%
- 10Y*
- 1.65%
VGIT vs. SHY - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VGIT Vanguard Intermediate-Term Treasury ETF | -0.29% | 7.34% | 1.39% | 4.28% | -10.53% | -2.64% | 7.71% | 6.19% | 1.35% | 1.70% |
SHY iShares 1-3 Year Treasury Bond ETF | 0.55% | 4.95% | 3.92% | 4.16% | -3.88% | -0.71% | 3.03% | 3.38% | 1.46% | 0.26% |
Correlation
The correlation between VGIT and SHY is 0.91, 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 | 0.91 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.90 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.90 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.86 |
Correlation (All Time) Calculated using the full available price history since Nov 23, 2009 | 0.81 |
The correlation between VGIT and SHY has been stable across timeframes, ranging from 0.81 to 0.91 - a consistent structural relationship.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
VGIT vs. SHY — Risk / Return Rank
VGIT
SHY
VGIT vs. SHY - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Intermediate-Term Treasury ETF (VGIT) 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| VGIT | SHY | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.47 | ||
| Sortino ratioReturn per unit of downside risk | -2.50 | ||
| Omega ratioGain probability vs. loss probability | 1.17 | 1.50 | -0.33 |
| Calmar ratioReturn relative to maximum drawdown | 1.13 | 3.64 | -2.51 |
| Martin ratioReturn relative to average drawdown | 3.18 | 14.45 | -11.27 |
Loading charts...
Drawdowns
VGIT vs. SHY - Drawdown Comparison
The maximum VGIT drawdown since its inception was -16.05%, which is greater than SHY's maximum drawdown of -5.71%. Use the drawdown chart below to compare losses from any high point for VGIT and SHY.
Loading charts...
Drawdown Indicators
| VGIT | SHY | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -16.05% | -5.71% | -10.34% |
Max Drawdown (1Y)Largest decline over 1 year | -2.83% | -0.89% | -1.94% |
Max Drawdown (3Y)Largest decline over 3 years | -4.34% | -0.97% | -3.37% |
Max Drawdown (5Y)Largest decline over 5 years | -15.02% | -5.71% | -9.31% |
Max Drawdown (10Y)Largest decline over 10 years | -16.05% | -5.71% | -10.34% |
Current DrawdownCurrent decline from peak | -2.22% | -0.18% | -2.04% |
Average DrawdownAverage peak-to-trough decline | -3.52% | -0.52% | -3.00% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.01% | 0.22% | +0.79% |
Volatility
VGIT vs. SHY - Volatility Comparison
Vanguard Intermediate-Term Treasury ETF (VGIT) has a higher volatility of 1.15% compared to iShares 1-3 Year Treasury Bond ETF (SHY) at 0.40%. This indicates that VGIT'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.
Loading charts...
Volatility by Period
| VGIT | SHY | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.15% | 0.40% | +0.75% |
Volatility (6M)Calculated over the trailing 6-month period | 2.40% | 0.95% | +1.45% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.34% | 1.33% | +2.01% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.38% | 1.99% | +3.39% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.50% | 1.57% | +2.93% |
VGIT vs. SHY - Expense Ratio Comparison
VGIT has a 0.03% 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
VGIT vs. SHY - Dividend Comparison
VGIT's dividend yield for the trailing twelve months is around 3.86%, 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% |
VGIT Vanguard Intermediate-Term Treasury ETF | 3.86% | 3.79% | 3.67% | 2.73% | 1.74% | 1.69% | 2.23% | 2.24% | 2.05% | 1.67% | 1.69% | 1.69% |
Frequently Asked Questions
With a correlation of 0.91, VGIT and SHY move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
VGIT has higher volatility (1.15%) compared to SHY (0.40%). In terms of maximum drawdown, VGIT dropped -16.05% vs SHY's -5.71%.
On 10-year performance, SHY leads with 1.65% vs 1.20% for VGIT. On fees, VGIT is cheaper at 0.03% per year. On volatility, SHY has been the lower-risk option at 0.40%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, SHY has performed better with a 1.65% return vs 1.20%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VGIT is cheaper with a 0.03% expense ratio, compared with 0.15% for SHY.
VGIT has the higher dividend yield at 3.86%, compared with 3.68% for SHY.
VGIT tracks Bloomberg U.S. Treasury 3-10 Year Index, while SHY tracks ICE US Treasury 1-3 Year Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.03% for VGIT and 0.15% for SHY.
SHY currently has the higher Sharpe Ratio (2.43 vs 0.96), 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.
Find the right allocation for VGIT and SHY
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer