VGSH vs. SHY
Compare and contrast key facts about Vanguard Short-Term Treasury ETF (VGSH) and iShares 1-3 Year Treasury Bond ETF (SHY).
VGSH and SHY are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VGSH is a passively managed fund by Vanguard that tracks the performance of the Barclays U.S. 1-3 Year Government Float Adjusted Index. It was launched on Nov 19, 2009. 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 VGSH 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.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VGSH or SHY.
Key characteristics
| VGSH | SHY | |
|---|---|---|
| Sharpe Ratio | 2.43 | 2.35 |
| Sortino Ratio | 3.79 | 3.66 |
| Omega Ratio | 1.51 | 1.48 |
| Calmar Ratio | 3.03 | 2.71 |
| Martin Ratio | 11.77 | 11.21 |
| Ulcer Index | 0.39% | 0.40% |
| Daily Std Dev | 1.88% | 1.88% |
| Max Drawdown | -5.70% | -5.71% |
| Current Drawdown | -0.80% | -0.82% |
Correlation
The correlation between VGSH and SHY is 0.80, 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
VGSH vs. SHY - Performance Comparison
Returns By Period
The year-to-date returns for both stocks are quite close, with VGSH having a 3.40% return and SHY slightly lower at 3.32%. Over the past 10 years, VGSH has outperformed SHY with an annualized return of 1.28%, while SHY has yielded a comparatively lower 1.20% annualized return.
VGSH
3.40%
0.02%
2.71%
4.30%
1.25%
1.28%
SHY
3.32%
-0.00%
2.64%
4.15%
1.16%
1.20%
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VGSH vs. SHY - Expense Ratio Comparison
VGSH 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%.
Risk-Adjusted Performance
VGSH vs. SHY - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Treasury ETF (VGSH) 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
VGSH vs. SHY - Dividend Comparison
VGSH's dividend yield for the trailing twelve months is around 3.83%, more than SHY's 3.56% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VGSH Vanguard Short-Term Treasury ETF | 3.83% | 3.32% | 1.15% | 0.66% | 1.75% | 2.28% | 1.79% | 1.10% | 0.84% | 0.71% | 0.46% | 0.34% |
SHY iShares 1-3 Year Treasury Bond ETF | 3.56% | 2.99% | 1.30% | 0.26% | 0.94% | 2.12% | 1.72% | 0.98% | 0.72% | 0.54% | 0.36% | 0.26% |
Drawdowns
VGSH vs. SHY - Drawdown Comparison
The maximum VGSH drawdown since its inception was -5.70%, roughly equal to the maximum SHY drawdown of -5.71%. Use the drawdown chart below to compare losses from any high point for VGSH and SHY. For additional features, visit the drawdowns tool.
Volatility
VGSH vs. SHY - Volatility Comparison
Vanguard Short-Term Treasury ETF (VGSH) and iShares 1-3 Year Treasury Bond ETF (SHY) have volatilities of 0.58% and 0.56%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.