VGUS vs. SHV

Last updated Jun 3, 2026

VGUS (Vanguard Ultra-Short Treasury ETF) and SHV (iShares 0-1 Year Treasury Bond ETF) are both exchange-traded funds - VGUS is a Ultrashort Bond fund tracking the Bloomberg Short Treasury Index, while SHV is a Government Bonds fund tracking the ICE Short US Treasury Securities Index. Both are passively managed. Over the past year, VGUS returned 3.93% vs 3.92% for SHV. At a 0.50 correlation, their price movements are largely independent. VGUS charges 0.07%/yr vs 0.15%/yr for SHV.

Performance

VGUS vs. SHV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Ultra-Short Treasury ETF (VGUS) and iShares 0-1 Year Treasury Bond ETF (SHV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with VGUS having a 1.43% return and SHV slightly lower at 1.42%.

VGUS

• 1D: 0.00%
• 1M: 0.29%
• YTD: 1.43%
• 6M: 1.75%
• 1Y: 3.93%
• 3Y*: —
• 5Y*: —
• 10Y*: —

SHV

• 1D: 0.02%
• 1M: 0.29%
• YTD: 1.42%
• 6M: 1.76%
• 1Y: 3.92%
• 3Y*: 4.64%
• 5Y*: 3.32%
• 10Y*: 2.23%

*Multi-year figures are annualized to reflect compound growth (CAGR)

VGUS vs. SHV - Yearly Performance Comparison

	2026 (YTD)	2025
VGUS Vanguard Ultra-Short Treasury ETF	1.43%	3.77%
SHV iShares 0-1 Year Treasury Bond ETF	1.42%	3.74%

Correlation

The correlation between VGUS and SHV is 0.52, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.52
Correlation (All Time) Calculated using the full available price history since Feb 12, 2025	0.50

The correlation between VGUS and SHV has been stable across timeframes, ranging from 0.50 to 0.52 - a consistent structural relationship.

Return for Risk

VGUS vs. SHV — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VGUS

VGUS Risk / Return Rank: 100
VGUS Sharpe Ratio Rank: 100
VGUS Sortino Ratio Rank: 100
VGUS Omega Ratio Rank: 100
VGUS Calmar Ratio Rank: 99
VGUS Martin Ratio Rank: 100

SHV

SHV Risk / Return Rank: 100
SHV Sharpe Ratio Rank: 100
SHV Sortino Ratio Rank: 100
SHV Omega Ratio Rank: 100
SHV Calmar Ratio Rank: 100
SHV Martin Ratio Rank: 100

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.

VGUS vs. SHV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Ultra-Short Treasury ETF (VGUS) and iShares 0-1 Year Treasury Bond ETF (SHV). 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.

	VGUS	SHV	Difference
Sharpe ratio Return per unit of total volatility	11.97	19.64	-7.67
Sortino ratio Return per unit of downside risk	34.67	150.25	-115.58
Omega ratio Gain probability vs. loss probability	10.52	54.02	-43.50
Calmar ratio Return relative to maximum drawdown	54.40	433.49	-379.09
Martin ratio Return relative to average drawdown	412.24	2,436.45	-2,024.21
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VGUS vs. SHV - Sharpe Ratio Comparison

The current VGUS Sharpe Ratio is 11.97, which is lower than the SHV Sharpe Ratio of 19.64. The chart below compares the historical Sharpe Ratios of VGUS and SHV, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VGUS	SHV	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	11.97	19.64	-7.67
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	11.57	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	8.09	—
Sharpe Ratio (All Time) Calculated using the full available price history	11.71	4.50	+7.21

Drawdowns

VGUS vs. SHV - Drawdown Comparison

The maximum VGUS drawdown since its inception was -0.07%, smaller than the maximum SHV drawdown of -0.45%. Use the drawdown chart below to compare losses from any high point for VGUS and SHV.

Drawdown Indicators

	VGUS	SHV	Difference
Max Drawdown Largest peak-to-trough decline	-0.07%	-0.45%	+0.38%
Max Drawdown (1Y) Largest decline over 1 year	-0.07%	-0.01%	-0.06%
Max Drawdown (3Y) Largest decline over 3 years	—	-0.03%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-0.40%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-0.45%	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-0.00%	-0.03%	+0.03%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.01%	0.00%	+0.01%

Volatility

VGUS vs. SHV - Volatility Comparison

Vanguard Ultra-Short Treasury ETF (VGUS) has a higher volatility of 0.11% compared to iShares 0-1 Year Treasury Bond ETF (SHV) at 0.05%. This indicates that VGUS's price experiences larger fluctuations and is considered to be riskier than SHV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VGUS	SHV	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.11%	0.05%	+0.06%
Volatility (6M) Calculated over the trailing 6-month period	0.18%	0.12%	+0.06%
Volatility (1Y) Calculated over the trailing 1-year period	0.33%	0.20%	+0.13%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.34%	0.29%	+0.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.34%	0.28%	+0.06%

VGUS vs. SHV - Expense Ratio Comparison

VGUS has a 0.07% expense ratio, which is lower than SHV'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

VGUS vs. SHV - Dividend Comparison

VGUS's dividend yield for the trailing twelve months is around 3.61%, less than SHV's 3.83% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SHV iShares 0-1 Year Treasury Bond ETF	3.83%	4.09%	5.02%	4.73%	1.39%	0.00%	0.74%	2.19%	1.66%	0.72%	0.34%	0.03%
VGUS Vanguard Ultra-Short Treasury ETF	3.61%	3.12%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VGUS and SHV in my portfolio?

VGUS and SHV have a correlation of 0.52, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VGUS or SHV?

VGUS has higher volatility (0.11%) compared to SHV (0.05%). In terms of maximum drawdown, VGUS dropped -0.07% vs SHV's -0.45%.

Which ETF is better, VGUS or SHV?

On 1-year performance, VGUS leads with 3.93% vs 3.92% for SHV. On fees, VGUS is cheaper at 0.07% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VGUS or SHV?

Over the 1-year period, VGUS has performed better with a 3.93% return vs 3.92%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VGUS or SHV?

VGUS is cheaper with a 0.07% expense ratio, compared with 0.15% for SHV.

Which ETF pays a higher dividend yield, VGUS or SHV?

SHV has the higher dividend yield at 3.83%, compared with 3.61% for VGUS.

What is the main difference between VGUS and SHV?

VGUS is categorized as Ultrashort Bond, while SHV is Government Bonds. VGUS tracks Bloomberg Short Treasury Index, while SHV tracks ICE Short US Treasury Securities Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.07% for VGUS and 0.15% for SHV.

Which has better risk-adjusted returns?

SHV currently has the higher Sharpe Ratio (19.64 vs 11.97), 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.