VNQ vs. SHV
VNQ (Vanguard Real Estate ETF) and SHV (iShares 0-1 Year Treasury Bond ETF) are both exchange-traded funds - VNQ is a REIT fund tracking the MSCI US Investable Market Real Estate 25/50 Index, while SHV is a Government Bonds fund tracking the ICE Short US Treasury Securities Index. Both are passively managed. Over the past 10 years, VNQ returned 5.65%/yr vs 2.23%/yr for SHV. At a correlation of -0.03, they often move in opposite directions. VNQ charges 0.13%/yr vs 0.15%/yr for SHV.
Performance
VNQ vs. SHV - Performance Comparison
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Returns By Period
In the year-to-date period, VNQ achieves a 12.51% return, which is significantly higher than SHV's 1.53% return. Over the past 10 years, VNQ has outperformed SHV with an annualized return of 5.65%, while SHV has yielded a comparatively lower 2.23% annualized return.
VNQ
- 1D
- 0.92%
- 1M
- 2.73%
- YTD
- 12.51%
- 6M
- 12.32%
- 1Y
- 12.92%
- 3Y*
- 10.14%
- 5Y*
- 2.55%
- 10Y*
- 5.65%
SHV
- 1D
- 0.03%
- 1M
- 0.31%
- YTD
- 1.53%
- 6M
- 1.73%
- 1Y
- 3.90%
- 3Y*
- 4.63%
- 5Y*
- 3.34%
- 10Y*
- 2.23%
VNQ vs. SHV - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VNQ Vanguard Real Estate ETF | 12.51% | 3.24% | 4.81% | 11.85% | -26.25% | 40.54% | -4.61% | 28.91% | -6.03% | 4.90% |
SHV iShares 0-1 Year Treasury Bond ETF | 1.53% | 4.21% | 5.12% | 5.04% | 0.94% | -0.10% | 0.81% | 2.36% | 1.72% | 0.67% |
Correlation
The correlation between VNQ and SHV is 0.14, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.14 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.14 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.11 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.05 |
Correlation (All Time) Calculated using the full available price history since Jan 11, 2007 | -0.03 |
The correlation between VNQ and SHV shifts across timeframes, from -0.03 (all time) to 0.14 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
VNQ vs. SHV — Risk / Return Rank
VNQ
SHV
VNQ vs. SHV - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Real Estate ETF (VNQ) 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.
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.
| VNQ | SHV | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -18.53 | ||
| Sortino ratioReturn per unit of downside risk | -148.15 | ||
| Omega ratioGain probability vs. loss probability | 1.17 | 53.77 | -52.59 |
| Calmar ratioReturn relative to maximum drawdown | 1.56 | 431.38 | -429.83 |
| Martin ratioReturn relative to average drawdown | 4.90 | 2,419.80 | -2,414.90 |
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Drawdowns
VNQ vs. SHV - Drawdown Comparison
The maximum VNQ drawdown since its inception was -73.07%, which is greater than SHV's maximum drawdown of -0.45%. Use the drawdown chart below to compare losses from any high point for VNQ and SHV.
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Drawdown Indicators
| VNQ | SHV | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -73.07% | -0.45% | -72.62% |
Max Drawdown (1Y)Largest decline over 1 year | -8.34% | -0.01% | -8.33% |
Max Drawdown (3Y)Largest decline over 3 years | -17.46% | -0.03% | -17.43% |
Max Drawdown (5Y)Largest decline over 5 years | -34.48% | -0.39% | -34.09% |
Max Drawdown (10Y)Largest decline over 10 years | -42.40% | -0.45% | -41.95% |
Current DrawdownCurrent decline from peak | 0.00% | 0.00% | 0.00% |
Average DrawdownAverage peak-to-trough decline | -13.61% | -0.03% | -13.58% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.65% | 0.00% | +2.65% |
Volatility
VNQ vs. SHV - Volatility Comparison
Vanguard Real Estate ETF (VNQ) has a higher volatility of 4.72% compared to iShares 0-1 Year Treasury Bond ETF (SHV) at 0.04%. This indicates that VNQ'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.
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Volatility by Period
| VNQ | SHV | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.72% | 0.04% | +4.68% |
Volatility (6M)Calculated over the trailing 6-month period | 9.77% | 0.12% | +9.65% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.54% | 0.20% | +13.34% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.84% | 0.29% | +18.55% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.72% | 0.28% | +20.44% |
VNQ vs. SHV - Expense Ratio Comparison
VNQ has a 0.13% 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
VNQ vs. SHV - Dividend Comparison
VNQ's dividend yield for the trailing twelve months is around 3.54%, 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% |
VNQ Vanguard Real Estate ETF | 3.54% | 3.92% | 3.85% | 3.95% | 3.91% | 2.56% | 3.93% | 3.39% | 4.74% | 4.23% | 4.82% | 3.92% |
Frequently Asked Questions
VNQ and SHV have a correlation of 0.14, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VNQ has higher volatility (4.72%) compared to SHV (0.04%). In terms of maximum drawdown, VNQ dropped -73.07% vs SHV's -0.45%.
On 10-year performance, VNQ leads with 5.65% vs 2.23% for SHV. On fees, VNQ is cheaper at 0.13% per year. On volatility, SHV has been the lower-risk option at 0.04%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VNQ has performed better with a 5.65% return vs 2.23%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VNQ is cheaper with a 0.13% expense ratio, compared with 0.15% for SHV.
SHV has the higher dividend yield at 3.83%, compared with 3.54% for VNQ.
VNQ is categorized as REIT, while SHV is Government Bonds. VNQ tracks MSCI US Investable Market Real Estate 25/50 Index, while SHV tracks ICE Short US Treasury Securities Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.13% for VNQ and 0.15% for SHV.
SHV currently has the higher Sharpe Ratio (19.49 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.
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