VV vs. SHY
Compare and contrast key facts about Vanguard Large-Cap ETF (VV) and iShares 1-3 Year Treasury Bond ETF (SHY).
VV and SHY are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VV is a passively managed fund by Vanguard that tracks the performance of the CRSP US Large Cap Index. It was launched on Jan 27, 2004. 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 VV 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: VV or SHY.
Key characteristics
| VV | SHY | |
|---|---|---|
| YTD Return | 5.88% | -0.17% |
| 1Y Return | 23.32% | 2.31% |
| 3Y Return (Ann) | 7.24% | -0.24% |
| 5Y Return (Ann) | 13.30% | 0.91% |
| 10Y Return (Ann) | 12.30% | 0.88% |
| Sharpe Ratio | 1.97 | 1.01 |
| Daily Std Dev | 11.85% | 2.06% |
| Max Drawdown | -54.81% | -5.71% |
| Current Drawdown | -4.28% | -0.82% |
Correlation
The correlation between VV and SHY is -0.20. This indicates that the assets' prices tend to move in opposite directions. Negative correlation can be particularly beneficial for diversification and risk management, as one asset may offset the losses of the other during market fluctuations.
Performance
VV vs. SHY - Performance Comparison
In the year-to-date period, VV achieves a 5.88% return, which is significantly higher than SHY's -0.17% return. Over the past 10 years, VV has outperformed SHY with an annualized return of 12.30%, while SHY has yielded a comparatively lower 0.88% 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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VV vs. SHY - Expense Ratio Comparison
VV 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
VV vs. SHY - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Large-Cap ETF (VV) 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
VV vs. SHY - Dividend Comparison
VV's dividend yield for the trailing twelve months is around 1.39%, less than SHY's 3.11% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VV Vanguard Large-Cap ETF | 1.39% | 1.41% | 1.66% | 1.19% | 1.46% | 1.81% | 2.09% | 1.75% | 1.98% | 1.96% | 1.77% | 1.75% |
SHY iShares 1-3 Year Treasury Bond ETF | 3.11% | 2.99% | 1.30% | 0.26% | 0.94% | 2.12% | 1.72% | 0.98% | 0.71% | 0.54% | 0.36% | 0.26% |
Drawdowns
VV vs. SHY - Drawdown Comparison
The maximum VV drawdown since its inception was -54.81%, which is greater than SHY's maximum drawdown of -5.71%. Use the drawdown chart below to compare losses from any high point for VV and SHY. For additional features, visit the drawdowns tool.
Volatility
VV vs. SHY - Volatility Comparison
Vanguard Large-Cap ETF (VV) has a higher volatility of 3.96% compared to iShares 1-3 Year Treasury Bond ETF (SHY) at 0.55%. This indicates that VV'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.