ZTRE vs. ISTB
ZTRE (F/M 3-Year Investment Grade Corporate Bond ETF) and ISTB (iShares Core 1-5 Year USD Bond ETF) are both Short-Term Bond funds - ZTRE tracks the ICE 3-Year US Target Maturity Corporate Index - Benchmark TR Gross while ISTB tracks the BBG US Universal 1-5 Year Index (USD). Both are passively managed. Over the past year, ZTRE returned 3.84% vs 3.73% for ISTB. Their correlation of 0.92 suggests significant overlap in exposure. ZTRE charges 0.15%/yr vs 0.06%/yr for ISTB.
Performance
ZTRE vs. ISTB - Performance Comparison
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Returns By Period
In the year-to-date period, ZTRE achieves a 0.47% return, which is significantly higher than ISTB's 0.44% return.
ZTRE
- 1D
- -0.04%
- 1M
- 0.25%
- YTD
- 0.47%
- 6M
- 0.83%
- 1Y
- 3.84%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
ISTB
- 1D
- -0.12%
- 1M
- 0.19%
- YTD
- 0.44%
- 6M
- 0.59%
- 1Y
- 3.73%
- 3Y*
- 4.98%
- 5Y*
- 1.90%
- 10Y*
- 2.23%
ZTRE vs. ISTB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
ZTRE F/M 3-Year Investment Grade Corporate Bond ETF | 0.47% | 6.60% | 0.32% |
ISTB iShares Core 1-5 Year USD Bond ETF | 0.44% | 6.36% | 0.40% |
Correlation
The correlation between ZTRE and ISTB 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 (All Time) Calculated using the full available price history since Dec 19, 2024 | 0.92 |
The correlation between ZTRE and ISTB has been stable across timeframes, ranging from 0.91 to 0.92 - a consistent structural relationship.
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Return for Risk
ZTRE vs. ISTB — Risk / Return Rank
ZTRE
ISTB
ZTRE vs. ISTB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for F/M 3-Year Investment Grade Corporate Bond ETF (ZTRE) and iShares Core 1-5 Year USD Bond ETF (ISTB). 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.
| ZTRE | ISTB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.06 | ||
| Sortino ratioReturn per unit of downside risk | -0.08 | ||
| Omega ratioGain probability vs. loss probability | 1.40 | 1.40 | -0.01 |
| Calmar ratioReturn relative to maximum drawdown | 2.66 | 2.98 | -0.33 |
| Martin ratioReturn relative to average drawdown | 10.60 | 10.97 | -0.36 |
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Drawdowns
ZTRE vs. ISTB - Drawdown Comparison
The maximum ZTRE drawdown since its inception was -1.45%, smaller than the maximum ISTB drawdown of -9.34%. Use the drawdown chart below to compare losses from any high point for ZTRE and ISTB.
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Drawdown Indicators
| ZTRE | ISTB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -1.45% | -9.34% | +7.89% |
Max Drawdown (1Y)Largest decline over 1 year | -1.45% | -1.26% | -0.19% |
Max Drawdown (3Y)Largest decline over 3 years | — | -1.36% | — |
Max Drawdown (5Y)Largest decline over 5 years | — | -9.34% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -9.34% | — |
Current DrawdownCurrent decline from peak | -0.34% | -0.46% | +0.12% |
Average DrawdownAverage peak-to-trough decline | -0.20% | -1.22% | +1.02% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.36% | 0.34% | +0.02% |
Volatility
ZTRE vs. ISTB - Volatility Comparison
The current volatility for F/M 3-Year Investment Grade Corporate Bond ETF (ZTRE) is 0.59%, while iShares Core 1-5 Year USD Bond ETF (ISTB) has a volatility of 0.63%. This indicates that ZTRE experiences smaller price fluctuations and is considered to be less risky than ISTB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ZTRE | ISTB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.59% | 0.63% | -0.04% |
Volatility (6M)Calculated over the trailing 6-month period | 1.48% | 1.36% | +0.12% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.90% | 1.80% | +0.10% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.11% | 2.80% | -0.69% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.11% | 2.51% | -0.40% |
ZTRE vs. ISTB - Expense Ratio Comparison
ZTRE has a 0.15% expense ratio, which is higher than ISTB's 0.06% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
ZTRE vs. ISTB - Dividend Comparison
ZTRE's dividend yield for the trailing twelve months is around 4.22%, which matches ISTB's 4.25% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ISTB iShares Core 1-5 Year USD Bond ETF | 4.25% | 4.12% | 3.83% | 2.97% | 2.01% | 1.69% | 2.20% | 2.75% | 2.57% | 2.06% | 1.90% | 1.58% |
ZTRE F/M 3-Year Investment Grade Corporate Bond ETF | 4.22% | 4.37% | 0.39% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
With a correlation of 0.91, ZTRE and ISTB 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.
ISTB has higher volatility (0.63%) compared to ZTRE (0.59%). In terms of maximum drawdown, ZTRE dropped -1.45% vs ISTB's -9.34%.
On 1-year performance, ZTRE leads with 3.84% vs 3.73% for ISTB. On fees, ISTB is cheaper at 0.06% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, ZTRE has performed better with a 3.84% return vs 3.73%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
ISTB is cheaper with a 0.06% expense ratio, compared with 0.15% for ZTRE.
ISTB has the higher dividend yield at 4.25%, compared with 4.22% for ZTRE.
ZTRE tracks ICE 3-Year US Target Maturity Corporate Index - Benchmark TR Gross, while ISTB tracks BBG US Universal 1-5 Year Index (USD). They also come from different issuers: F/m and iShares. Their fees differ too: 0.15% for ZTRE and 0.06% for ISTB.
ISTB currently has the higher Sharpe Ratio (2.09 vs 2.03), 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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