VGSH vs SHY Stock Comparison: AI Score, Valuation, Performance and Upside
VGSH and SHY both target short-term treasury bond exposure but take different paths to get there — VGSH via the Bloomberg US 1-3 Year Treasury Bond Index, and SHY via the ICE U.S. Treasury 1-3 Year Bond Index. The practical differences come down to issuer, cost structure, and the specific index rules each fund follows, since both are pursuing a similar investment outcome.
VGSH vs SHY is largely a question of which issuer and index methodology you trust more for short-term treasury bond exposure — the underlying investment case is similar, so cost, liquidity, and tracking precision tend to be the deciding factors.
VGSH holds the edge across 4 of 5 key metrics in this comparison. VGSH has delivered stronger 1-year price return (+1.49% vs +1.45% for SHY).
- want low-volatility, short-duration Treasury exposure
- prefer Vanguard's approach and fund lineup
- value very low interest-rate sensitivity
- are comfortable with lower yield than intermediate or long-duration bond funds
- want the standard, most liquid short-duration Treasury holding
- prefer iShares (BlackRock)'s approach and fund lineup
- value extremely high liquidity as the standard short-Treasury benchmark fund
- are comfortable with lower yield than intermediate or credit-focused bond funds
| Metric | VGSH | SHY |
|---|---|---|
| ETF scorei | 24.4 | 24.5 |
| Latest closei | $57.76 | $81.50 |
| 1M returni | +0.52% | +0.52% |
| 3M returni | -0.19% | -0.19% |
| 6M returni | +0.21% | +0.21% |
| 1Y returni | +1.49% | +1.45% |
The ETF score weights long-term returns and risk-adjusted performance most heavily, but still rewards low expense ratios, larger fund size, and broader diversification — so it can favor low-cost, broad, mega-cap funds over smaller thematic or actively-managed funds even when the latter have delivered stronger returns.
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | VGSH | SHY |
|---|---|---|
| 1Y ago | $10.47K (+4.7%) started 2025-11-04 | $10.45K (+4.5%) started 2025-11-04 |
| 5Y ago | $13K (+30.0%) started 2021-11-05 | $12.79K (+27.9%) started 2021-11-05 |
| 10Y ago | $15.36K (+53.6%) started 2016-11-07 | $14.79K (+47.9%) started 2016-11-07 |
Hypothetical — past performance does not guarantee future results.
| Metric | VGSH | SHY |
|---|---|---|
| Expense ratioi | 0.03% | 0.15% |
| Total assets (AUM)i | $41.19B | $27.44B |
| Dividend yieldi | 3.76% | 3.61% |
| Trailing P/Ei | N/A | N/A |
| Betai | 0.05 | 0.05 |
| 52-week change | 1.49% | 1.45% |
| Metric | VGSH | SHY |
|---|---|---|
| 1Y returni | +1.49% | +1.45% |
| 6M returni | +0.21% | +0.21% |
| 3M returni | -0.19% | -0.19% |
| 1M returni | +0.52% | +0.52% |
| 1Y Sharpe ratio | -2.21 | -2.15 |
| Betai | 0.05 | 0.05 |
| Dividend yieldi | 3.76% | 3.61% |
| 5Y CAGR | +1.92% | +1.84% |
Over the past year, VGSH and SHY have moved strongly in the same direction (correlation of 0.97), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | VGSH | SHY |
|---|---|---|---|
| 1Y | Growthi | +1.49% | +1.45% |
| CAGRi | +1.49% | +1.45% | |
| Volatilityi | 1.36% | 1.41% | |
| Sharpe ratioi | -2.21 | -2.15 | |
| Sortino ratioi | -2.70 | -2.65 | |
| Max drawdowni | 0.98% | 0.96% | |
| Current drawdowni | 0.47% | 0.41% | |
| Avg drawdowni | 0.25% | 0.25% | |
| Ulcer Indexi | 0.36% | 0.35% | |
| Max daily dropi | 0.35% | 0.30% | |
| Max wkly dropi | 0.43% | 0.48% | |
| 5Y | Growthi | +9.99% | +9.52% |
| CAGRi | +1.92% | +1.84% | |
| Volatilityi | 2.01% | 2.03% | |
| Sharpe ratioi | -1.28 | -1.31 | |
| Sortino ratioi | -1.76 | -1.80 | |
| Max drawdowni | 5.37% | 5.39% | |
| Current drawdowni | 0.47% | 0.41% | |
| Avg drawdowni | 1.36% | 1.38% | |
| Ulcer Indexi | 2.06% | 2.09% | |
| Max daily dropi | 0.53% | 0.51% | |
| Max wkly dropi | 1.29% | 1.26% | |
| 10Y | Growthi | +18.81% | +17.80% |
| CAGRi | +1.74% | +1.65% | |
| Volatilityi | 1.59% | 1.59% | |
| Sharpe ratioi | -1.73 | -1.79 | |
| Sortino ratioi | -2.36 | -2.44 | |
| Max drawdowni | 5.70% | 5.71% | |
| Current drawdowni | 0.47% | 0.41% | |
| Avg drawdowni | 0.88% | 0.90% | |
| Ulcer Indexi | 1.62% | 1.64% | |
| Max daily dropi | 0.53% | 0.51% | |
| Max wkly dropi | 1.29% | 1.26% |
| Category | VGSH | SHY |
|---|---|---|
| Fund name | Vanguard Short-Term Treasury Index Fund ETF Shares | iShares 1-3 Year Treasury Bond ETF |
| Type | ETF | ETF |
| Expense ratioi | 0.03% | 0.15% |
| Total assets (AUM)i | $41.19B | $27.44B |
| Dividend yieldi | 3.76% | 3.61% |
- Very low interest-rate sensitivity
- Pure Treasury credit quality
- Vanguard's low expense ratio
- Extremely high liquidity as the standard short-Treasury benchmark fund
- Minimal interest-rate risk
- Zero default risk given pure Treasury holdings
- Lower yield than intermediate or long-duration bond funds
- Minimal price appreciation potential even if rates fall
- Mainly a cash-alternative or ballast holding, not a growth vehicle
- Lower yield than intermediate or credit-focused bond funds
- Minimal capital-appreciation potential
- Nearly identical exposure to Vanguard's cheaper VGSH
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