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 5 of 5 key metrics in this comparison. VGSH has delivered stronger 1-year price return (+1.66% vs +1.54% 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 | 37.0 | 35.0 |
| Latest closei | $57.60 | $81.24 |
| 1M returni | -0.68% | -0.70% |
| 6M returni | +0.51% | +0.48% |
| 1Y returni | +1.66% | +1.54% |
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 | $10.56K (+5.6%) started 2025-09-18 | $10.53K (+5.3%) started 2025-09-18 |
| 5Y ago | $12.94K (+29.4%) started 2021-09-20 | $12.73K (+27.3%) started 2021-09-20 |
| 10Y ago | $15.35K (+53.5%) started 2016-09-19 | $14.78K (+47.8%) started 2016-09-19 |
Hypothetical — past performance does not guarantee future results.
| Metric | VGSH | SHY |
|---|---|---|
| Expense ratioi | 0.03% | 0.15% |
| Total assets (AUM)i | $39.2B | $25.91B |
| Dividend yieldi | 3.82% | 3.63% |
| Trailing P/Ei | N/A | N/A |
| Betai | 0.05 | 0.05 |
| 52-week change | 1.66% | 1.54% |
| Metric | VGSH | SHY |
|---|---|---|
| 1Y returni | +1.66% | +1.54% |
| 6M returni | +0.51% | +0.48% |
| 1M returni | -0.68% | -0.70% |
| 1Y Sharpe ratio | -2.27 | -2.22 |
| Betai | 0.05 | 0.05 |
| Dividend yieldi | 3.82% | 3.63% |
| 5Y CAGR | +1.83% | +1.73% |
Over the past year, VGSH and SHY have moved strongly in the same direction (correlation of 0.95), 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 | +1.66% | +1.54% |
| CAGRi | +1.66% | +1.54% | |
| Volatilityi | 1.25% | 1.33% | |
| Sharpe ratioi | -2.27 | -2.22 | |
| Sortino ratioi | -2.76 | -2.73 | |
| Max drawdowni | 0.88% | 0.89% | |
| Current drawdowni | 0.74% | 0.73% | |
| Avg drawdowni | 0.17% | 0.17% | |
| Ulcer Indexi | 0.26% | 0.25% | |
| Max daily dropi | 0.29% | 0.30% | |
| Max wkly dropi | 0.43% | 0.48% | |
| 5Y | Growthi | +9.45% | +8.92% |
| CAGRi | +1.83% | +1.73% | |
| Volatilityi | 1.99% | 2.01% | |
| Sharpe ratioi | -1.34 | -1.37 | |
| Sortino ratioi | -1.85 | -1.89 | |
| Max drawdowni | 5.61% | 5.63% | |
| Current drawdowni | 0.74% | 0.73% | |
| Avg drawdowni | 1.45% | 1.49% | |
| Ulcer Indexi | 2.20% | 2.24% | |
| Max daily dropi | 0.53% | 0.51% | |
| Max wkly dropi | 1.29% | 1.26% | |
| 10Y | Growthi | +18.57% | +17.51% |
| CAGRi | +1.72% | +1.63% | |
| Volatilityi | 1.58% | 1.58% | |
| Sharpe ratioi | -1.76 | -1.82 | |
| Sortino ratioi | -2.40 | -2.48 | |
| Max drawdowni | 5.70% | 5.71% | |
| Current drawdowni | 0.74% | 0.73% | |
| Avg drawdowni | 0.87% | 0.89% | |
| 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 | $39.2B | $25.91B |
| Dividend yieldi | 3.82% | 3.63% |
- 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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