SHY vs VOO
iShares 1-3 Year Treasury Bond ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | SHY | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.03% | |
| AUM | $25.2B | $979.0B | |
| Dividend Yield | 3.68% | 1.09% | |
| Holdings | 91 | 509 | |
| YTD Return | +0.75% | +14.48% | |
| 1Y Return | +2.40% | +22.02% | |
| 3Y Return (annualized) | +4.30% | +21.80% | |
| 5Y Return (annualized) | +1.87% | +13.36% | |
| Volatility (annualized) | 1.5% | 14.2% | |
| Max Drawdown | -6.1% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 22, 2002 | Sep 7, 2010 |
SHY vs VOO Performance
iShares 1-3 Year Treasury Bond ETF (SHY) is a ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year SHY returned +2.40% while VOO returned +22.02%. Year to date, SHY is up 0.75% versus a gain of 14.48% for VOO.
Over three years, SHY compounded at +4.30% per year against +21.80% for VOO; over five years the annualized figures are +1.87% and +13.36% respectively. Across the full 16-year window we track, VOO has the edge at +13.61% annualized vs +0.64%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.2% compared with 1.5% for SHY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -6.1% for SHY and -34.3% for VOO. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.07. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SHY charges 0.15% per year while VOO charges 0.03%. On a $10,000 position that is $15 vs $3 annually, a gap of $12 per year that compounds over a long holding period. On income, SHY currently yields 3.68% against 1.09% for VOO.
Holdings Overlap
SHY and VOO share 0 holdings out of 579 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SHY or VOO?
SHY has an expense ratio of 0.15% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, SHY or VOO?
Over the past year SHY returned +2.40% vs +22.02% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), SHY annualized +0.64% vs +13.61% for VOO. Past performance does not guarantee future results.
Which is riskier, SHY or VOO?
VOO has been the more volatile fund at 14.2% annualized versus 1.5% for SHY. Worst drawdown: SHY -6.1% vs VOO -34.3%.
Should I hold both SHY and VOO?
SHY and VOO have a monthly-return correlation of 0.07, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SHY and VOO?
SHY and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 579 unique securities.
Which pays a higher dividend, SHY or VOO?
SHY yields 3.68% while VOO yields 1.09%, so SHY currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.