SHY vs VTI
iShares 1-3 Year Treasury Bond ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | SHY | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.03% | |
| AUM | $25.5B | $666.9B | |
| Dividend Yield | 3.65% | 1.07% | |
| Holdings | 91 | 3,543 | |
| YTD Return | +1.02% | +13.14% | |
| 1Y Return | +2.83% | +22.35% | |
| 3Y Return (annualized) | +4.40% | +21.83% | |
| 5Y Return (annualized) | +1.93% | +12.01% | |
| Volatility (annualized) | 1.5% | 15.3% | |
| Max Drawdown | -6.1% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 22, 2002 | May 24, 2001 |
SHY vs VTI Performance
iShares 1-3 Year Treasury Bond ETF (SHY) is a ETF from iShares by BlackRock (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year SHY returned +2.83% while VTI returned +22.35%. Year to date, SHY is up 1.02% versus a gain of 13.14% for VTI.
Over three years, SHY compounded at +4.40% per year against +21.83% for VTI; over five years the annualized figures are +1.93% and +12.01% respectively. Across the full 24-year window we track, VTI has the edge at +8.09% annualized vs +0.65%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -56.6% for VTI. 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 -0.10. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SHY charges 0.15% per year while VTI 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 3.65% against 1.07% for VTI.
Holdings Overlap
SHY and VTI share 0 holdings out of 2857 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 VTI?
SHY has an expense ratio of 0.15% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, SHY or VTI?
Over the past year SHY returned +2.83% vs +22.35% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (24 years), SHY annualized +0.65% vs +8.09% for VTI. Past performance does not guarantee future results.
Which is riskier, SHY or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 1.5% for SHY. Worst drawdown: SHY -6.1% vs VTI -56.6%.
Should I hold both SHY and VTI?
SHY and VTI have a monthly-return correlation of -0.10, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SHY and VTI?
SHY and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2857 unique securities.
Which pays a higher dividend, SHY or VTI?
SHY yields 3.65% while VTI yields 1.07%, 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.