SHY vs VXUS
iShares 1-3 Year Treasury Bond ETF vs Vanguard Total International Stock ETF
Which is better, SHY or VXUS?
Short Term Government Bond against Large Cap Blend.
VXUS has a lower expense ratio. VXUS led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SHY | VXUS |
|---|---|---|
| Expense Ratio | 0.15% | 0.05%Best |
| AUM | $26.3B | $164.9B |
| Dividend Yield | 3.63% | 2.51% |
| Holdings | 93 | 8,844 |
| YTD Return | +0.44% | +12.44%Best |
| 1Y Return | +1.43% | +18.26%Best |
| 3Y Return (annualized) | +4.14% | +21.40%Best |
| 5Y Return (annualized) | +1.82% | +9.67%Best |
| Volatility (annualized) | 1.4%Best | 15.0% |
| Max Drawdown | -6.1%Best | -39.9% |
| $10,000 over 5 years | $10,944 | $15,865Best |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Short Term Government Bond | Large Cap Blend |
| Inception | Jul 22, 2002 | Jan 26, 2011 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jan 28, 2011 to Oct 2, 2026 (15.7 years).
SHY vs VXUS growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 15.7 years both funds cover.
SHY vs VXUS Performance
iShares 1-3 Year Treasury Bond ETF (SHY) is an ETF from iShares by BlackRock (US) and Vanguard Total International Stock ETF (VXUS) is an ETF from Vanguard (US). Over the past year SHY returned +1.43% while VXUS returned +18.26%. Year to date, SHY is up 0.44% versus a gain of 12.44% for VXUS.
Over three years, SHY compounded at +4.14% per year against +21.40% for VXUS; over five years the annualized figures are +1.82% and +9.67% respectively. Across the full 16-year window we track, VXUS has the edge at +4.69% annualized vs +0.74%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 15.0% compared with 1.4% 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 -39.9% for VXUS. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.19. They move largely independently of each other.
Fees and Cost Over Time
SHY charges 0.15% per year while VXUS charges 0.05%. On a $10,000 position that is $15 vs $5 annually, a gap of $10 per year that compounds over a long holding period. On income, SHY currently yields 3.63% against 2.51% for VXUS.
Holdings Overlap
We hold position weights for 69 holdings in SHY and 8,082 in VXUS, totalling 79.4% and 89.3% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 69 positions we hold weights for in SHY and 8,082 in VXUS, against full books of 93 and 8,844.
You are not choosing between two funds in isolation.
Whichever of SHY and VXUS you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SHY or VXUS?
SHY has an expense ratio of 0.15% while VXUS charges 0.05%. VXUS is the cheaper option, by $10 a year on a $10,000 investment.
Which performed better, SHY or VXUS?
Over the past year SHY returned +1.43% vs +18.26% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), SHY annualized +0.74% vs +4.69% for VXUS. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SHY or VXUS?
VXUS has been the more volatile fund at 15.0% annualized versus 1.4% for SHY. Worst drawdown: SHY -6.1% vs VXUS -39.9%.
Should I hold both SHY and VXUS?
SHY and VXUS have a monthly-return correlation of 0.19, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, SHY or VXUS?
SHY yields 3.63% while VXUS yields 2.51%, so SHY currently pays the higher dividend yield.
Is VXUS better than SHY?
VXUS has a lower expense ratio. VXUS led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.