SHY vs VGSH
iShares 1-3 Year Treasury Bond ETF vs Vanguard Short-Term Treasury Index Fund ETF Shares
Last updated: 2026-04-02
iShares 1-3 Year Treasury Bond ETF (SHY) is an exchange-traded fund issued by iShares that provides exposure to short-duration U.S. Treasury bonds with low interest rate risk. It charges a low expense ratio of 0.15%. The fund offers an attractive dividend yield of 3.76%. Launched in 2002, the fund has a 24-year track record.
Vanguard Short-Term Treasury Index Fund ETF Shares (VGSH) is an exchange-traded fund that provides exposure to short-duration U.S. Treasury bonds with low interest rate risk. It charges a very low expense ratio of 0.03%. The fund offers an attractive dividend yield of 3.93%. Launched in 2009, the fund has a 17-year track record.
Quick Verdict
VGSH is significantly cheaper at 0.03% vs 0.15% expense ratio, saving you approximately $238 per $10,000 invested over 10 years. Both funds have delivered similar 1-year returns (-0.2% vs -0.3%), tracking closely.
Key Metrics
Performance Chart
Indexed to 100 at start (5-year comparison)
Performance Comparison
Fee Impact Over Time
Estimated fee cost difference assuming 8% annual returns
Risk Metrics
Based on 5 years of daily returns
Dividend Comparison
Which One Should You Choose?
Choose VGSH if...
you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.
Either works if...
you just need broad us short-term treasury exposure. Both are solid options — pick whichever your brokerage offers commission-free.