IEF vs SHY: returns, risk and drawdowns compared
iShares 7-10 Year Treasury Bond ETF against iShares 1-3 Year Treasury Bond ETF, over the same 20 years (November 2006 to October 2026) with dividends reinvested.
Data updated October 2026
From November 2006 to October 2026, IEF returned 3.1% a year and SHY 1.9% a year on average, so IEF came out ahead by 1.2% a year. IEF was the more volatile of the two (6.7% against 1.5% a year), and the deepest falls from a month-end high were 23.2% for IEF and 5.4% for SHY.
The correlation of monthly returns was 0.77: they usually moved together. Over 205 rolling 3-year periods, IEF did better in 67% and SHY in 33%.
Side by side
| IEF | SHY | |
|---|---|---|
| Annual return (CAGR) | +3.1% | +1.9% |
| Total return | +83% | +45% |
| Annual volatility | 6.7% | 1.5% |
| Maximum drawdown (month-end) | −23.2% | −5.4% |
| Worst month | −4.7% | −1.4% |
| Best month | +7.8% | +1.8% |
| Positive months | 53% | 65% |
| Best year | 2008: +17.9% | 2007: +7.3% |
| Worst year | 2022: −15.2% | 2022: −3.9% |
| 1-year return | −4.0% | +1.4% |
| 5 years, a year | −1.5% | +1.9% |
| 10 years, a year | +0.3% | +1.7% |
| Trading currency | USD | USD |
First nine rows: the same 240 months for both funds. Trailing returns: to each fund’s last close.
Growth of 10,000: IEF vs SHY
Returns by calendar year
| Year | IEF | SHY |
|---|---|---|
| 2025 | +8.0% | +5.0% |
| 2024 | −0.6% | +3.9% |
| 2023 | +3.9% | +4.2% |
| 2022 | −15.2% | −3.9% |
| 2021 | −3.3% | −0.7% |
| 2020 | +10.0% | +3.0% |
| 2019 | +8.0% | +3.4% |
| 2018 | +1.0% | +1.5% |
| 2017 | +2.5% | +0.3% |
| 2016 | +1.0% | +0.8% |
| 2015 | +1.5% | +0.4% |
| 2014 | +9.1% | +0.4% |
| 2013 | −6.1% | +0.2% |
| 2012 | +3.7% | +0.3% |
| 2011 | +15.7% | +1.4% |
| 2010 | +9.4% | +2.3% |
| 2009 | −6.6% | +0.4% |
| 2008 | +17.9% | +6.6% |
| 2007 | +10.4% | +7.3% |
How the figures are calculated
Total return in the fund’s trading currency, from end-of-day prices with dividends reinvested on the ex-date. The fund’s own ongoing charges are already reflected in its price; trading costs, taxes and currency conversion are not included. Past returns do not predict future returns.
The comparison uses only the months in which both funds have prices, so the figures cover the same period even when one fund is older.
Questions
Which has returned more, IEF or SHY?
From November 2006 to October 2026, IEF returned +3.1% a year and SHY +1.9% a year, with dividends reinvested. Over rolling 3-year periods IEF did better in 67% of cases. Past returns do not predict future returns.
Which is riskier, IEF or SHY?
Over the same months annual volatility was 6.7% for IEF and 1.5% for SHY; the deepest fall from a month-end high was 23.2% and 5.4%, and the worst single month −4.7% and −1.4%.
How correlated are IEF and SHY?
The correlation of their monthly returns was 0.77: they usually moved together. Combining them has historically given some diversification.
More comparisons
Source: MarketStack end-of-day prices, total return with dividends reinvested. Figures are historical and descriptive; they are not forecasts and not investment advice. MEDGE Capital does not recommend buying or selling any instrument. Risk disclaimer.