# How iShares U.S. Treasury Bond ETF (GOVT) compares with the whole market and its popular alternatives

> Source: EasyCompare research, https://easycompare.io/research/govt
> Data as of October 20, 2026. Total returns include reinvested dividends. Past performance does not predict future results; nothing here is investment advice.

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on GOVT alone. It places GOVT (iShares U.S. Treasury Bond ETF) against 20+ popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where GOVT stands in the market, and of the alternatives worth a closer look.

Period covered: GOVT's full trading record, from February 2012 through September 2026. The crash tests reach back to 2000 using older funds and the S&P 500. All returns include reinvested dividends. Data as of October 20, 2026.

## Key findings

- **Right now:** Over the past 6 months, GOVT fell 2.2% while the S&P 500 rose 9.1%. Its similar funds split over the past 6 months: BIL (State Street SPDR Bloomberg 1-3 Month T-Bill ETF) rose 1.8%, while TLT (iShares 20+ Year Treasury Bond ETF) fell 6.1%.
- **Fund or market?:** GOVT fell 1.3% over the past 3 months, in line with the US bond market ETF AGG (iShares Core U.S. Aggregate Bond ETF), which fell 1.7%. The S&P 500 rose 3.9%.
- **Long term:** GOVT turned $10,000 into $10,700 over the past decade, against $42,100 in the S&P 500. GOVT's 10-year return of 7.1% puts it behind 96% of the ETFs with at least $100 million in assets with that much history. The S&P 500 returned 321%.
- **In a crash:** Across four sell-offs, GOVT has typically lost about 22% as much as the S&P 500. The 2022 bear market took 13.0% off GOVT, against 24.5% for the S&P 500. That was more than SGOV (iShares 0-3 Month Treasury Bond ETF, 0.0%) but less than TLT (iShares 20+ Year Treasury Bond ETF, 30.0%).
- **Diversification:** GOVT is some diversification, but not a hedge: a correlation of 0.52 with the S&P 500 over 5 years and 0.52 with the total US market, less closely than 85% of ETFs with at least $100 million in assets. GOVT now moves more with the S&P 500: a correlation of 0.52 over the past 5 years, up from -0.32 in the 5 years before.
- **Better options:** Among GOVT's popular alternatives, SGOV (iShares 0-3 Month Treasury Bond ETF) and VGSH (Vanguard Short-Term Treasury ETF) earned more than GOVT with less volatility over the past 5 years. SGOV returned 3.8% a year at 0.3% volatility, against a loss of 0.7% a year at 6.0%.

## How much would $10,000 in GOVT have grown?

This chart tracks a hypothetical $10,000 investment in GOVT over the past 14 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of GOVT over the same span and GOVT's popular alternatives, among those that traded for the entire period.

- $10,000 invested in GOVT at the end of September 2012 would have grown to $11,343 by September 2026, less than the $67,346 it would have become in SPY, an S&P 500 fund.
- All eight other investments on the chart ended ahead of GOVT, and LQD finished highest, at $13,766.

## GOVT at a glance

This section summarizes the key facts about the fund, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout.

- GOVT's deepest decline since it began trading in 2012 was 19.1%, from August 2020 to October 2023. It has not yet climbed back to that peak.
- Over 13 full calendar years, GOVT's best was 2019, when it returned 7.4%, and its worst was 2022, when it lost 13.4%. It lost money in three of those years.
- GOVT is 8.5% below its all-time high.

- Type: ETF, Bonds (Asset Management)
- Trading since: February 24, 2012
- Assets: $42B
- Expense ratio: 0.05%
- Volatility (5 years): 6.0%; Sharpe ratio: -0.09
- Worst decline ever: −19.1%, from August 4, 2020 to October 19, 2023; not yet back at its high

| Period | GOVT total return |
| --- | --- |
| 1 month | −0.2% |
| 3 months | −1.3% |
| 6 months | −2.2% |
| year to date | −1.5% |
| 1 year | −1.8% |
| 3 years | +12.7% |
| 5 years | −3.5% |
| 10 years | +7.1% |

## GOVT against the whole market

Where GOVT ranks among every stock and fund, and what across the market has done better.

### How does GOVT rank among all ETFs?

This section ranks GOVT on return, volatility, risk-adjusted return and worst decline against every ETF worth at least $100 million with enough history.

- GOVT's 10-year return ranks in the bottom 4% of the 958 ETFs with at least $100 million in assets with 10 years of history.
- GOVT's worst decline of the past 10 years ranks in the top 10% of the 951 ETFs with at least $100 million in assets, where the top fell the least.

| Measure | GOVT | Rank |
| --- | --- | --- |
| 1-year return | −1.8% | 2,145 of 2,485 (top 87%) |
| 3-year return | +12.7% | 1,832 of 1,949 (top 94%) |
| 5-year return | −3.5% | 1,440 of 1,560 (top 93%) |
| 10-year return | +7.1% | 919 of 958 (top 96%) |
| Volatility, 5 years | 6.0% | 181 of 1,560 (top 12%) |
| Sharpe ratio, 5 years | -0.09 | 1,491 of 1,560 (top 96%) |
| Worst decline, past 10 years | −19.1% | 96 of 951 (top 11%) |

### What has beaten GOVT on both return and risk?

Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer).

- 100 ETFs worth at least $500 million sit in the green region: each earned more than GOVT over the past 5 years with smaller price swings. That is 3% of the 3,633 screened.
- Among those with at least half GOVT's swings, BALT has the best return for its risk: 6.3% a year at 3.3% volatility, 44% less than GOVT's 6.0%, and a Sharpe ratio (return above cash per unit of volatility) of 1.85 against -0.09 for GOVT.
- Among GOVT's popular alternatives, BIL, SGOV and SHV are in the region. BIL earned 3.7% a year against a loss of 0.7% a year for GOVT, at 0.3% volatility, 96% less than GOVT's 6.0%.

### Is there a better investment than GOVT?

The table below lists investments that beat GOVT over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes, and, for funds, the same exposure at a lower expense ratio.

- Among GOVT's popular alternatives, SGOV and VGSH earned more than GOVT with less volatility over the past 5 years. SGOV returned 3.8% a year at 0.3% volatility, against a loss of 0.7% a year at 6.0%.
- Looking beyond its popular alternatives, NEAR (short-term bonds) and SPSB (investment grade bonds) earned more than GOVT with less volatility over the past 5 years. NEAR returned 3.9% a year at 1.4% volatility, against a loss of 0.7% a year at 6.0%.
- Across the whole market, 100 of the 3,633 stocks and funds worth at least $500 million earned more than GOVT with less volatility over the past 5 years, among them SGOV, VTIP and BSV.

The 15 strongest of 100 investments that beat GOVT over the past 5 years, out of 3,633 stocks and funds worth at least $500 million.

| Investment | Group | Annual return (5 years) | Volatility | Sharpe | Worst decline (10 years) | 10Y return | Correlation with GOVT | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| GOVT: iShares U.S. Treasury Bond ETF (this page) |  | −0.7% | 6.0% | -0.09 | −19.1% | +7.1% |  |  |
| JAAA: Janus Henderson AAA CLO ETF | CLO Bonds | +5.1% | 1.7% | 2.98 | −2.6% | — | 0.21 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [SGOV](https://easycompare.io/research/sgov): iShares 0-3 Month Treasury Bond ETF | Treasury Bonds | +3.8% | 0.3% | 13.25 | −0.3% | — | 0.31 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| BALT: Innovator Defined Wealth Shield ETF | Crypto | +6.3% | 3.3% | 1.85 | −4.9% | — | 0.53 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| VRIG: Invesco Variable Rate Investment Grade ETF | Bonds | +4.7% | 1.3% | 3.51 | −13.1% | +40.5% | 0.24 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| FLOT: iShares Floating Rate Bond ETF | Floating Rate Bonds | +4.5% | 1.8% | 2.48 | −13.5% | +35.9% | 0.16 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| VNLA: Janus Henderson Short Duration Income ETF | Bonds | +4.0% | 1.1% | 3.77 | −4.5% | — | 0.63 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| FLDR: Fidelity Low Duration Bond Factor ETF | Bonds | +3.9% | 1.2% | 3.09 | −12.2% | — | 0.77 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| NEAR: iShares Short Duration Bond Active ETF | Short-Term Bonds | +3.9% | 1.4% | 2.71 | −9.6% | +31.8% | 0.70 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| SUB: iShares Short-Term National Muni Bond ETF | Municipal Bonds | +1.4% | 1.7% | 0.85 | −9.4% | +15.6% | 0.79 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| USTB: VictoryShares Short-Term Bond ETF | Bonds | +3.6% | 2.0% | 1.73 | −5.3% | — | 0.84 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| TBUX: T. Rowe Price Ultra Short-Term Bond ETF | Bonds | +4.1% | 1.1% | 3.85 | −1.8% | — | 0.62 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [VTIP](https://easycompare.io/research/vtip): Vanguard Short-Term Inflation-Protected Securities ETF | Treasury Bonds | +2.7% | 2.9% | 0.94 | −6.3% | +32.7% | 0.68 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| RAVI: Northern Trust Ultra-Short Fixed Income ETF | Bonds | +3.8% | 1.4% | 2.61 | −3.7% | +30.8% | 0.52 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| MEAR: iShares Short Maturity Municipal Bond Active ETF | Bonds | +2.4% | 1.0% | 2.37 | −2.7% | +19.3% | 0.68 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| SPSB: State Street SPDR Portfolio Short Term Corporate Bond ETF | Investment Grade Bonds | +2.8% | 2.0% | 1.38 | −11.8% | +29.2% | 0.88 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |

## GOVT against its popular alternatives

The investments people most often weigh against GOVT, compared period by period and year by year.

### How do GOVT's risk and return compare with its alternatives?

This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings.

- Seven of the 17 popular alternatives, led by BIL, SHV and SPTS, were both more rewarding and calmer than GOVT over the past 5 years, earning a higher annual return with lower volatility.
- Over the past 5 years, GOVT returned -0.7% a year, less than the S&P 500's 12.7%, with lower volatility (6.0% against 17.1%).

### Has GOVT consistently beaten its popular alternatives?

This section compares GOVT with the investments people most often weigh against it, checking each one over eight periods from one month to ten years.

- Eight of the 24 popular alternatives, led by SHV, BIL and SCHO, outperformed GOVT in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- SHV and BIL outperformed GOVT in every long-term period and in all but one short-term period, the most consistent record in the group.
- BIL, SGOV and SHV earned more for the risk they took than GOVT (a higher Sharpe ratio) and fell less in their worst decline of the past 10 years.

| Investment | 1Y return | 3Y return | 5Y return | 10Y return | Periods ahead of GOVT | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| GOVT: iShares U.S. Treasury Bond ETF (this page) | −1.8% | +12.7% | −3.5% | +7.1% |  |  | -0.09 |
| SHV: iShares Trust iShares 0-1 Year Treasury Bond ETF | +3.6% | +13.9% | +19.4% | +26.1% | 5/5 short-term, 3/3 long-term | all-weather | 12.09 |
| [BIL](https://easycompare.io/research/bil): State Street SPDR Bloomberg 1-3 Month T-Bill ETF | +3.7% | +13.9% | +19.9% | +25.8% | 5/5 short-term, 3/3 long-term | all-weather | 14.05 |
| SCHO: Schwab Short-Term U.S. Treasury ETF | +1.5% | +12.8% | +10.1% | +18.9% | 5/5 short-term, 2/3 long-term | consistent | 0.96 |
| VGSH: Vanguard Short-Term Treasury ETF | +1.2% | +12.5% | +9.9% | +18.8% | 5/5 short-term, 2/3 long-term | consistent | 0.95 |
| SPTS: State Street SPDR Portfolio Short Term Treasury ETF | +1.6% | +12.9% | +10.2% | +18.2% | 5/5 short-term, 2/3 long-term | consistent | 0.97 |
| SHY: iShares 1-3 Year Treasury Bond ETF | +1.1% | +12.1% | +9.3% | +17.7% | 5/5 short-term, 2/3 long-term | consistent | 0.89 |
| BILS: State Street SPDR Bloomberg 3-12 Month T-Bill ETF | +3.6% | +13.9% | +19.2% | — | 5/5 short-term, 2/3 long-term | consistent | 11.25 |
| [SGOV](https://easycompare.io/research/sgov): iShares 0-3 Month Treasury Bond ETF | +3.4% | +13.8% | +20.3% | — | 5/5 short-term, 2/3 long-term | consistent | 13.25 |
| TIP: iShares TIPS Bond ETF | −1.5% | +13.3% | −0.3% | +23.5% | 1/5 short-term, 3/3 long-term |  | 0.02 |
| [AGG](https://easycompare.io/research/agg): iShares Core U.S. Aggregate Bond ETF | −1.9% | +16.2% | −1.5% | +13.3% | 0/5 short-term, 3/3 long-term |  | -0.02 |
| [BND](https://easycompare.io/research/bnd): Vanguard Total Bond Market ETF | −2.1% | +15.7% | −1.8% | +13.2% | 0/5 short-term, 3/3 long-term |  | -0.03 |
| MBB: iShares MBS ETF | −1.9% | +18.5% | −0.8% | +9.5% | 0/5 short-term, 3/3 long-term |  | 0.01 |
| LQD: iShares iBoxx $ Investment Grade Corporate Bond ETF | −3.9% | +19.7% | −4.3% | +20.5% | 0/5 short-term, 2/3 long-term |  | -0.06 |
| IEI: iShares 3-7 Year Treasury Bond ETF | −1.9% | +12.3% | +0.6% | +11.2% | 0/5 short-term, 2/3 long-term |  | 0.05 |
| SCHR: Schwab Intermediate-Term U.S. Treasury ETF | −1.9% | +13.1% | −0.5% | +10.8% | 0/5 short-term, 2/3 long-term |  | 0.01 |
| [VGIT](https://easycompare.io/research/vgit): Vanguard Intermediate-Term Treasury ETF | −2.3% | +12.6% | −0.7% | +10.5% | 0/5 short-term, 2/3 long-term |  | 0.00 |
| [IEF](https://easycompare.io/research/ief): iShares 7-10 Year Treasury Bond ETF | −4.1% | +12.4% | −8.0% | +3.0% | 0/5 short-term, 0/3 long-term |  | -0.18 |
| SPTL: State Street SPDR Portfolio Long Term Treasury ETF | −7.3% | +11.8% | −28.8% | −15.0% | 0/5 short-term, 0/3 long-term |  | -0.40 |
| VGLT: Vanguard Long-Term Treasury ETF | −7.7% | +11.3% | −29.0% | −15.2% | 0/5 short-term, 0/3 long-term |  | -0.41 |
| [TLT](https://easycompare.io/research/tlt): iShares 20+ Year Treasury Bond ETF | −8.8% | +9.0% | −33.1% | −20.1% | 0/5 short-term, 0/3 long-term |  | -0.44 |
| EDV: Vanguard Extended Duration Treasury ETF | −13.8% | +5.0% | −47.4% | −34.3% | 0/5 short-term, 0/3 long-term |  | -0.49 |
| ZROZ: PIMCO 25+ Year Zero Coupon U.S. Treasury Index Exchange-Traded Fund | −14.8% | −0.1% | −52.2% | −39.6% | 0/5 short-term, 0/3 long-term |  | -0.50 |
| GOVZ: iShares 25+ Year Treasury STRIPS Bond ETF | −15.0% | 0.0% | −51.9% | — | 0/5 short-term, 0/3 long-term |  | -0.50 |
| SCHQ: Schwab Long-Term U.S. Treasury ETF | −7.3% | +11.9% | −28.7% | — | 0/5 short-term, 0/3 long-term |  | -0.40 |

### How did GOVT do year by year?

This table shows each investment's total return in every full calendar year since 2013, along with where GOVT ranked among its popular alternatives each year.

- GOVT finished ahead of the S&P 500 in two of its 13 full calendar years, and behind it in each of the last three.
- Among its popular alternatives, LQD came out ahead of GOVT most often, in eight of the 13 years both traded.
- Ranked against its popular alternatives each year, GOVT finished in the top quarter in no of 13 years and in the bottom quarter in two. In 2025, it ranked 16 of 18.

| Year | GOVT | SPY |
| --- | --- | --- |
| 2025 | +3.8% | +17.7% |
| 2024 | +3.0% | +24.9% |
| 2023 | +4.2% | +26.2% |
| 2022 | −13.4% | −18.2% |
| 2021 | −1.1% | +28.7% |
| 2020 | +7.3% | +18.3% |
| 2019 | +7.3% | +31.2% |
| 2018 | +0.3% | −4.6% |
| 2017 | +2.2% | +21.7% |
| 2016 | +0.8% | +12.0% |

## Risk and diversification

How GOVT has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.

### What were GOVT's worst declines?

A drawdown is the decline from a peak to the lowest point before a new high.

- Not every decline was the market's doing: GOVT fell 19.1% from August 2020 to October 2023, while the S&P 500 rose 35.6%.
- The slowest recovery came after GOVT fell 5.9% from July to December 2016; it did not regain that peak until March 2019, two years later.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −19.1% | August 4, 2020 | October 19, 2023 | not yet | +35.6% | 2022 bear market |
| −5.9% | July 8, 2016 | December 15, 2016 | March 27, 2019 | +7.2% |  |

### How did GOVT do in stock market crashes?

This section measures how far GOVT, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000.

- GOVT fell less than the S&P 500 in all six crashes it has traded through. The clearest case was the Covid crash, when GOVT fell 4.6% and the S&P 500 fell 33.7%.
- Among its popular alternatives, SHV held up best, falling less than GOVT in four of the six crashes they both traded through.
- GOVT began trading after the 2008 financial crisis, but 11 of its popular alternatives lived through it. The mildest fall among them was SHV's 0.4%, against 55.2% for the S&P 500.

| Crash | Dates | GOVT fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | not trading | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | not trading | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | not trading | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | not trading | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −2.1% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −0.3% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −0.9% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −4.6% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −13.0% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | 0.0% | −3.4% |

### How closely does GOVT move with the S&P 500?

Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell.

- Over the past 10 years, GOVT captured 6% of the S&P 500's gains in rising months and 8% of its losses in falling months, with a beta of 0.06. Its share of the market's losses was slightly larger than its share of the gains.
- Only IEI, SCHR and TIP had a higher capture ratio (upside capture divided by downside capture) than GOVT's 0.71, out of 12 popular alternatives with the same record.
- SHV took just -5% of the S&P 500's losses, against 8% for GOVT, while still keeping 5% of its gains.

Measured over the past 10 years of monthly returns against SPY.

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| GOVT: iShares U.S. Treasury Bond ETF (this page) | 6.0% | 8.0% | 0.06 |
| SHV: iShares Trust iShares 0-1 Year Treasury Bond ETF | 5.0% | −5.0% | 0.00 |
| [BIL](https://easycompare.io/research/bil): State Street SPDR Bloomberg 1-3 Month T-Bill ETF | 5.0% | −5.0% | 0.00 |
| SCHO: Schwab Short-Term U.S. Treasury ETF | 5.0% | −1.0% | 0.01 |
| SPTS: State Street SPDR Portfolio Short Term Treasury ETF | 5.0% | −1.0% | 0.01 |
| SHY: iShares 1-3 Year Treasury Bond ETF | 5.0% | −1.0% | 0.01 |
| TIP: iShares TIPS Bond ETF | 15.0% | 17.0% | 0.18 |
| [AGG](https://easycompare.io/research/agg): iShares Core U.S. Aggregate Bond ETF | 12.0% | 17.0% | 0.14 |
| MBB: iShares MBS ETF | 13.0% | 21.0% | 0.14 |
| LQD: iShares iBoxx $ Investment Grade Corporate Bond ETF | 25.0% | 39.0% | 0.33 |
| IEI: iShares 3-7 Year Treasury Bond ETF | 6.0% | 6.0% | 0.04 |
| SCHR: Schwab Intermediate-Term U.S. Treasury ETF | 6.0% | 7.0% | 0.05 |
| [IEF](https://easycompare.io/research/ief): iShares 7-10 Year Treasury Bond ETF | 7.0% | 14.0% | 0.08 |
| SPTL: State Street SPDR Portfolio Long Term Treasury ETF | 7.0% | 28.0% | 0.15 |
| VGLT: Vanguard Long-Term Treasury ETF | 7.0% | 29.0% | 0.15 |
| [TLT](https://easycompare.io/research/tlt): iShares 20+ Year Treasury Bond ETF | 6.0% | 32.0% | 0.16 |
| EDV: Vanguard Extended Duration Treasury ETF | 5.0% | 46.0% | 0.22 |
| ZROZ: PIMCO 25+ Year Zero Coupon U.S. Treasury Index Exchange-Traded Fund | 4.0% | 50.0% | 0.24 |

### What diversifies GOVT?

Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions).

- XLE made money in three of the three calendar years in which GOVT lost money.
- Among large ETFs, LVHI, DXJ and EMLP have moved largely independently of GOVT over the past 5 years, with correlations of 0.45 or lower, and each still earned a positive 5-year return.
- Moving a fifth of the money in GOVT into LVHI would have cut the portfolio's volatility by 1% over the past 5 years and raised its annual return (-1.1% for GOVT alone, +2.3% for the mix).

| Investment | Correlation with GOVT | 5Y return | Volatility | Sharpe | Rose in GOVT's 3 down years |
| --- | --- | --- | --- | --- | --- |
| LVHI: Franklin International Low Volatility High Dividend Index ETF | 0.45 | +119% | 11.1% | 1.48 | 2 of 3 |
| DXJ: WisdomTree Japan Hedged Equity Fund | 0.20 | +225% | 19.1% | 1.34 | 3 of 3 |
| EMLP: First Trust North American Energy Infrastructure Fund | 0.35 | +101% | 14.5% | 1.04 | 3 of 3 |
| HDV: iShares Core High Dividend ETF | 0.38 | +83.3% | 13.0% | 1.00 | 3 of 3 |
| [SMH](https://easycompare.io/research/smh): VanEck Semiconductor ETF | 0.46 | +323% | 36.9% | 0.97 | 2 of 3 |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | 0.39 | +126% | 18.9% | 0.96 | 0 of 3 |
| SPMO: Invesco S&P 500 Momentum ETF | 0.33 | +136% | 20.8% | 0.93 | 1 of 3 |
| [XLE](https://easycompare.io/research/xle): State Street Energy Select Sector SPDR ETF | -0.03 | +177% | 25.5% | 0.93 | 3 of 3 |

## Common questions

### What was GOVT's worst drawdown?

GOVT's deepest decline since it began trading in 2012 was 19.1%, from August 2020 to October 2023. It has not yet climbed back to that peak. Because GOVT launched in February 2012, that record does not include the dot-com bust, the 2008 financial crisis or two other sell-offs.

### What were GOVT's best and worst years?

Over 13 full calendar years, GOVT's best year was 2019, when it returned 7.4%. Its worst was 2022, with a return of -13.4%.

### Is there a better investment than GOVT?

Among GOVT's popular alternatives, SGOV and VGSH earned more than GOVT with less volatility over the past 5 years. SGOV returned 3.8% a year at 0.3% volatility, against a loss of 0.7% a year at 6.0%. Looking beyond its popular alternatives, NEAR (short-term bonds) and SPSB (investment grade bonds) earned more than GOVT with less volatility over the past 5 years. NEAR returned 3.9% a year at 1.4% volatility, against a loss of 0.7% a year at 6.0%.

### Is GOVT more volatile than the S&P 500?

No. GOVT's volatility over the past 5 years was 6.0%, 35% of the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, GOVT's return lands within 6.0% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.

### What is GOVT's Sharpe ratio?

GOVT's Sharpe ratio over the past 5 years was -0.09, against 0.79 for the S&P 500, so GOVT earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.

### How correlated is GOVT with the S&P 500?

Over the past 5 years, GOVT's monthly returns had a correlation of 0.52 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They often move together: some diversification next to an index fund, but not a cushion. In the table, the correlation column measures each option against GOVT instead: the lower it is, the more that option would diversify a GOVT holding.

### What are the best alternatives to GOVT?

Of the 24 popular alternatives we compared, eight outperformed GOVT in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: SHV, BIL and SCHO.

### Did GOVT outperform the S&P 500?

GOVT finished ahead of the S&P 500 (SPY) in two of 13 full calendar years. In 2025, it returned +3.8%, against +17.7% for the index.

### How did GOVT do in stock market crashes?

GOVT fell less than the S&P 500 (SPY) in six of the six major crashes it has traded through, and further in no. The clearest case was the Covid crash, when GOVT fell 4.6% and the S&P 500 fell 33.7%.

### What diversifies GOVT?

These had a low correlation with GOVT over the past 5 years and still earned a positive 5-year return: among large ETFs, LVHI (correlation 0.45), DXJ (correlation 0.20) and EMLP (correlation 0.35); among large stocks, CAH (correlation 0.19), CLS (correlation 0.01) and FIX (correlation 0.13). A correlation near zero means the two have moved largely independently.

## More research

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## Explore further

- Full page with charts: https://easycompare.io/research/govt
- All research pages: https://easycompare.io/llms.txt
- Compare the entire market against GOVT live: https://betterthanspy.com/?b=GOVT&utm_source=easycompare&utm_medium=research