Average Daily Volume
560K
Fund Overview
The iShares Core 1-5 Year USD Bond ETF (ISTB) is designed to provide investors with exposure to short-term U.S. dollar-denominated investment-grade bonds. The fund seeks to track the performance of the Bloomberg Barclays U.S. 1-5 Year Government/Credit Bond Index, which includes Treasury securities, government-related bonds, and corporate bonds with maturities between one and five years. ISTB offers a low-cost, diversified way to invest in short-term fixed income, making it suitable for investors seeking income with relatively lower interest rate risk compared to longer-duration bonds. The ETF is part of iShares' Core series, known for its cost efficiency and broad market coverage.
- Asset Class
-
Bond
- Industry
-
Treasury Bonds
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 4.39 %
- Currency Hedged
-
No
- Portfolio Turnover
-
38 %
- Dividend Date
-
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Why Invest in the ISTB ETF?
Potential Benefits
- Diversified exposure to short-term U.S. investment-grade bonds, reducing single-security risk.
- Lower interest rate sensitivity compared to longer-duration bond ETFs, making it less volatile in rising rate environments.
- Competitive expense ratio, enhancing net returns for investors.
- Monthly distributions provide a steady income stream.
- High liquidity due to iShares' broad market presence and tight bid-ask spreads.
Potential Risks
- Interest rate risk: While lower than long-term bonds, rising rates can still negatively impact short-term bond prices.
- Credit risk: Exposure to corporate bonds introduces the possibility of issuer defaults.
- Inflation risk: Short-term bonds may offer lower yields that could underperform inflation over time.
- Limited capital appreciation potential compared to equities or longer-duration bonds in falling rate environments.
Histogram
MACD
Signal
Base Line
RSI data unavailable or insufficient history.
RSI (14)
Overbought (70)
Oversold (30)
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2025 |
+0.5%
|
+1.0%
|
+0.4%
|
+0.8%
|
0.0%
|
+0.9%
|
+0.1%
|
+0.6%
|
-
|
-
|
-
|
-
|
| 2024 |
+0.4%
|
-0.5%
|
+0.5%
|
-0.8%
|
+1.1%
|
+0.5%
|
+1.7%
|
+1.1%
|
+1.0%
|
-1.0%
|
+0.5%
|
-0.1%
|
| 2023 |
+1.5%
|
-1.2%
|
+1.7%
|
+0.4%
|
-0.4%
|
-0.4%
|
+0.5%
|
+0.2%
|
-0.5%
|
-0.1%
|
+2.0%
|
+1.7%
|
| 2022 |
-1.1%
|
-0.8%
|
-1.8%
|
-0.9%
|
+0.3%
|
-1.2%
|
+1.2%
|
-1.5%
|
-2.0%
|
-0.1%
|
+1.8%
|
-0.1%
|
| 2021 |
0.0%
|
-0.4%
|
0.0%
|
+0.3%
|
+0.3%
|
-0.1%
|
+0.2%
|
+0.1%
|
-0.3%
|
-0.5%
|
-0.2%
|
0.0%
|
| 2020 |
+0.8%
|
+0.7%
|
-0.9%
|
+1.1%
|
+1.0%
|
+0.4%
|
+0.6%
|
+0.2%
|
-0.1%
|
0.0%
|
+0.6%
|
+0.3%
|
| 2019 |
+0.9%
|
+0.3%
|
+1.0%
|
+0.2%
|
+0.8%
|
+0.8%
|
0.0%
|
+0.9%
|
-0.1%
|
+0.3%
|
0.0%
|
+0.4%
|
| 2018 |
-0.5%
|
-0.4%
|
+0.3%
|
-0.3%
|
+0.4%
|
0.0%
|
+0.2%
|
+0.3%
|
0.0%
|
-0.1%
|
+0.3%
|
+0.9%
|
| 2017 |
+0.3%
|
+0.3%
|
0.0%
|
+0.5%
|
+0.3%
|
0.0%
|
+0.3%
|
+0.4%
|
-0.1%
|
0.0%
|
-0.3%
|
+0.1%
|
| 2016 |
+0.4%
|
+0.4%
|
+0.9%
|
+0.5%
|
-0.1%
|
+1.0%
|
+0.3%
|
-0.2%
|
+0.2%
|
-0.1%
|
-0.9%
|
+0.3%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
No holdings data available.
Related ETFs: ISTB vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
ISTB aims to replicate the performance of the Bloomberg Barclays U.S. 1-5 Year Government/Credit Bond Index, a market-cap-weighted index comprising U.S. Treasury, government-related, and investment-grade corporate bonds with maturities of 1 to 5 years. The fund employs a passive management strategy, minimizing turnover and tracking error relative to the index. Holdings are rebalanced monthly to align with index changes, ensuring consistent exposure to the short-term bond market. ISTB primarily holds physical bonds rather than derivatives, providing direct exposure to the underlying securities.
Frequently Asked Questions
What types of bonds does ISTB hold?
ISTB holds U.S. Treasuries, government-related bonds, and investment-grade corporate bonds with maturities between 1 and 5 years.
How often does ISTB pay distributions?
ISTB pays monthly distributions, providing a regular income stream to investors.
Is ISTB a good ETF for rising rate environments?
Yes, ISTB's short duration makes it less sensitive to interest rate hikes compared to longer-term bond ETFs, though it is not entirely immune to rate risk.
Does ISTB use leverage or derivatives?
No, ISTB aims to track its index through physical bond holdings rather than derivatives or leverage.
Industry Overview
The iShares Core 1-5 Year USD Bond ETF (ISTB) operates within the short-term fixed income market, which is favored by investors seeking stability and income with reduced duration risk. Short-term bonds are less sensitive to interest rate fluctuations than their long-term counterparts, making them a popular choice for conservative portfolios or as a cash alternative. The Bloomberg Barclays U.S. 1-5 Year Government/Credit Bond Index, which ISTB tracks, includes a mix of U.S. Treasuries, agency bonds, and investment-grade corporate debt, providing a balanced exposure to high-quality issuers. This segment of the bond market is particularly relevant in environments where investors prioritize capital preservation while still earning yield.
Alternative Comparison
Compared to peers like SHY (iShares 1-3 Year Treasury Bond ETF) and VGSH (Vanguard Short-Term Treasury ETF), ISTB offers broader exposure by including corporate bonds alongside Treasuries, potentially enhancing yield. However, this comes with slightly higher credit risk. SPSB (SPDR Portfolio Short Term Corporate Bond ETF) focuses exclusively on corporates, while ISTB's inclusion of government bonds provides greater diversification. ISTB's expense ratio is competitive with these alternatives, making it a cost-effective choice for short-term bond exposure.
Issuer Overview
iShares, a division of BlackRock, is the largest ETF provider globally, known for its extensive range of low-cost index-tracking funds. The iShares Core series, which includes ISTB, is designed to offer essential building blocks for long-term portfolios with a focus on diversification and cost efficiency. BlackRock's scale and expertise in fixed income markets contribute to ISTB's robust structure and liquidity.
Conclusion
ISTB is a well-rounded ETF for investors seeking short-term, investment-grade bond exposure with low costs and high liquidity. Its diversified holdings across Treasuries and corporates balance yield and risk, while its passive strategy ensures transparency and efficiency. While not immune to interest rate or credit risks, ISTB's focus on the 1-5 year segment makes it a pragmatic choice for income-oriented portfolios or as a defensive allocation in volatile markets.
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