Average Daily Volume
4.52M
Fund Overview
The iShares 1-3 Year Treasury Bond ETF (SHY) is designed to track the investment results of an index composed of U.S. Treasury bonds with remaining maturities between one and three years. This ETF provides investors with exposure to short-term U.S. government debt, offering a relatively low-risk investment option within the fixed-income market. SHY is widely used by investors seeking capital preservation, income generation, and a hedge against equity market volatility. The fund is highly liquid, with a substantial asset base and tight bid-ask spreads, making it a popular choice for both institutional and individual investors.
- Asset Class
-
Bond
- Industry
-
Treasury Bonds
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 3.88 %
- Currency Hedged
-
No
- Portfolio Turnover
-
55 %
- Dividend Date
-
Why Invest in the SHY ETF?
Potential Benefits
- Provides exposure to short-term U.S. Treasury bonds, which are considered among the safest fixed-income investments.
- Offers relatively stable returns with lower interest rate risk compared to longer-duration bonds.
- High liquidity and tight bid-ask spreads make it easy to trade.
- Low expense ratio (0.15%) compared to many actively managed bond funds.
- Suitable for investors seeking capital preservation and modest income.
- Can serve as a hedge against equity market downturns due to its low correlation with stocks.
Potential Risks
- Susceptible to interest rate risk, though less so than longer-duration bonds.
- Lower yield compared to longer-term bonds or corporate debt, which may not keep pace with inflation.
- Returns may lag during periods of rising interest rates.
- Credit risk is minimal but not zero, as it depends on the U.S. government's ability to meet its obligations.
- Inflation can erode real returns over time.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+0.2%
|
+0.5%
|
-0.5%
|
+0.2%
|
+0.1%
|
+0.1%
|
+0.2%
|
+0.2%
|
-0.5%
|
+0.1%
|
-
|
-
|
| 2025 |
+0.4%
|
+0.7%
|
+0.4%
|
+0.8%
|
-0.3%
|
+0.6%
|
-0.1%
|
+0.9%
|
+0.3%
|
+0.3%
|
+0.4%
|
+0.3%
|
| 2024 |
+0.3%
|
-0.4%
|
+0.3%
|
-0.4%
|
+0.7%
|
+0.5%
|
+1.2%
|
+0.9%
|
+0.8%
|
-0.6%
|
+0.3%
|
+0.3%
|
| 2023 |
+0.8%
|
-0.8%
|
+1.6%
|
+0.2%
|
-0.4%
|
-0.5%
|
+0.3%
|
+0.4%
|
-0.1%
|
+0.3%
|
+1.1%
|
+1.1%
|
| 2022 |
-0.7%
|
-0.4%
|
-1.4%
|
-0.5%
|
+0.6%
|
-0.6%
|
+0.4%
|
-0.8%
|
-1.2%
|
-0.1%
|
+0.7%
|
+0.1%
|
| 2021 |
0.0%
|
-0.1%
|
-0.1%
|
+0.1%
|
+0.1%
|
-0.2%
|
+0.2%
|
0.0%
|
-0.1%
|
-0.3%
|
-0.1%
|
-0.2%
|
| 2020 |
+0.6%
|
+0.9%
|
+1.2%
|
+0.3%
|
-0.1%
|
0.0%
|
+0.1%
|
0.0%
|
0.0%
|
0.0%
|
0.0%
|
0.0%
|
| 2019 |
+0.3%
|
+0.1%
|
+0.6%
|
+0.2%
|
+0.7%
|
+0.5%
|
-0.1%
|
+0.8%
|
-0.1%
|
+0.3%
|
0.0%
|
+0.2%
|
| 2018 |
-0.3%
|
-0.1%
|
+0.2%
|
-0.2%
|
+0.4%
|
0.0%
|
-0.1%
|
+0.3%
|
-0.1%
|
+0.2%
|
+0.4%
|
+0.8%
|
| 2017 |
+0.1%
|
0.0%
|
+0.1%
|
+0.2%
|
+0.1%
|
-0.1%
|
+0.2%
|
+0.2%
|
-0.2%
|
-0.1%
|
-0.2%
|
0.0%
|
< -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: SHY vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
SHY tracks the ICE U.S. Treasury 1-3 Year Bond Index, which includes U.S. Treasury bonds with remaining maturities between one and three years. The index is market-cap weighted, meaning larger issuances have a greater impact on the fund's performance. SHY holds physical Treasury securities rather than using derivatives, providing direct exposure to the underlying bonds. The fund is rebalanced monthly to align with the index composition, ensuring it maintains its target duration and credit quality.
Frequently Asked Questions
What is the average duration of SHY?
SHY has an average duration of approximately 1.9 years, meaning it is moderately sensitive to interest rate changes.
Does SHY pay dividends?
Yes, SHY pays monthly dividends derived from the interest payments of its underlying Treasury bonds.
How does SHY compare to a money market fund?
SHY offers slightly higher yields than money market funds but with marginally more interest rate risk due to its longer duration.
Is SHY a good investment during rising interest rate environments?
SHY is less sensitive to rate hikes than longer-term bond ETFs, but its NAV may still decline modestly when rates rise.
Can SHY be used as a cash alternative?
Yes, many investors use SHY as a higher-yielding alternative to cash or money market funds, though it carries slightly more price volatility.
Industry Overview
The iShares 1-3 Year Treasury Bond ETF (SHY) is part of the short-term fixed-income ETF category, which focuses on U.S. government debt with maturities of one to three years. This segment is favored by conservative investors seeking stability and liquidity. Short-term Treasury ETFs like SHY are often used in cash management strategies, as a safe haven during market volatility, or as a component of a diversified bond portfolio. The U.S. Treasury market is one of the largest and most liquid in the world, backed by the full faith and credit of the U.S. government, making SHY a cornerstone for low-risk investment strategies.
Alternative Comparison
Compared to its peers like BIL (SPDR Bloomberg 1-3 Month T-Bill ETF) and VGSH (Vanguard Short-Term Treasury ETF), SHY offers a slightly longer duration, which may provide marginally higher yields but also slightly more interest rate sensitivity. BIL focuses on ultra-short-term T-bills (1-3 months), making it even less sensitive to rate changes but with lower yields. VGSH is similar to SHY in strategy but comes with Vanguard's typically lower expense ratio (0.04% vs. SHY's 0.15%). Investors choosing SHY may prioritize iShares' liquidity and market presence.
Issuer Overview
iShares, a division of BlackRock, is the largest ETF provider globally, known for its extensive lineup of low-cost index-tracking funds. With over $3 trillion in assets under management, iShares offers a wide range of ETFs covering equities, fixed income, and alternative investments. The firm is recognized for its strong track record, liquidity, and investor trust.
Conclusion
The iShares 1-3 Year Treasury Bond ETF (SHY) is a solid choice for investors seeking low-risk exposure to short-term U.S. government debt. Its focus on Treasuries with 1-3 year maturities offers a balance between yield and interest rate risk, making it suitable for capital preservation and income generation. While its yields may not outpace inflation, SHY remains a cornerstone for conservative portfolios and a reliable hedge against equity market volatility.
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