iShares 1-3 Year Treasury Bond ETF
SHY BondUpdated: Jul 5, 2026, 21:17 UTC
Key Metrics
About This ETF
The iShares 1-3 Year Treasury Bond ETF (SHY) is a Bond ETF with an expense ratio (TER) of 0.15% and $25.4B in assets under management. The ETF currently yields 3.71% in dividends. Year-to-date, SHY has returned +0.34%.
The fund will invest at least 80% of its assets in the component securities of the underlying index and it will invest at least 90% of its assets in U.S. Treasury securities that BFA believes will help the fund track the underlying index. The underlying index measures the performance of public obligations of the U.S. Treasury that have a remaining maturity of greater than or equal to one year and less than three years.
FAQ — SHY
What is the TER of SHY (iShares 1-3 Year Treasury Bond ETF)?
SHY has a Total Expense Ratio (TER) of 0.15 % per year. That sits above the bond category median (0.15 % across 8 peer ETFs). The TER is deducted directly from the fund and lowers your effective return.
What return has SHY delivered?
Performance for SHY: YTD: +0.34 % · 3-year p.a.: +4.28 % · 5-year p.a.: +1.79 %. Over 5 years, SHY outperforms the bond category median of +0.03 % by +1.76 pp. Past performance is no guarantee of future returns.
Does SHY pay dividends?
SHY has a current dividend yield of 3.71 %. Distributing ETFs pay this out in cash; accumulating versions reinvest it inside the fund. Check the share class on your broker before buying.
Where can I buy or set up a savings plan for SHY?
SHY is available at most major brokers. For a free monthly savings plan from €1, look at Trade Republic, Scalable Capital or Flatex. The broker comparison on this site shows fees, free-savings-plan ETFs and execution exchanges side by side.
What is the iShares 1-3 Year Treasury Bond ETF?
The iShares 1-3 Year Treasury Bond ETF (SHY) holds short-dated U.S. government bonds with remaining maturities between one and three years. With around $25.1B in assets and an expense ratio of just 0.15%, it ranks among the largest and cheapest options for safety-focused investors. Because of its short duration, the fund barely reacts to interest-rate moves, which is why many investors use it as a cash-like liquidity reserve carrying higher credit quality than almost any other asset class.
Performance & Return Drivers
With short-dated bonds, the focus is on income, not price gains. SHY carries a distribution yield of 3.72%, supported by current U.S. policy rates. Its annualized three-year return stands at 4.09%, while the five-year return is 1.71% — the latter reflecting the era of ultra-low rates followed by rising yields. Year to date the fund is up 0.44%. The 52-week price range was very narrow, $82.00 to $83.20, underscoring the low rate sensitivity that short duration provides. The dominant driver remains the U.S. Federal Reserve's monetary policy.
Risk Profile
Credit risk is minimal, as the fund holds almost exclusively U.S. Treasuries. Interest-rate risk is also low thanks to the short duration: when yields rise, prices fall only slightly. The key risk for euro-area investors is currency risk, since the fund is denominated in U.S. dollars. A weaker dollar can fully erode the bond yield or push the total return negative. Additional considerations include reinvestment risk when rates fall and inflation risk, since the real return can be modest.
- USD/EUR currency risk
- Reinvestment risk when rates decline
- Inflation risk with a low real return
Who is SHY For?
SHY suits safety-focused investors who want to park capital short term, build a liquidity reserve, or dampen portfolio volatility. It also works as a counterweight to equities or as a holding pen for funds awaiting deployment. The investment horizon can be short, since price swings stay minimal.
It is less suitable for long-horizon investors seeking capital growth: equities or longer-dated bonds offer greater return potential. Euro-area investors without currency hedging should also weigh the dollar risk, which can exceed the modest interest income the fund generates.
How SHY Compares to Peer Bond ETFs
Within the bond ETF universe, SHY covers only the short end of the U.S. Treasury curve. Investors seeking longer duration — and thus more return potential but also larger price swings — can look to the iShares 7-10 Year Treasury Bond ETF (IEF) or the iShares 20+ Year Treasury Bond ETF (TLT).
- iShares Core U.S. Aggregate Bond (AGG) and Vanguard Total Bond Market (BND): broadly diversified across maturities and segments, including corporate bonds.
- iShares 7-10 Year Treasury (IEF): intermediate duration, higher rate sensitivity.
- Vanguard Total International Bond (BNDX): global and currency-hedged.
Where can I buy SHY?
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