At a glance
ICSH charges 0.08% a year, below the 0.19% average of the 7 funds most like it (the cheapest of 8). It has $8.14B in assets, the 3rd largest of that group; it paid 4.12% of its price in distributions over the past 12 months, monthly. Over the past year it returned +3.5% with distributions reinvested, 3rd of those 8 funds; over three years it returned +4.9% a year. At its worst it fell 3.9% in the 2020 crash (S&P 500: 33.7%) and 0.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 2 months and 4 months after the lows. Its ten largest positions make up 9.5% of the fund, out of 259 in all.
The short version
iShares Ultra Short-Term Bond Active ETF (ICSH) is an actively managed BlackRock fund. It holds investment-grade bonds and other debt that mostly matures in three years or less, and it aims for income while preserving capital. Its 0.08% expense ratio is the lowest of the eight similar ultra-short funds compared here, which average 0.19%. It is not a money market fund, so its share price can move, though it has moved only slightly so far.
Price history
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ICSH +3.5% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| ICSH official prospectus, to Dec 31, 2025 | — | +4.88% | — | +3.40% | +2.68% | — |
| ICE BofA US Broad Market Index index, same period | — | +7.15% | — | -0.42% | +2.01% | — |
| ICSH price data to Oct 27, 2026 | +2.7% | +3.5% | +4.9% | +3.9% | +2.9% | +2.3% |
- Over the year to Oct 27, 2026, ICSH returned +3.5%, 3rd of 8 among similar funds.
- Its 5-year annualized return was +3.9% and its 10-year +2.9%.
- In the 2020 COVID crash it fell 3.9% and regained its old high 1.6 months after the low.
- Its worst full calendar year was 2014 (+0.1%); its best was 2023 (+5.6%).
- The deepest fall in its price history was 3.9% (Mar 9, 2020 to Mar 23, 2020), recovered by May 11, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +2.8% | — |
| 2025 | +5.0% | +4.88% |
| 2024 | +5.5% | +5.56% |
| 2023 | +5.6% | +5.59% |
| 2022 | +1.0% | +0.95% |
| 2021 | +0.2% | +0.16% |
| 2020 | +1.6% | +1.63% |
| 2019 | +3.2% | +3.18% |
| 2018 | +2.3% | +2.26% |
| 2017 | +1.6% | +1.53% |
| 2016 | +1.3% | +1.19% |
| 2015 | +0.2% | — |
| 2014 | +0.1% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 3.6% over that stretch · deepest drop along the way 3.9%, back to its old high 1.6 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 0% over that stretch · deepest drop along the way 0.6% |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.5200 | |
| 2025 | $2.3200 | -12.1% |
| 2024 | $2.6400 | +9.1% |
| 2023 | $2.4200 | +191.6% |
| 2022 | $0.8300 | +245.8% |
| 2021 | $0.2400 | -60.7% |
| 2020 | $0.6100 | -53.4% |
| 2019 | $1.3100 | +19.1% |
| 2018 | $1.1000 | +64.2% |
| 2017 | $0.6700 | +52.3% |
| 2016 | $0.4400 | +63.0% |
| 2015 | $0.2700 | +35.0% |
| 2014 | $0.2000 |
What's inside
As of Jul 31, 2026, the fund held 259 securities; the ten largest made up 9.49% of assets, and 40.26% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| MIZUHO SECURITIES USA LLC RA | 1.60% | |
| CITIGROUP GLOBAL MARKETS INC RA | 1.34% | |
| GOLDMAN SACHS & CO LLC RA | 1.33% | |
| WELLS FARGO SECURITIES LLC RA | 1.11% | |
| BOFA SECURITIES INC RA | 0.77% | |
| NORTHWESTERN MUTUAL GLBL Bonds and notes | 0.70% | |
| TOYOTA MOTOR CREDIT CORP Bonds and notes | 0.68% | |
| PACIFIC LIFE GF II Bonds and notes | 0.66% | |
| SALESFORCE INC Bonds and notes | 0.65% | |
| NEW YORK LIFE GLOBAL FDG Bonds and notes | 0.65% | |
| MORGAN STANLEY PVT BANK Bonds and notes | 0.65% | |
| HONEYWELL AEROSPACE INC Bonds and notes | 0.65% | |
| ATHENE GLOBAL FUNDING Bonds and notes | 0.64% | |
| MASSMUTUAL GLOBAL FUNDIN Bonds and notes | 0.60% | |
| UBS AG STAMFORD CT Bonds and notes | 0.60% |
By country
United States 50.56%Australia 2.48%Netherlands 2.19%Japan 1.51%United Kingdom 1.48%By issuer
Companies 58.18%US Treasury 2.42%Municipalities 0.29%The bonds mature in 1.8 years on average (weighted by size), with an average coupon of 4.29%.
Source: N-PORT holdings report as of Jul 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors added a net $870.6M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.31%, +0.26%, +0.30%.
How it works
ICSH does not track an index. BlackRock's managers pick the holdings themselves. Under normal conditions, at least 80% of net assets goes into US dollar investment-grade debt. That means bonds rated BBB- or higher by S&P or Fitch, or Baa3 or higher by Moody's. Most holdings mature in three years or less. The managers aim to keep effective duration at one year or less. Effective duration measures how much prices move when interest rates change.
The fund can buy corporate bonds, government and agency debt, asset-backed and mortgage-backed securities, municipal bonds, money market instruments and repurchase agreements. A repurchase agreement is a short-term loan backed by collateral. The fund puts a significant share of its money in debt from banks, broker-dealers and insurers. As of July 31, 2026, the largest positions were repurchase agreements with Mizuho Securities, Citigroup, Goldman Sachs and Wells Fargo. Next came notes from Northwestern Mutual Global Funding, Toyota Motor Credit and Pacific Life Global Funding II. No position was larger than 1.6%, and the top 10 made up about 9.5% of the fund.
The fund has no fixed rebalancing schedule. Holdings change as the managers trade, and the prospectus filed February 23, 2026 shows 49% portfolio turnover. Shares are generally created and redeemed for cash, which can force sales at bad times and lead to taxable gains. The fund may lend out securities worth up to one-third of its total assets. It does not try to keep a $1.00 share price.
What it really costs
- ICSH charges 0.08% a year, versus an average of 0.19% for the similar funds below (1st of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $8 in the first year and $103 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| ICSH | $8 | $26 | $45 | $103 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
Its short maturities and investment-grade holdings have kept price swings small, so it fits as a reserve for money needed soon, not as a source of growth.
ICSH launched in December 2013, so it has no record from 2008. In the 2020 COVID crash it fell 3.9% between March 9 and March 23, its deepest drop, and recovered by May 11, 2020. In 2022 it dipped 0.6% and was back by October 27. Its weakest calendar year, 2014, still gained 0.1%. That history suggests shares sold in a bad year would likely not be sold at a deep loss. The trailing yield was 4.12% as of October 27, 2026, paid monthly. That income will shrink if short-term rates fall. Under the SEC's $10,000 example, costs come to about $8 in year one and $103 over 10 years.
The trade-off is modest growth: it averaged 2.68% a year over the 10 years to December 31, 2025. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Retirees holding money for the next year or two of spending who accept small price moves in exchange for monthly income, 4.12% trailing as of October 27, 2026.
- Cost-focused investors: its 0.08% expense ratio is the lowest of eight similar ultra-short bond funds, which average 0.19%.
- Investors comfortable with spread-out investment-grade corporate and bank debt, with no single position above 1.6% as of July 31, 2026.
Look elsewhere if
- Anyone who needs a fixed $1.00 share price: ICSH is not a money market fund and fell 3.9% in March 2020.
- Investors seeking long-term growth: it returned 2.68% a year on average over the 10 years to December 31, 2025.
- Those wary of financial-sector exposure: the fund invests a significant share of its money in debt from banks, broker-dealers and insurers.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| ICSH this fund | 1.8 yrs | 0.08% | $8.14B | +3.5% | +4.9% |
| BKUI BNY Mellon Ultra Short Income ETF | 1.6 yrs | 0.12% | $574.7M | +3.5% | +4.9% |
| JPST JPMorgan Ultra-Short Income ETF | 2 yrs | 0.18% | $41.13B | +3.1% | +4.8% |
| ULST SPDR SSgA Ultra Short Term Bond ETF | 1.3 yrs | 0.2% | $532.7M | +3.1% | +4.7% |
| YEAR AB Ultra Short Income ETF | 1.2 yrs | 0.25% | $1.54B | +3.0% | +4.7% |
| VUSB Vanguard Ultra-Short Bond ETF | 2.8 yrs | 0.1% | $8.94B | +3.5% | +5.1% |
| RAVI FlexShares Ultra-Short Income Fund | 3.4 yrs | 0.25% | $1.49B | +3.7% | +4.9% |
| GSY Invesco Ultra Short Duration ETF | 3.5 yrs | 0.22% | $3.92B | +3.7% | +5.2% |
Questions investors ask
Is ICSH a money market fund?
No. ICSH is an actively managed bond ETF. Its prospectus says it is not a money market fund and does not try to keep a stable $1.00 share price. Its price moves with interest rates and credit conditions, though so far the moves have been small. Its deepest drop was 3.9% in March 2020, and it recovered by May 11, 2020. It holds investment-grade debt that mostly matures within three years.
What's the difference between ICSH and JPST?
Both are actively managed ultra-short bond ETFs that hold investment-grade debt, and their returns have been nearly identical. Through late October 2026, each returned 3.5% over one year and 4.9% a year over three years. The main differences are cost and size. ICSH charges 0.08% a year, compared with 0.18% for JPMorgan's JPST. JPST is much larger, with $41.1 billion in net assets as of August 31, 2026, against $8.1 billion for ICSH as of July 31, 2026.
Does ICSH pay monthly dividends?
Yes. ICSH pays distributions every month. Over the 12 months to October 27, 2026, it paid $2.08 per share, a trailing yield of 4.12%. The income comes from interest on its short-term bonds, notes and repurchase agreements, so it rises and falls with short-term interest rates. If rates drop, payouts are likely to shrink as holdings mature and the money is reinvested at lower yields.
Can ICSH lose money?
Yes, though its losses have been small. Its deepest fall was 3.9%, between March 9 and March 23, 2020, and it recovered by May 11, 2020. Its worst quarter was a 0.41% loss in the first quarter of 2022. Every full calendar year since launch has ended positive, and 2014's 0.1% was the weakest. Risks include rising rates, issuers failing to pay, and heavy exposure to banks, insurers and other financial companies.
What is ICSH's expense ratio?
ICSH's expense ratio is 0.08% a year, according to its prospectus filed February 23, 2026. That is the lowest of eight similar ultra-short bond funds, which average 0.19%. Vanguard's VUSB charges 0.10% and BNY Mellon's BKUI charges 0.12%. The SEC's standard example assumes $10,000 invested with a 5% yearly return. On that basis, costs would be about $8 after one year, $45 after five years and $103 after ten.