At a glance
SHY charges 0.15% a year, above the 0.11% average of the 7 funds most like it (the 5th cheapest of 8). It has $25.91B in assets, the 4th largest of that group; it paid 3.6% of its price in distributions over the past 12 months, monthly. Over the past year it returned +1.7% with distributions reinvested, 7th of those 8 funds; over three years it returned +3.9% a year. At its worst it fell 0.6% in the 2020 crash (S&P 500: 33.7%) and 4.7% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high within a month and 15 months after the lows. Its ten largest positions make up 15.4% of the fund, out of 90 in all.
The short version
BlackRock's iShares 1-3 Year Treasury Bond ETF (SHY) holds U.S. Treasury notes that mature in one to three years and tracks the ICE U.S. Treasury 1-3 Year Bond Index. Short maturities have kept price swings small, with a deepest drop of 5.7% since 2005, and it pays income monthly. The main drawback is cost: 0.15% a year, against 0.03% for Schwab's SCHO and Vanguard's VGSH, which share its 1.9-year average maturity.
Price history
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SHY +1.7% over the year to Nov 2, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| SHY official prospectus, to Dec 31, 2025 | — | +5.00% | — | +1.63% | +1.70% | — |
| ICEB Of AUS Broad Market Index index, same period | — | +7.15% | — | -0.42% | +2.01% | — |
| SHY price data to Nov 2, 2026 | +1.0% | +1.7% | +3.9% | +1.9% | +1.7% | +2.0% |
- Over the year to Nov 2, 2026, SHY returned +1.7%, 7th of 8 among similar funds.
- Its 5-year annualized return was +1.9% and its 10-year +1.7%.
- In the 2020 COVID crash, while stocks fell, it gained 2.1%.
- Its worst full calendar year was 2022 (-3.9%); its best was 2007 (+7.3%).
- The deepest fall in its price history was 5.7% (Aug 2, 2021 to Nov 3, 2022), recovered by Jun 3, 2024.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +1.0% | — |
| 2025 | +4.9% | +5.00% |
| 2024 | +3.9% | +3.92% |
| 2023 | +4.2% | +4.15% |
| 2022 | -3.9% | -3.90% |
| 2021 | -0.7% | -0.73% |
| 2020 | +3.0% | +3.01% |
| 2019 | +3.4% | +3.42% |
| 2018 | +1.5% | +1.45% |
| 2017 | +0.3% | +0.27% |
| 2016 | +0.8% | +0.75% |
| 2015 | +0.4% | — |
| 2014 | +0.5% | — |
| 2013 | +0.2% | — |
| 2012 | +0.3% | — |
| 2011 | +1.4% | — |
| 2010 | +2.3% | — |
| 2009 | +0.3% | — |
| 2008 | +6.6% | — |
| 2007 | +7.3% | — |
| 2006 | +3.9% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Gained 8.8% over that stretch · deepest drop along the way 2.2%, back to its old high 3.1 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Gained 2.1% over that stretch · deepest drop along the way 0.6% |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 4.4% over that stretch · deepest drop along the way 4.7%, back to its old high 14.8 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $2.1729 | |
| 2025 | $3.1400 | -1.9% |
| 2024 | $3.2000 | +30.1% |
| 2023 | $2.4600 | +132.1% |
| 2022 | $1.0600 | +404.8% |
| 2021 | $0.2100 | -73.8% |
| 2020 | $0.8000 | -55.6% |
| 2019 | $1.8000 | +24.1% |
| 2018 | $1.4500 | +79.0% |
| 2017 | $0.8100 | +34.2% |
| 2016 | $0.6037 | +33.1% |
| 2015 | $0.4536 | +47.9% |
| 2014 | $0.3067 | +38.5% |
| 2013 | $0.2214 | -29.2% |
| 2012 | $0.3129 | -54.3% |
| 2011 | $0.6850 | -20.7% |
| 2010 | $0.8642 | -56.7% |
| 2009 | $1.9965 | -30.8% |
| 2008 | $2.8862 | -17.7% |
| 2007 | $3.5072 | +5.9% |
| 2006 | $3.3111 |
Living on SHY: its income record, cuts, and how much a $1,000 monthly income takes →
What's inside
As of Aug 31, 2026, the fund held 90 securities; the ten largest made up 15.41% of assets.
| Holding | Weight | |
|---|---|---|
| United States of America Bonds and notes | 1.97% | |
| United States of America Bonds and notes | 1.71% | |
| United States of America Bonds and notes | 1.61% | |
| United States of America Bonds and notes | 1.51% | |
| United States of America Bonds and notes | 1.49% | |
| United States of America Bonds and notes | 1.48% | |
| United States of America Bonds and notes | 1.47% | |
| United States of America Bonds and notes | 1.40% | |
| United States of America Bonds and notes | 1.39% | |
| United States of America Bonds and notes | 1.39% | |
| United States of America Bonds and notes | 1.39% | |
| United States of America Bonds and notes | 1.37% | |
| United States of America Bonds and notes | 1.35% | |
| United States of America Bonds and notes | 1.35% | |
| United States of America Bonds and notes | 1.35% |
By country
United States 98.99%By issuer
US Treasury 98.99%The bonds mature in 1.9 years on average (weighted by size), with an average coupon of 3.1%.
Source: N-PORT holdings report as of Aug 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Aug 31, 2026, investors added a net $598.5M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.06%, +0.13%, +0.23%.
How it works
SHY tracks the ICE U.S. Treasury 1-3 Year Bond Index, run by ICE Data Indices, which is independent of BlackRock, the fund's manager. To qualify, a bond must be a fixed-rate, dollar-denominated U.S. Treasury with one to three years left until it matures and at least $300 million outstanding, not counting Federal Reserve holdings. Treasury bills, inflation-linked Treasuries and zero-coupon bonds are left out. The index had 96 issues as of February 28, 2026.
Bonds are weighted by market value, so larger issues count for more, and the index is updated on the last calendar day of each month. Notes that slip under one year to maturity drop out and newer ones replace them. Portfolio turnover, roughly the share of holdings traded in a year, was 57%. BlackRock doesn't own every bond. It uses representative sampling, holding a selection chosen to match the index's duration (price sensitivity to rate changes), maturity and yield. As of August 31, 2026, it held 90 issues, none above 2% of assets.
The fund must keep at least 90% of assets in Treasuries and may use futures, options or swaps for up to 10%, though it held none as of that date. It may lend securities worth up to one-third of its assets. It does not shift into cash when markets fall.
What it really costs
- SHY charges 0.15% a year, versus an average of 0.11% for the similar funds below (5th of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $15 in the first year and $192 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| SHY | $15 | $48 | $85 | $192 |
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-term U.S. Treasury notes have kept losses small, with a deepest drop of 5.7% since 2005, though recovering from that drop took 19 months.
SHY may serve as a steady reserve for money needed within a few years. It gained 8.8% from the stock market's 2007 peak to its 2009 low and 2.1% during the 2020 COVID crash. Rising interest rates were its weak spot. It lost 3.9% in 2022, its worst calendar year, and its deepest drop, 5.7% from August 2021 to November 2022, took 19 months to recover. Anyone drawing on it then faced a modest loss that took time to heal.
SHY pays monthly. Its trailing 12-month yield was 3.6% as of October 29, 2026. Over the year to that date it returned 1.9%, behind Treasury bill funds such as SGOV (3.7%). Its 0.15% expense ratio works out to $15 in the first year on $10,000 in the SEC's standard example. SCHO and VGSH charge 0.03%. Past results don't predict future ones, and a plan should weigh the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Retirees setting aside one to three years of spending in U.S. Treasuries who accept small dips. SHY's deepest drop since 2005 was 5.7%.
- Investors wanting monthly income from U.S. government debt, with a trailing yield of 3.6% as of October 29, 2026.
- Stock investors wanting a cushion for crashes. SHY gained 8.8% from the stock market's 2007 peak to its 2009 low.
Look elsewhere if
- Cost-focused investors. Schwab's SCHO and Vanguard's VGSH charge 0.03% a year, against SHY's 0.15%, for the same 1.9-year average maturity.
- Savers who want almost no price movement. SHY lost 3.9% in 2022, while Treasury bill funds like SGOV hold maturities averaging about 0.1 years.
- Investors seeking long-term growth or inflation protection. SHY excludes inflation-linked Treasuries and returned 1.70% a year over the 10 years to December 31, 2025.
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 |
|---|---|---|---|---|---|
| SHY this fund | 1.9 yrs | 0.15% | $25.91B | +1.7% | +3.9% |
| SCHO Schwab Short-Term U.S. Treasury ETF | 1.9 yrs | 0.03% | $12.95B | +2.1% | +4.2% |
| VGSH Vanguard Short-Term Treasury ETF | 1.9 yrs | 0.03% | $39.20B | +2.2% | +4.2% |
| USFR WisdomTree Floating Rate Treasury Fund | 1.5 yrs | 0.15% | $18.76B | +4.1% | +4.6% |
| SHV iShares Short Treasury Bond ETF | 0.3 yrs | 0.15% | $20.97B | +3.3% | +4.3% |
| BIL SPDR Bloomberg 1-3 Month T-Bill ETF | 0.2 yrs | 0.1356% | $47.08B | +3.3% | +4.3% |
| SGOV iShares 0-3 Month Treasury Bond ETF | 0.1 yrs | 0.09% | $105.98B | +3.4% | +4.4% |
| IEI iShares 3-7 Year Treasury Bond ETF | 4.7 yrs | 0.15% | $17.68B | -0.4% | +4.0% |
Questions investors ask
Does SHY pay monthly dividends?
Yes. SHY pays distributions every month, funded by interest on the Treasury notes it holds. Over the 12 months to October 29, 2026, it paid about $2.93 per share, a trailing yield of 3.6%. The amount can change. The prospectus warns that income may fall when interest rates drop, because maturing bonds get replaced with lower-yielding ones. With an average maturity of 1.9 years as of August 31, 2026, that replacement happens often.
What's the difference between SHY and VGSH?
Mostly cost. Both hold U.S. Treasuries averaging 1.9 years to maturity, but Vanguard's VGSH charges 0.03% a year and SHY charges 0.15%. Over the year to October 29, 2026, VGSH returned 2.1% and SHY 1.9%. Over three years they returned 4.2% and 4.0% a year. VGSH is also larger, with $39.2 billion in net assets as of August 31, 2026, against $25.9 billion for SHY. Schwab's SCHO matches VGSH on both cost and maturity.
Can SHY lose money?
Yes, though its losses have been small. SHY holds U.S. Treasury notes, so default risk is low, but bond prices fall when interest rates rise. It lost 3.9% in 2022, its worst calendar year, and its worst quarter was a 2.49% drop in the first quarter of 2022. Its deepest decline since 2005 was 5.7%, from August 2021 to November 2022, and it took 19 months to recover. The prospectus also notes that a change in the U.S. government's credit rating could hurt Treasury prices.
What's the difference between SHY and SGOV?
Mainly maturity. SGOV, the iShares 0-3 Month Treasury Bond ETF, holds Treasuries averaging about 0.1 years to maturity, against 1.9 years for SHY, in their August 31, 2026 holdings reports. That keeps SGOV's price steadier when rates move. It also costs less: 0.09% versus 0.15%. Over the year to October 29, 2026, SGOV returned 3.7% and SHY 1.9%. When rates fall, the edge can flip: SHY's longer notes keep their yields longer and can rise in price, while SGOV's income resets lower quickly.
How did SHY perform in the 2008 financial crisis?
It rose while stocks fell. From the stock market's peak on October 9, 2007, to its low on March 9, 2009, SHY returned 8.8%. Along the way it dipped 2.2% between March and June 2008, then recovered by mid-September, about three months later. It also held up in the 2020 COVID crash, slipping just 0.6% before recovering by March 26. Its worst stretch came in 2021 and 2022, when rising interest rates pushed bond prices down.