At a glance
SHYD charges 0.32% a year, above the 0.18% average of the 7 funds most like it (the 7th cheapest of 8). It has $450.4M in assets, the 7th largest of that group; it paid 3.68% of its price in distributions over the past 12 months, monthly. Over the past year it returned +2.4% with distributions reinvested, the best of those 8 funds; over three years it returned +5.1% a year. At its worst it fell 31.2% in the 2020 crash (S&P 500: 33.7%) and 12.1% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 10 months and 34 months after the lows. Its ten largest positions make up 9.6% of the fund, out of 582 in all.
The short version
VanEck Short High Yield Muni ETF (SHYD) tracks the ICE 1-12 Year Broad High Yield Crossover Municipal Index. About 70% of that index is below-investment-grade ("junk") municipal bonds and about 30% is investment-grade munis, all maturing in 1 to 12 years. That tilt toward weaker credits produced a 3.68% trailing yield, paid monthly, as of October 27, 2026. But its 0.32% expense ratio is well above the 0.18% average of similar funds.
Price history
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SHYD +2.4% 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 | |
|---|---|---|---|---|---|---|
| SHYD official prospectus, to Dec 31, 2025 | — | +4.66% | — | +1.30% | +2.14% | — |
| ICE US Broad Municipal Index (reflects no deduction for fees, expenses or taxes) index, same period | — | +4.10% | — | +0.92% | +2.35% | — |
| SHYD price data to Oct 27, 2026 | +1.2% | +2.4% | +5.1% | +1.1% | +2.1% | +2.2% |
- Over the year to Oct 27, 2026, SHYD returned +2.4%, 1st of 8 among similar funds.
- Its 5-year annualized return was +1.1% and its 10-year +2.1%.
- In the 2020 COVID crash it fell 31.2% and regained its old high 10.1 months after the low.
- Its worst full calendar year was 2022 (-9.2%); its best was 2019 (+7.5%).
- The deepest fall in its price history was 31.2% (Feb 27, 2020 to Mar 19, 2020), recovered by Jan 19, 2021.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +1.2% | — |
| 2025 | +5.5% | +4.66% |
| 2024 | +4.8% | +4.01% |
| 2023 | +2.4% | +3.67% |
| 2022 | -9.2% | -9.06% |
| 2021 | +4.1% | +3.92% |
| 2020 | +1.5% | +1.80% |
| 2019 | +7.5% | +7.30% |
| 2018 | +3.4% | +2.43% |
| 2017 | +4.9% | +5.50% |
| 2016 | -0.2% | -1.86% |
| 2015 | -0.8% | — |
| 2014 | +4.5% | — |
| 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 25.2% over that stretch · deepest drop along the way 31.2%, back to its old high 10.1 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 10.8% over that stretch · deepest drop along the way 12.1%, back to its old high 34.2 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.6200 | |
| 2025 | $0.7900 | +11.3% |
| 2024 | $0.7100 | +6.0% |
| 2023 | $0.6700 | +15.5% |
| 2022 | $0.5800 | -10.8% |
| 2021 | $0.6500 | -12.2% |
| 2020 | $0.7400 | -7.5% |
| 2019 | $0.8000 | +1.3% |
| 2018 | $0.7900 | +5.3% |
| 2017 | $0.7500 | +4.6% |
| 2016 | $0.7168 | -10.3% |
| 2015 | $0.7989 | +7.7% |
| 2014 | $0.7418 |
What's inside
As of Jul 31, 2026, the fund held 582 securities; the ten largest made up 9.6% of assets.
| Holding | Weight | |
|---|---|---|
| California Municipal Finance Authority Bonds and notes | 1.59% | |
| Patriots Energy Group Financing Agency Bonds and notes | 1.18% | |
| Commonwealth of Puerto Rico Bonds and notes | 0.96% | |
| Commonwealth of Puerto Rico Bonds and notes | 0.89% | |
| Greater Orlando Aviation Authority Bonds and notes | 0.88% | |
| City & County of Denver CO Bonds and notes | 0.87% | |
| California Infrastructure & Economic Development Bank Bonds and notes | 0.84% | |
| Black Belt Energy Gas District Bonds and notes | 0.80% | |
| Baldwin County Industrial Development Authority Bonds and notes | 0.80% | |
| New York Transportation Development Corp Bonds and notes | 0.80% | |
| Mission Economic Development Corp Bonds and notes | 0.77% | |
| Baldwin County Industrial Development Authority Bonds and notes | 0.72% | |
| Commonwealth of Puerto Rico Bonds and notes | 0.70% | |
| Kentucky Public Energy Authority Bonds and notes | 0.70% | |
| New York Transportation Development Corp Bonds and notes | 0.70% |
By country
United States 97.73%By issuer
Municipalities 97.73%The bonds mature in 10.2 years on average (weighted by size), with an average coupon of 4.67%.
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 $29.5M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.41%, +0.72%, -0.71%.
How it works
SHYD is a VanEck index fund. It aims to match, before fees, the price and yield performance of the ICE 1-12 Year Broad High Yield Crossover Municipal Index. The index holds tax-exempt municipal bonds, the debt of states, cities and public authorities, maturing in 1 to 12 years. Its rules fix the credit mix: 70% below investment grade (high yield, or "junk," bonds with more default risk), 20% triple-B, the lowest investment-grade tier, and a targeted 10% single-A.
VanEck does not buy every bond in the index. It uses "sampling," holding a subset picked to share the index's risk and return. The fund normally keeps at least 80% of total assets in index bonds and does not try to beat the index. The index rebalances on the last calendar day of each month.
As of July 31, 2026, the fund had 582 holdings, and the 10 largest made up 9.6% of assets. The biggest was a California Municipal Finance Authority revenue bond at about 1.6%, followed by a Patriots Energy Group Financing Agency gas supply bond and several Commonwealth of Puerto Rico issues. Average maturity was 10.2 years. Industrial development bonds, often repaid only from a project's revenue, were a significant share as of April 30, 2026.
What it really costs
- SHYD charges 0.32% a year, versus an average of 0.18% for the similar funds below (7th of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $33 in the first year and $406 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| SHYD | $33 | $103 | $180 | $406 |
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
SHYD pays monthly, mostly tax-exempt interest from a broad mix of municipal bonds, and takes on extra credit risk to earn a higher yield.
SHYD could add tax-exempt monthly income: its trailing 12-month yield was 3.68% as of October 27, 2026. The trade-off is credit risk. It launched in January 2014, so it has no record from the 2008 crisis. In the 2020 COVID crash its price fell 31.2% between February 27 and March 19, 2020, and took about 10 months to recover. In the 2022 bear market it fell 12.1% and needed about 34 months, until August 2025, to get back to its old high. Its worst calendar year was 2022, at -9.06%. Anyone who had to sell shares in a slump like those would have locked in losses, so a separate cash or high-quality bond reserve may matter. The fund costs 0.32% a year, or $33 on $10,000 in the first year under the SEC's standard example. Past results don't predict future returns, and a retirement plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Taxable-account investors seeking monthly tax-exempt income who accept that about 70% of the index is below-investment-grade municipal debt.
- Investors wanting 1-to-12-year municipal maturities spread across 582 holdings, with the top 10 at just 9.6% as of July 31, 2026.
- Investors drawn to its higher returns than similar funds: 5.1% a year over three years versus 3.7% for SMB, as of October 27, 2026.
Look elsewhere if
- Cost-focused investors: its 0.32% expense ratio compares with 0.07% for VanEck Short Muni ETF (SMB) and 0.03% for Vanguard Tax-Exempt Bond ETF (VTEB).
- Anyone who needs stable value: it fell 31.2% in early 2020 and took about 34 months to recover from its 2022 drop.
- Investors using IRAs or other tax-deferred accounts, where tax-exempt interest brings no extra benefit but the extra credit risk remains.
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 |
|---|---|---|---|---|---|
| SHYD this fund | 10.2 yrs | 0.32% | $450.4M | +2.4% | +5.1% |
| FSMB First Trust Short Duration Managed Municipa… | 11.7 yrs | 0.55% | $621.7M | +1.7% | +3.8% |
| TAFI AB Tax-Aware Short Duration Municipal ETF | 8.7 yrs | 0.27% | $1.38B | +1.6% | +3.9% |
| SMB VanEck Short Muni ETF | 8.2 yrs | 0.07% | $311.5M | +2.1% | +3.7% |
| CMF iShares California Muni Bond ETF | 12.4 yrs | 0.08% | $4.63B | -0.6% | +3.8% |
| MUB iShares National Muni Bond ETF | 13.5 yrs | 0.05% | $45.38B | -0.2% | +3.7% |
| SHM SPDR Nuveen Bloomberg Short Term Municipal … | 6.2 yrs | 0.2% | $3.47B | +1.2% | +3.3% |
| VTEB Vanguard Tax-Exempt Bond ETF | 14.5 yrs | 0.03% | $48.52B | +0.1% | +4.4% |
Questions investors ask
Is SHYD tax-free?
Mostly, for federal income tax. SHYD tracks an index of tax-exempt municipal bonds, and interest from municipal bonds is generally exempt from federal income tax. States, however, often tax interest from bonds issued elsewhere, and the fund holds bonds from many states, including California, Illinois and New York. Gains from selling your shares are taxable. Because of these factors, the tax benefit is largest in a taxable account and is lost inside an IRA.
Does SHYD pay monthly dividends?
Yes. SHYD pays income monthly. Over the 12 months to October 27, 2026, it paid about $0.83 per share, a trailing yield of 3.68%. The payments come from interest on its municipal bonds, which had an average coupon of 4.67% as of July 31, 2026. The amount can change from month to month as bonds mature, get called early or are replaced at different rates.
Is SHYD a junk bond fund?
Largely, yes. Its index targets 70% non-investment-grade ("junk") municipal bonds, 20% triple-B bonds and about 10% single-A bonds. Three Commonwealth of Puerto Rico bonds were among its 15 largest positions as of July 31, 2026. Many holdings are industrial development bonds, which are usually repaid only from a project's revenue. The prospectus warns that high-yield securities carry a greater risk of lost income and principal than higher-rated bonds.
SHYD vs FSMB: what's the difference?
First Trust Short Duration Managed Municipal ETF (FSMB) is the closest match to SHYD by maturity and issuer mix. SHYD follows an index built around high-yield munis. SHYD is cheaper, at 0.32% a year versus 0.55%. As of October 27, 2026, SHYD returned 2.4% over one year and 5.1% a year over three years, against 1.7% and 3.8% for FSMB. SHYD's average maturity was 10.2 years versus 11.7 for FSMB. FSMB was larger, with $622 million in net assets against SHYD's $450 million, as of July 31, 2026.
What is SHYD's 10-year return?
SHYD returned 2.14% a year over the 10 years ended December 31, 2025, according to its prospectus. Its five-year average was 1.30% and its one-year return was 4.66%. The broad ICE US Broad Municipal Index, which deducts no fees, returned 2.35%, 0.92% and 4.10% over the same periods. The fund's strongest quarter was a 3.87% gain in late 2023. Its weakest was a 5.99% loss in the first quarter of 2022.