At a glance
SYSB charges 0.25% a year, above the 0.1% average of the 7 funds most like it (the 7th cheapest of 8). It has $1.17B in assets, the 8th largest of that group; it paid 4.63% of its price in distributions over the past 12 months, monthly. Over the past year it returned −1.5% with distributions reinvested, the weakest of those 8 funds; over three years it returned +6.6% a year. At its worst it fell 11.7% in the 2020 crash (S&P 500: 33.7%) and 16.5% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 4 months and 27 months after the lows. Its ten largest positions make up 20.9% of the fund, out of 834 in all.
The short version
iShares Systematic Bond ETF (SYSB) tracks the BlackRock Universal Systematic Bond Index. The index is a rules-based mix of U.S. Treasuries, agency mortgage-backed bonds, and both investment-grade and high-yield ("junk") corporate bonds. Plain total-bond-market funds hold a fixed mix. SYSB's index instead moves its junk-bond weight and its sensitivity to interest rates up or down each month, based on market signals. That approach costs 0.25% a year, against 0.03% for BND and AGG and 0.06% for IUSB.
Price history
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SYSB -1.5% 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 | |
|---|---|---|---|---|---|---|
| SYSB official prospectus, to Dec 31, 2025 | — | +8.25% | — | +1.24% | +2.75% | — |
| Bloomberg US Universal Index index, same period | — | +7.58% | — | +0.06% | +2.44% | — |
| SYSB price data to Oct 27, 2026 | -1.2% | -1.5% | +6.6% | +1.2% | +2.0% | +2.2% |
- Over the year to Oct 27, 2026, SYSB returned -1.5%, 8th of 8 among similar funds.
- Its 5-year annualized return was +1.2% and its 10-year +2.0%.
- In the 2020 COVID crash it fell 11.7% and regained its old high 4 months after the low.
- Its worst full calendar year was 2022 (-13.6%); its best was 2019 (+10.0%).
- The deepest fall in its price history was 18.5% (Sep 15, 2021 to Oct 20, 2022), recovered by Apr 28, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -1.2% | — |
| 2025 | +8.3% | +8.25% |
| 2024 | +6.0% | +6.00% |
| 2023 | +8.2% | +8.29% |
| 2022 | -13.6% | -13.61% |
| 2021 | -1.0% | -0.93% |
| 2020 | +3.3% | +3.21% |
| 2019 | +10.0% | +10.35% |
| 2018 | -0.9% | -1.02% |
| 2017 | +3.9% | +3.85% |
| 2016 | +5.0% | +5.32% |
| 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 9.3% over that stretch · deepest drop along the way 11.7%, back to its old high 4 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 16.2% over that stretch · deepest drop along the way 16.5%, back to its old high 26.5 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $3.0900 | |
| 2025 | $4.2900 | -2.3% |
| 2024 | $4.3900 | +14.6% |
| 2023 | $3.8300 | +40.3% |
| 2022 | $2.7300 | +43.7% |
| 2021 | $1.9000 | -28.3% |
| 2020 | $2.6500 | -20.4% |
| 2019 | $3.3300 | -3.8% |
| 2018 | $3.4600 | +25.8% |
| 2017 | $2.7500 | -4.8% |
| 2016 | $2.8900 |
What's inside
As of Jul 31, 2026, the fund held 834 securities; the ten largest made up 20.86% of assets, and 16.04% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| United States Treasury Bonds and notes | 3.17% | |
| United States Treasury Bonds and notes | 3.08% | |
| United States Treasury Bonds and notes | 2.34% | |
| United States Treasury Bonds and notes | 2.16% | |
| United States Treasury Bonds and notes | 2.11% | |
| United States Treasury Bonds and notes | 1.68% | |
| United States Treasury Bonds and notes | 1.66% | |
| United States Treasury Bonds and notes | 1.60% | |
| United States Treasury Bonds and notes | 1.54% | |
| United States Treasury Bonds and notes | 1.52% | |
| United States Treasury Bonds and notes | 1.46% | |
| United States Treasury Bonds and notes | 1.35% | |
| United States Treasury Bonds and notes | 1.30% | |
| United States Treasury Bonds and notes | 1.26% | |
| UMBS, TBA Mortgage-backed securities | 1.10% |
By country
United States 90.65%United Kingdom 1.99%Canada 1.7%Australia 0.48%Luxembourg 0.45%By issuer
Companies 47.54%US Treasury 30.95%US government-sponsored enterprises 11.88%US government agencies 4.09%Other 2.7%The bonds mature in 11.7 years on average (weighted by size), with an average coupon of 4.42%.
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 $172.0M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.29%, +0.30%, -1.37%.
How it works
SYSB follows the BlackRock Universal Systematic Bond Index, which is built by BlackRock Index Services. The index starts with a broad universe of U.S. dollar bonds weighted by market value. It then gives high-yield corporate bonds a permanent extra weight. These are bonds from less creditworthy companies that pay more interest. The extra weight comes out of Treasuries and agency mortgage-backed securities, which are home-loan bonds backed by government-sponsored agencies. Next, a signal based on junk-bond prices and spreads adds or removes 2 or 4 percentage points of junk-bond weight. (A spread is the extra yield a bond pays over Treasuries.)
Among corporate bonds, the index drops the issuers with the highest estimated chance of default. It then tilts toward bonds that pay more after allowing for possible losses. Investment-grade picks are limited to maturities of 1 to 10 years. Finally, the index decides whether rates are rising or falling and sets its duration up to 10% shorter or longer than the starting universe. Duration measures how much a bond's price moves when rates change. Most of this adjustment is made through the Treasury holdings.
The index rebalances monthly. The fund holds a representative sample rather than every bond: 834 holdings as of July 31, 2026, against 1,202 issues in the index as of October 31, 2025. The prospectus reports portfolio turnover of 567%. That much trading creates costs that are not included in the expense ratio. The fund also held a small amount of Treasury futures.
What it really costs
- SYSB charges 0.25% a year, versus an average of 0.1% for the similar funds below (7th of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $26 in the first year and $318 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| SYSB | $26 | $80 | $141 | $318 |
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
It is a broad bond fund spread across Treasuries, mortgage bonds and corporates, and its holdings are matched most closely with total-bond-market funds such as IUSB and BND.
SYSB could serve as the bond part of a portfolio. It pays monthly, and its trailing 12-month yield was 4.63% as of October 27, 2026. Over the year to that date, its beta to the stock market was 0.15, so it moved little with stocks. It is not a safe harbor, though. It fell 11.7% in March 2020 and took about 4 months to recover. It lost 13.61% in 2022. Its deepest drop, 18.5% from September 2021 to October 2022, took about 30 months to recover. Someone selling shares for income during that stretch would have locked in losses. The fund launched in 2015, so it has no 2008 record. Under the SEC's standard example, $10,000 would cost $318 in fees over 10 years at the 0.25% expense ratio. 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
- Investors wanting one fund that mixes Treasuries, mortgage bonds and corporates, including junk bonds, with monthly income (4.63% trailing yield as of October 27, 2026).
- Those comfortable with rules-based monthly shifts in junk-bond weight and rate sensitivity, and the 567% portfolio turnover that comes with them.
- Investors willing to pay 0.25% for an approach that beat the Bloomberg US Universal Index over 1, 5 and 10 years through 2025.
Look elsewhere if
- Cost-focused investors: BND and AGG charge 0.03% and IUSB charges 0.06%, against SYSB's 0.25%.
- People who may need the money within a few years: the fund fell 18.5% in 2021–2022 and took about 30 months to recover.
- Those wanting only high-quality bonds: about 47.5% sat in corporate bonds, including junk bonds, and a significant portion came from financial companies.
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 |
|---|---|---|---|---|---|
| SYSB this fund | 11.7 yrs | 0.25% | $1.17B | -1.5% | +6.6% |
| IUSB iShares Core Total USD Bond Market ETF | 11.8 yrs | 0.06% | $43.00B | -0.3% | +5.1% |
| BND Vanguard Total Bond Market ETF | 11.7 yrs | 0.03% | $397.11B | -0.4% | +4.7% |
| AGG iShares Core U.S. Aggregate Bond ETF | 12.4 yrs | 0.03% | $138.32B | -0.4% | +4.7% |
| FBND Fidelity Total Bond ETF | 14.4 yrs | 0.36% | $28.16B | -0.2% | +5.4% |
| SCHZ Schwab U.S. Aggregate Bond ETF | 12.5 yrs | 0.03% | $10.60B | -1.1% | +5.2% |
| BIV Vanguard Intermediate-Term Bond ETF | 7.5 yrs | 0.03% | $52.45B | -0.7% | +5.1% |
| PULS PGIM Ultra Short Bond ETF | 8.8 yrs | 0.15% | $18.71B | +4.1% | +5.2% |
Questions investors ask
Is SYSB good for retirement income?
SYSB may suit retirees who want monthly bond income and can live with some swings. Its trailing 12-month yield was 4.63% as of October 27, 2026. Through December 31, 2025, it returned 2.75% a year over 10 years, ahead of the Bloomberg US Universal Index's 2.44%. But its junk bonds and long maturities add risk. It lost 13.61% in 2022 and took about 30 months to recover from its deepest drop.
What's the difference between SYSB and IUSB?
Both are iShares bond ETFs with similar average maturities: 11.7 years for SYSB and 11.8 years for IUSB. IUSB, iShares' core total U.S. dollar bond market fund, costs 0.06% and held about $43 billion as of July 31, 2026, against SYSB's 0.25% and $1.17 billion. SYSB adds rules-based tilts toward junk bonds and shifts its rate sensitivity. Its 3-year annualized return was 6.6%, against 5.8% for IUSB. Over one year, it returned -1.5% against IUSB's -0.1%.
Does SYSB pay monthly dividends?
Yes. SYSB pays distributions monthly. Over the 12 months to October 27, 2026, it paid $3.96 per share, a trailing yield of 4.63%. The payments come mainly from interest on the fund's Treasuries, mortgage-backed bonds and corporate bonds. They can change from month to month as the holdings and interest rates change. When rates fall, issuers may repay callable bonds early, which can lower the fund's income.
What is SYSB's expense ratio?
SYSB's expense ratio is 0.25% a year, per its February 2026 prospectus. All of it is the management fee, with no waiver. Under the SEC's standard example, $10,000 earning 5% a year would cost about $26 after one year, $141 after five and $318 after ten. That ranks 7th of 8 against similar funds, which average 0.10%. Its 567% turnover also creates trading costs that are not included in the expense ratio.
Does SYSB hold junk bonds?
Yes. SYSB's index gives high-yield ("junk") corporate bonds a permanent extra weight. It raises or lowers that weight by 2 or 4 percentage points depending on market signals. The index screens out the issuers most likely to default, but junk bonds still carry more default and price risk than Treasuries. As of July 31, 2026, about 47.5% of the fund was in corporate bonds of all grades and about 31% in U.S. Treasuries.