ETF Versus

HYG vs SHY

iShares iBoxx $ High Yield Corporate Bond ETF vs iShares 1-3 Year Treasury Bond ETF

Last updated: 2026-04-02

HYG iShares

iShares iBoxx $ High Yield Corporate Bond ETF (HYG) is an exchange-traded fund issued by iShares that provides exposure to below-investment-grade U.S. corporate bonds offering higher yields. It charges an above-average expense ratio of 0.49%. The fund offers a high dividend yield of 5.88%. Launched in 2007, the fund has a 19-year track record.

AUM: $16.3B ER: 0.49% Yield: 5.88% Since: Apr 4, 2007
SHY iShares

iShares 1-3 Year Treasury Bond ETF (SHY) is an exchange-traded fund issued by iShares that provides exposure to short-duration U.S. Treasury bonds with low interest rate risk. It charges a low expense ratio of 0.15%. The fund offers an attractive dividend yield of 3.76%. Launched in 2002, the fund has a 24-year track record.

AUM: $24.6B ER: 0.15% Yield: 3.76% Since: Jul 22, 2002

Quick Verdict

SHY is significantly cheaper at 0.15% vs 0.49% expense ratio, saving you approximately $662 per $10,000 invested over 10 years. HYG has edged ahead over the past year (0.9% vs -0.2%). Income investors may prefer HYG for its higher yield (5.9% vs 3.8%).

Key Metrics

Metric HYG SHY
Expense Ratio 0.49% 0.15%
Dividend Yield 5.9% 3.8%
Fund Family iShares iShares
Category US High Yield Bond US Short-Term Treasury

Performance Chart

Indexed to 100 at start (5-year comparison)

80 85 90 95 100 105 2021-04 2022-06 2023-09 2024-12 2026-04
HYG -8.9%
SHY -4.5%

Performance Comparison

Period HYG SHY Difference
1 Month -1.13% -0.59% -0.54%
3 Months -1.61% -0.65% -0.96%
6 Months -1.82% -0.57% -1.25%
YTD -1.61% -0.65% -0.96%
1 Year +0.86% -0.19% +1.05%
3 Years +5.62% +0.29% +5.33%
5 Years -8.89% -4.51% -4.38%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period HYG Fees SHY Fees You Save
$10.000 10 years $960 $298 $662
$10.000 20 years $4.052 $1.278 $2.774
$10.000 30 years $12.832 $4.109 $8.723
$50.000 10 years $4.799 $1.490 $3.309
$50.000 30 years $64.162 $20.547 $43.615
$100.000 30 years $128.324 $41.094 $87.229

Risk Metrics

Based on 5 years of daily returns

Metric HYG SHY
Annualized Volatility 7.6% 2.1%
Max Drawdown -19.3% -6.7%
Sharpe Ratio -0.80 -2.55

Dividend Comparison

Metric HYG SHY
Annual Dividend (per share) $4.67 $3.10
Dividend Yield 5.88% 3.76%
Distribution Frequency Monthly Monthly

Which One Should You Choose?

Choose SHY if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose HYG if...

you prioritize dividend income and want higher regular distributions from your portfolio.

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