ETF Versus

SHY vs TLT

iShares 1-3 Year Treasury Bond ETF vs iShares 20+ Year Treasury Bond ETF

Last updated: 2026-04-02

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
TLT iShares

iShares 20+ Year Treasury Bond ETF (TLT) is an exchange-traded fund issued by iShares that provides exposure to long-duration U.S. Treasury bonds with high interest rate sensitivity. It charges a low expense ratio of 0.15%. The fund offers a high dividend yield of 4.51%. Launched in 2002, the fund has a 24-year track record.

AUM: $41.7B ER: 0.15% Yield: 4.51% Since: Jul 22, 2002

Quick Verdict

Over the past year, SHY has significantly outperformed with a -0.2% return vs -5.7%. Income investors may prefer TLT for its higher yield (4.5% vs 3.8%).

Key Metrics

Metric SHY TLT
Expense Ratio 0.15% 0.15%
Dividend Yield 3.8% 4.5%
Fund Family iShares iShares
Category US Short-Term Treasury US Long-Term Treasury

Performance Chart

Indexed to 100 at start (5-year comparison)

60 71 82 93 104 115 2021-04 2022-06 2023-09 2024-12 2026-04
SHY -4.5%
TLT -37.0%

Performance Comparison

Period SHY TLT Difference
1 Month -0.59% -3.74% +3.15%
3 Months -0.65% -0.88% +0.23%
6 Months -0.57% -3.49% +2.92%
YTD -0.65% -0.88% +0.23%
1 Year -0.19% -5.72% +5.53%
3 Years +0.29% -19.08% +19.37%
5 Years -4.51% -37.00% +32.49%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period SHY Fees TLT Fees You Save
$10.000 10 years $298 $298 $0
$10.000 20 years $1.278 $1.278 $0
$10.000 30 years $4.109 $4.109 $0
$50.000 10 years $1.490 $1.490 $0
$50.000 30 years $20.547 $20.547 $0
$100.000 30 years $41.094 $41.094 $0

Risk Metrics

Based on 5 years of daily returns

Metric SHY TLT
Annualized Volatility 2.1% 15.9%
Max Drawdown -6.7% -46.4%
Sharpe Ratio -2.55 -0.79

Dividend Comparison

Metric SHY TLT
Annual Dividend (per share) $3.10 $3.89
Dividend Yield 3.76% 4.51%
Distribution Frequency Monthly Monthly

Which One Should You Choose?

Choose SHY if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

Choose TLT if...

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

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