ETF Versus

SHY vs TLT

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

Last updated: 2026-04-10

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 3.72%. Launched in 2002, the fund has a 24-year track record.

AUM: $25.3B ER: 0.15% Yield: 3.72% 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 4.53%. Launched in 2002, the fund has a 24-year track record.

AUM: $42.3B ER: 0.15% Yield: 4.53% Since: Jul 22, 2002

Quick Verdict

Both funds have delivered similar 1-year returns (-0.2% vs -0.0%), tracking closely. Income investors may prefer TLT for its higher yield (4.5% vs 3.7%).

Key Metrics

Metric SHY TLT
Expense Ratio 0.15% 0.15%
Dividend Yield 3.7% 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 2022-07 2023-10 2025-01 2026-04
SHY -4.4%
TLT -37.1%

Performance Comparison

Period SHY TLT Difference
1 Month -0.26% -0.85% +0.59%
3 Months -0.49% -1.45% +0.96%
6 Months -0.80% -4.61% +3.81%
YTD -0.52% -0.73% +0.21%
1 Year -0.19% -0.03% -0.16%
3 Years +0.46% -19.26% +19.72%
5 Years -4.40% -37.14% +32.74%

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 -2.53 -0.79

Dividend Comparison

Metric SHY TLT
Annual Dividend (per share) $3.07 $3.91
Dividend Yield 3.72% 4.53%
Distribution Frequency Monthly Monthly

Which One Should You Choose?

Choose TLT if...

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

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