SHY — iShares 1-3 Year Treasury Bond ETF
iShares (BlackRock) · Expense Ratio: 0.15% · US Bonds · 9bp above the US Bonds category average of 0.06%
Key Facts
| Ticker | SHY |
| Full Name | iShares 1-3 Year Treasury Bond ETF |
| Provider | iShares (BlackRock) |
| Expense Ratio | 0.15% |
| Category | US Bonds |
| Assets Under Management | $25B |
| Inception Year | 2002 (24 years ago) |
| Number of Holdings | 100 |
| Dividend Yield | ~4% (very high) |
| Top Holdings | 1-3yr Treasury |
What Is SHY?
SHY, managed by iShares (BlackRock), launched in 2002, is a major ETF with deep liquidity and tight bid-ask spreads in the US Bonds category. US bond market ETF providing fixed income exposure to government and corporate bonds. With $25B in assets under management, it benefits from deep institutional liquidity and tight bid-ask spreads.
SHY in a FIRE Portfolio
Bonds and inflation-protected securities act as portfolio ballast — reducing volatility and providing stability during the distribution phase for FIRE investors.
Bonds stabilize your portfolio during stock market crashes. In a FIRE portfolio, a common allocation is 96% stocks / 4% bonds (the "96 minus your age" rule). Bond funds like SHY provide the fixed-income portion of this allocation.
Cost Analysis: How SHY's 0.15% Fee Affects Your FIRE Timeline
At 0.15%, SHY is moderately priced. Annual cost on a $100K position: $150. Over 30 years, fees could consume approximately 0.9% of total returns. On a $1M FIRE portfolio, cumulative fees approach $15,000. Compare with lower-cost peers in US Bonds: .
Dividend Income Potential
With a very high dividend yield of approximately 4%, here's what SHY could generate in annual income at different portfolio sizes:
| Portfolio Value | Annual Dividend Income | Monthly Income |
|---|---|---|
| $100,000 | $4,000/year | $333/month |
| $250,000 | $10,000/year | $833/month |
| $500,000 | $20,000/year | $1,667/month |
| $1,000,000 | $40,000/year | $3,333/month |
Frequently Asked Questions About SHY
What is the expense ratio for SHY?
SHY has an expense ratio of 0.15%. This is moderately priced — on a $100K portfolio, annual fees are $150. 9bp above the us bonds category average of 0.06%.
Is SHY good for a FIRE portfolio?
Bonds and inflation-protected securities act as portfolio ballast — reducing volatility and providing stability during the distribution phase for FIRE investors. Its 0.15% expense ratio is moderately priced for the US Bonds category.
How does the 0.15% fee affect long-term returns?
At 0.15%, you'll pay $150/year per $100K invested. Over 30 years, fees reduce total returns by approximately 0.9%. Use the embedded calculator below to model the exact impact on your specific portfolio.
Similar ETFs in US Bonds
- BND — Vanguard Total Bond Market ETF (0.03% · Portfolio Hedge)
- AGG — iShares Core US Aggregate Bond ETF (0.03% · Portfolio Hedge)
- BNDX — Vanguard Total International Bond ETF (0.07% · Portfolio Hedge)
- BIV — Vanguard Intermediate-Term Bond ETF (0.04% · Portfolio Hedge)
- BSV — Vanguard Short-Term Bond ETF (0.04% · Portfolio Hedge)
- VCIT — Vanguard Intermediate-Term Corporate Bond ETF (0.04% · Portfolio Hedge)
- VCSH — Vanguard Short-Term Corporate Bond ETF (0.04% · Portfolio Hedge)
- MUB — iShares National Muni Bond ETF (0.05% · Portfolio Hedge)
- VTEB — Vanguard Tax-Exempt Bond ETF (0.05% · Portfolio Hedge)
- IEI — iShares 3-7 Year Treasury Bond ETF (0.15% · Portfolio Hedge)
- TLT — iShares 20+ Year Treasury Bond ETF (0.15% · Portfolio Hedge)
- GOVT — iShares US Treasury Bond ETF (0.05% · Portfolio Hedge)