iShares 1-3 Year Treasury Bond ETF (SHY) is an exchange-traded fund that seeks to track the investment results of an index composed of U.S. Treasury bonds with remaining maturities between one and three years, excluding Treasury STRIPS. The ETF primarily invests in short-term U.S. Treasury securities issued by the United States Treasury, which comprise approximately 99.84% of its holdings; it offers investors exposure to low-credit-risk, liquid fixed-income instruments with an average duration of around 1.9 years, monthly dividend distributions, and a gross expense ratio of 0.15%. SHY trades on the NASDAQ exchange under the ticker SHY and is listed on additional exchanges including Bolsa Mexicana de Valores and Santiago Stock Exchange.
Launched on July 22, 2002 by BlackRock under its iShares brand, SHY operates as part of the iShares Trust, with BlackRock serving as the investment manager and sponsor headquartered in New York, New York. The fund targets institutional and retail investors seeking short-duration Treasury exposure for liquidity, yield curve positioning, or portfolio diversification within the fixed-income segment of the investment management industry. It maintains a market capitalization exceeding $22 billion and focuses on the U.S. domestic market, with primary operations centered in the United States.
In recent developments, BlackRock, the issuer of SHY, has pursued strategic expansions including the acquisition of HPS Investment Partners in 2025, which added approximately $165 billion in client assets and bolstered its private credit capabilities, alongside the formation of a new Private Financing Solutions business integrating private credit and CLO platforms. The firm also completed prior acquisitions such as Global Infrastructure Partners and announced partnerships like one with GeoWealth for customized models incorporating ETFs and SMAs. Fixed income ETFs like SHY have seen robust inflows, contributing to record $384 billion in 2025 flows for the category amid elevated interest rates and portfolio rebalancing.