1-3 Year Treasury Bond (SHY): How to Buy

By Rachel Warren – Updated Oct 16, 2025 at 12:54 PM | Fact-checked by Margo Winton Parodi

Key Points

The SHY ETF tracks the ICE US Treasury 1-3 Year Bond Index, offering exposure to short-term U.S. bonds.
There were 88 bonds in the SHY ETF as of Oct. 2025, mainly U.S. Treasuries, with a 2.84% average coupon.
SHY distributes dividends monthly, with a low expense ratio of 0.15%.

The iShares 1-3 Year Treasury Bond ETF (SHY +0.06%) is an exchange-traded fund (ETF) that is part of the iShares Division of BlackRock (BLK +1.03%). iShares offers a variety of ETFs, including portfolio ETFs, active ETFs, and high-income equity ETFs.

The iShares 1-3 Year Treasury Bond ETF had more than $24 billion in assets under management (AUM) as of late 2025. Here's what investors need to know before buying this ETF and how to invest in ETFs for beginners.

NASDAQ: SHY

iShares Trust - iShares 1-3 Year Treasury Bond ETF

Today's Change

(0.06%) $0.05

Current Price

$83.11

Key Data Points

Market Cap

$0B

Day's Range

$83.09 - $83.13

52wk Range

$81.67 - $83.14

Volume

2.3M

Avg Vol

Gross Margin

0.00%

Dividend Yield

N/A

What is the iShares 1-3 Year Treasury Bond ETF?

The iShares 1-3 Year Treasury Bond ETF is designed to track the investment results of the ICE US Treasury 1-3 Year Bond Index, an index composed of U.S. Treasury bonds with remaining maturities between one and three years. Investors in the ETF will receive targeted access to this specific segment of the U.S. Treasury market, with broad exposure to short-term U.S. Treasury bonds.

Exchange-Traded Fund (ETF)

An exchange-traded fund, or ETF, allows investors to buy many stocks or bonds at once.

How to buy the iShares 1-3 Year Treasury Bond ETF

If you want to buy shares of the iShares 1-3 Year Treasury Bond ETF, you can do so with a few simple steps.

Open your brokerage account: Log in to your brokerage account where you handle your investments.
Search for the ETF: Enter the ticker or ETF name into the search bar to bring up the ETF's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this ETF.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

Holdings of the iShares 1-3 Year Treasury Bond ETF

The iShares 1-3 Year Treasury Bond ETF held 88 bonds as of October 2025.

The weighted average coupon of the underlying bonds in the fund is 2.84, with an effective duration of 1.85 years. The fund is weighted by 99.83% in U.S. Treasury bonds, with just 0.17% of the fund held in cash and/or derivatives.

The top 10 holdings of U.S. Treasury notes in the ETF as of October 2025 were:

Data source: iShares by BlackRock.
CUSIP	ISIN	SEDOL	Par Value	Market Value	Weight (%)	Notional Value	Duration	Maturity	Coupon (%)
9128284N7	US9128284N73	BD59D36	332,183,400.00	$331,041,627.44	1.36	331,041,627.44	2.43	May 15, 2028	2.88
9128282R0	US9128282R06	BF53YJ5	357,331,800.00	$350,680,468.70	1.44	350,680,468.70	1.77	Aug 15, 2027	2.25
9128283F5	US9128283F58	BF92XX5	250,137,800.00	$246,234,131.92	1.01	246,234,131.92	1.99	Nov 15, 2027	2.25
9128284V9	US9128284V99	BFZLQP9	316,865,100.00	$313,015,786.27	1.29	313,015,786.27	2.68	August 15, 2028	2.88
9128283W8	US9128283W81	BG0D0D3	327,223,100.00	$323,180,150.53	1.33	323,180,150.53	2.23	Feb 15, 2028	2.75
912828YU8	US912828YU85	BJR45M4	143,913,000.00	$141,668,409.38	0.58	141,668,409.38	1.09	November 30, 2026	1.63
91282CET4	US91282CET45	BK93979	391,978,000.00	$390,194,936.46	1.6	390,194,936.46	1.56	May 31, 2027	2.63
912828Z78	US912828Z781	BK9RKM3	281,933,200.00	$275,416,892.84	1.13	275,416,892.84	1.26	Jan 31, 2027	1.5
912828ZE3	US912828ZE35	BKPSY95	48,432,500.00	$46,452,812.61	0.19	46,452,812.61	1.43	Mar 31, 2027	0.63
912828YX2	US912828YX25	BKRM4B7	150,264,800.00	$147,783,469.79	0.61	147,783,469.79	1.18	Dec 31, 2026	1.75

Should I invest in the iShares 1-3 Year Treasury Bond ETF?

Based on your investing goals, personal values, and risk tolerance, there are numerous reasons you might determine that the iShares 1-3 Year Treasury Bond ETF makes sense for your portfolio.

If you want to invest in a sector ETF focused on a broad range of short-term U.S. Treasury bonds, a position in this ETF provides instant diversification and exposure to a variety of these bonds. Likewise, if you're looking for a lower-risk, income-focused investment and you want a monthly income stream, the ETF could also be worth a look.

Short-term Treasury bonds are debt securities that mature in a few months to a few years and are issued by the U.S. government. When the bond matures, the U.S. government repays the principal and any interest earned. Investors are paid interest payments, also known as coupon payments, during the life of the bond.

Short-term bonds are considered low-risk investments because they are backed by the U.S. government and are a popular choice for investors who want to preserve their principal investment while earning some interest.

These bonds are also less affected by interest rate fluctuations because they mature quickly, making them a more stable choice than long-term bonds.

If you prefer to handpick the bonds you invest or want less exposure to U.S. government bonds, you might prefer to take a small position in this ETF or consider a different fund.

Does the iShares 1-3 Year Treasury Bond ETF pay a dividend?

Yes, the iShares 1-3 Year Treasury Bond ETF pays a dividend that is distributed on a monthly basis. It yielded 3.9% as of October 2025.

What is the iShares 1-3 Year Treasury Bond ETF's expense ratio?

The iShares 1-3 Year Treasury Bond ETF has an expense ratio of 0.15%, so a $10,000 investment in the ETF would cost about $15 in annual fees.

Expense Ratio

A percentage of mutual fund or ETF assets deducted annually to cover management, operational, and administrative costs.

Historical performance of the iShares 1-3 Year Treasury Bond ETF

The iShares 1-3 Year Treasury Bond ETF is designed to track the performance of the ICE US Treasury 1-3 Year Bond Index. Let's take a look at how the ETF has delivered on that objective through the years.

Data source: iShares by BlackRock.
Marker	1y	3y	5y	10y	Since Inception
Total Return (%)	3.74	4.21	1.42	1.54	1.96
Market Price (%)	3.76	4.21	1.42	1.54	1.96
Benchmark (%)	3.87	4.34	1.53	1.67	2.08
After Tax Pre-Liq. (%)	2.10	2.77	0.49	0.81	1.26
After Tax Post-Liq. (%)	2.19	2.60	0.68	0.86	1.24

The bottom line on the iShares 1-3 Year Treasury Bond ETF

This iShares 1-3 Year Treasury Bond EF can enable investors to gain broad exposure to numerous high-quality short-term bonds that provide consistent monthly income. If you’re interested in investing in a lower-risk, stable investment, and short-term bonds, this ETF could be a solid choice for a buy-and-hold portfolio.

FAQ

About the Author

Rachel Warren is a contributing Motley Fool stock market analyst covering pharmaceuticals, biotechnology, medical devices, information technology, and consumer goods. Prior to The Motley Fool, Rachel was a paralegal and legal administrator. She holds a bachelor’s degree in paralegal studies from Liberty University School of Law.

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Rachel Warren has no position in any of the stocks mentioned. The Motley Fool recommends BlackRock. The Motley Fool has a disclosure policy.