TLT vs SHY: Head-to-Head Comparison
TLT vs SHY: iShares 20+ Year Treasury Bond ETF has an expense ratio of 0.15% while iShares 1-3 Year Treasury Bond ETF charges 0.15%. TLT holds 42 securities vs SHY's 85. 5-year returns: -5.20% vs 1.80%.
Last updated: April 2026
Bond
Quick Verdict
SHY edges out TLT with a stronger Beginner Suitability Score (9 vs 8.5). It offers better overall characteristics for new investors.
Side-by-Side Comparison
| Metric | TLT | SHY |
|---|---|---|
| Expense Ratio | 0.15% | 0.15% |
| AUM | $20.0B | $25.0B |
| Dividend Yield | 3.90% | 3.50% |
| Holdings | 42 | 85 |
| 1-Year Return | -2.50% | 4.00% |
| 5-Year Return (Ann.) | -5.20% | 1.80% |
| 10-Year Return (Ann.) | 0.50% | 1.50% |
| Beta | 0.18 | 0.03 |
| P/E Ratio | N/A | N/A |
TLT 5-year annualized return is -5.20% compared to SHY's 1.80%. Over 10 years, TLT returned 0.50% vs SHY's 1.50%.
View data table
| Period | TLT Return | SHY Return |
|---|---|---|
| YTD | -1.50% | 0.80% |
| 1 Year | -2.50% | 4.00% |
| 3 Year | -10.80% | 2.00% |
| 5 Year | -5.20% | 1.80% |
| 10 Year | 0.50% | 1.50% |
Key Differences Between TLT and SHY
TLT (iShares 20+ Year Treasury Bond ETF) is a long-term u.s. treasury fund managed by BlackRock. TLT invests in U.S. Treasury bonds with maturities of 20 years or more, making it highly sensitive to changes in long-term interest rates. When rates fall, TLT can deliver stock-like returns, but when rates rise, it can suffer significant losses. Beginners should understand that TLT is much more volatile than short-term bond funds, but it can serve as powerful portfolio insurance during stock market crashes.
SHY (iShares 1-3 Year Treasury Bond ETF) is a short-term treasury fund managed by BlackRock. SHY tracks the ICE U.S. Treasury 1-3 Year Bond Index, focusing exclusively on short-maturity U.S. Treasury bonds that mature within one to three years. Short-duration Treasuries have minimal interest rate risk, making SHY one of the most stable bond ETFs available. It serves as an excellent cash alternative or parking place for money you might need in the near term.
The most notable differences are in fees (0.15% vs 0.15%), number of holdings (42 vs 85), and 5-year returns (-5.20% vs 1.80%).
TLT vs SHY multi-factor comparison: TLT has a 0.15% expense ratio, -5.20% 5-year return, 42 holdings, 0.18 beta, and 3.90% yield. SHY has 0.15% expense ratio, 1.80% 5-year return, 85 holdings, 0.03 beta, and 3.50% yield.
View data table
| Metric | TLT | SHY |
|---|---|---|
| Expense Ratio | 0.15% | 0.15% |
| 5-Year Return | -5.20% | 1.80% |
| Holdings | 42 | 85 |
| Beta | 0.18 | 0.03 |
| Dividend Yield | 3.90% | 3.50% |
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Holdings Overlap Analysis
0%
Holdings Overlap
TLT and SHY share only 0% of their top holdings. These funds are quite different, making them complementary choices if you want broader market coverage.
TLT and SHY share 0% of their top holdings (low overlap). TLT has 42 total holdings and SHY has 85.
View data table
| Metric | TLT | SHY |
|---|---|---|
| Overlap | 0% | 0% |
| Unique Holdings | 100% | 100% |
| Total Holdings | 42 | 85 |
Cost Comparison Over Time
If you invest $10,000 and hold for 20 years (assuming 8% annual returns):
TLT
Fee cost: $1,278
SHY
Fee cost: $1,278
Over 20 years, the fee difference amounts to $0 on a $10,000 investment. The cost difference is negligible — choose based on other factors.
On a $10,000 investment over 20 years at 8% return, TLT (0.15% fee) grows to $45,332 while SHY (0.15% fee) grows to $45,332. The fee difference costs $0.
View data table
| Year | TLT Value | SHY Value |
|---|---|---|
| 0 | $10,000 | $10,000 |
| 5 | $14,592 | $14,592 |
| 10 | $21,291 | $21,291 |
| 15 | $31,067 | $31,067 |
| 20 | $45,332 | $45,332 |
Which One Should a Beginner Choose?
Choose TLT if: You want investors who believe interest rates will decline and want to profit from falling yields, those seeking portfolio insurance that tends to rise sharply during equity market panics, tactical investors using long-duration treasuries to express a view on interest rate direction. It's managed by BlackRock with an expense ratio of 0.15%.
Choose SHY if: You want investors parking cash for near-term needs with minimal risk of loss, conservative portfolio anchoring with the most stable bond etf available, emergency fund or short-term savings alternative to bank savings accounts. It's managed by BlackRock with an expense ratio of 0.15%.
Can You Own Both TLT and SHY?
Absolutely! With only 0% overlap, TLT and SHY complement each other well. A simple portfolio might allocate 60% to one and 40% to the other, or you could pair them with a bond ETF like BND for a complete three-fund portfolio.
Frequently Asked Questions
Should I buy TLT or SHY?▾
SHY edges out TLT with a stronger Beginner Suitability Score (9 vs 8.5). It offers better overall characteristics for new investors. However, both are solid options. TLT is best for investors who want investors who believe interest rates will decline and want to profit from falling yields, while SHY is better suited for investors parking cash for near-term needs with minimal risk of loss.
What is the difference between TLT and SHY?▾
TLT (iShares 20+ Year Treasury Bond ETF) tracks long-term u.s. treasury investments with 42 holdings and a 0.15% expense ratio. SHY (iShares 1-3 Year Treasury Bond ETF) focuses on short-term treasury with 85 holdings at 0.15%. Their top holdings overlap by 0%.
Can I own both TLT and SHY?▾
Yes! With only 0% holdings overlap, TLT and SHY complement each other well. Owning both gives you broader diversification.