Dividend comparison
SHY vs HYG: Which Is Better for Income?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for iShares 1-3 Year Treasury Bond ETF and iShares iBoxx $ High Yield Corporate Bond ETF, side by side. Updated October 21, 2026.
SHY vs HYG: key differences
The short answer, from the latest data on this page.
- Fees. SHY is cheaper at 0.15% a year versus 0.49% for HYG. On $10,000 that is $34 a year less in fees.
- Income. HYG pays more income, yielding 6.12% over the last twelve months versus 3.62% for SHY. That is about $249 more a year on $10,000. Both pay monthly.
- Performance. Over the last 5 years, HYG returned 11.2% versus 6.4% for SHY, with dividends reinvested. $10,000 would have grown to $11,120 in HYG and $10,644 in SHY.
- Risk. HYG has been the bumpier ride. Its worst peak-to-trough decline over the last 5 years was -15.8%, against -5.4% for SHY.
- Diversification. HYG holds 1,334 positions and SHY holds 90.
- Dividend growth. SHY grew its yearly payout 93.9% a year over the last 4 years, versus 7.1% for HYG.
Bottom line: SHY fits better if you care most about lower fees, smaller drawdowns and faster dividend growth. HYG fits better if you care most about more income today, stronger 5-year returns and broader diversification.
Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
| Metric | SHY iShares 1-3 Year Treasury Bond ETF | HYG iShares iBoxx $ High Yield Corporate Bond ETF |
|---|---|---|
| Dividend yield (TTM) | 3.62% | 6.12% |
| Dividend / share (TTM) | $2.95 | $4.70 |
| Payout frequency | Monthly | Monthly |
| Last dividend | $0.2410 on Oct 6, 2026 | $0.3416 on Oct 6, 2026 |
| Ex-dividend date | Oct 1, 2026 | Oct 1, 2026 |
| Dividend growth (CAGR) | 93.9% over 4 yrs | 7.1% over 4 yrs |
| Price | $81.30 | $76.83 |
| Beta | 0.22 | 0.67 |
| Max drawdown (5Y) | -5.4% | -15.8% |
| Market cap | $27.14B | $17.19B |
| Exchange | NASDAQ | AMEX |
| Expense ratio | 0.15% | 0.49% |
| Assets under management | $27.17B | $16.80B |
| Number of holdings | 90 | 1334 |
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.
SHY
$30.20/mo
$362 /yr at 3.62% yield
HYG
$50.97/mo
$612 /yr at 6.12% yield
Dividend history
Total dividends paid per share in each calendar year. SHY pays monthly; HYG pays monthly.
| Year | SHY | HYG |
|---|---|---|
| 2025 | $3.1524 | $4.6075 |
| 2024 | $3.2098 | $4.7241 |
| 2023 | $2.4525 | $4.4446 |
| 2022 | $1.0541 | $3.9032 |
| 2021 | $0.2232 | $3.4982 |
Strategy: Bonds
Funds that hold government, corporate or municipal debt and pay out the interest as monthly income. The two numbers that explain most of their behavior are duration, which sets how much the price moves when interest rates change, and credit quality, which sets how much extra yield is earned for default risk. Long-term Treasury funds move a lot with rates, while short-term funds behave closer to cash.
Bond prices fall when interest rates rise, and long-duration funds can lose as much as stocks in a fast rate-hiking cycle.
Performance
Total returns with dividends reinvested, from the adjusted closing price series. $10,000 invested on Oct 20, 2021 would now be worth $10,644 in SHY and $11,120 in HYG.
| Period | SHY | HYG |
|---|---|---|
| 1 month | 0.07% | -2.16% |
| 3 months | -0.84% | -3.54% |
| Year to date | -1.84% | -4.71% |
| 1 year | -1.56% | -4.08% |
| 3 years | 9.14% | 21.43% |
| 5 years | 6.44% | 11.20% |
- SHY
- HYG
Both series indexed to 100 on 2021-10-20 using the adjusted closing price series. Past performance does not guarantee future results.
Sector allocation
Weight of each sector within the fund. Sectors are aligned on the same row so the two funds can be read against each other directly.
- SHY
- HYG
Quick verdict
SHY fits better if you care most about lower fees, smaller drawdowns and faster dividend growth. HYG fits better if you care most about more income today, stronger 5-year returns and broader diversification. Model the holding inside your real portfolio before deciding.
Still deciding? Compare them in your portfolio
Forecast dividend income, track payouts, and see how SHY vs HYG fits with the rest of your holdings. Free to start — no credit card required for the trial.
Frequently asked questions
Is SHY or HYG better for dividend income?
It depends on your goals. SHY currently yields 3.62% Trailing Twelve Months (TTM) while HYG yields 6.12%. Higher yield means more current income per dollar invested, but may come with different risk, growth, or NAV characteristics. Compare total return and payout sustainability — not just the headline yield.
What is the difference between SHY and HYG?
iShares 1-3 Year Treasury Bond ETF (SHY) is an ETF listed on NASDAQ. iShares iBoxx $ High Yield Corporate Bond ETF (HYG) is an ETF listed on AMEX. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which is cheaper, SHY or HYG?
SHY has the lower expense ratio. SHY charges 0.15% a year and HYG charges 0.49%, a difference of $34 a year on a $10,000 investment.
Which has performed better, SHY or HYG?
Over the last 5 years, HYG has the higher total return with dividends reinvested: SHY returned 6.4% and HYG returned 11.2%. Past performance does not predict future returns.
Which is riskier, SHY or HYG?
Measured by the worst peak-to-trough decline over the last five years, HYG has been riskier: SHY fell as much as 5.4% and HYG as much as 15.8%. Their betas are 0.22 and 0.67.
How often do SHY and HYG pay dividends?
Both pay monthly. The most recent payments were $0.2410 for SHY and $0.3416 for HYG.
How much income does $10,000 in SHY vs HYG generate?
At current TTM yields, $10,000 in SHY would generate roughly $30.20 per month ($362 annually). The same amount in HYG would produce about $50.97 per month ($612 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both SHY and HYG?
Yes. Many income investors hold both to diversify strategy or index exposure. Whether the combination actually diversifies depends on overlapping holdings and factor exposure. Model both inside Dividend Wealth to see combined income, sector mix, and forecast impact.
Where can I compare SHY vs HYG with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how SHY and HYG fit alongside the rest of your portfolio. A 14-day free trial of Standard is available with no credit card required; a limited Free plan is also available.
Related comparisons
For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.