Dividend comparison
TLT vs SHY: Which Is Better for Income?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for iShares 20+ Year Treasury Bond ETF and iShares 1-3 Year Treasury Bond ETF, side by side. Updated October 21, 2026.
TLT vs SHY: key differences
The short answer, from the latest data on this page.
- Fees. Both charge about 0.15% a year, so cost is not what separates them.
- Income. TLT pays more income, yielding 4.86% over the last twelve months versus 3.62% for SHY. That is about $123 more a year on $10,000. Both pay monthly.
- Performance. Over the last 5 years, SHY returned 6.4% versus -35.4% for TLT, with dividends reinvested. $10,000 would have grown to $10,644 in SHY and $6,462 in TLT.
- Risk. TLT has been the bumpier ride. Its worst peak-to-trough decline over the last 5 years was -43.7%, against -5.4% for SHY.
- Diversification. SHY holds 90 positions and TLT holds 47.
- Dividend growth. SHY grew its yearly payout 93.9% a year over the last 4 years, versus 14.9% for TLT.
Bottom line: TLT fits better if you care most about more income today. SHY fits better if you care most about stronger 5-year returns, smaller drawdowns, faster dividend growth and broader diversification.
Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
| Metric | TLT iShares 20+ Year Treasury Bond ETF | SHY iShares 1-3 Year Treasury Bond ETF |
|---|---|---|
| Dividend yield (TTM) | 4.86% | 3.62% |
| Dividend / share (TTM) | $3.89 | $2.95 |
| Payout frequency | Monthly | Monthly |
| Last dividend | $0.3116 on Oct 6, 2026 | $0.2410 on Oct 6, 2026 |
| Ex-dividend date | Oct 1, 2026 | Oct 1, 2026 |
| Dividend growth (CAGR) | 14.9% over 4 yrs | 93.9% over 4 yrs |
| Price | $80.13 | $81.30 |
| Dividend growth streak | 4 years | — |
| Beta | 2.40 | 0.22 |
| Max drawdown (5Y) | -43.7% | -5.4% |
| Market cap | $40.47B | $27.14B |
| Exchange | NASDAQ | NASDAQ |
| Expense ratio | 0.15% | 0.15% |
| Assets under management | $46.45B | $27.17B |
| Number of holdings | 47 | 90 |
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.
TLT
$40.47/mo
$486 /yr at 4.86% yield
SHY
$30.20/mo
$362 /yr at 3.62% yield
Dividend history
Total dividends paid per share in each calendar year. TLT pays monthly; SHY pays monthly.
| Year | TLT | SHY |
|---|---|---|
| 2025 | $3.8607 | $3.1524 |
| 2024 | $3.7549 | $3.2098 |
| 2023 | $3.3424 | $2.4525 |
| 2022 | $2.6563 | $1.0541 |
| 2021 | $2.2165 | $0.2232 |
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 $6,462 in TLT and $10,644 in SHY.
| Period | TLT | SHY |
|---|---|---|
| 1 month | -1.38% | 0.07% |
| 3 months | -5.19% | -0.84% |
| Year to date | -8.07% | -1.84% |
| 1 year | -11.85% | -1.56% |
| 3 years | 5.30% | 9.14% |
| 5 years | -35.38% | 6.44% |
- TLT
- SHY
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.
- TLT
- SHY
Quick verdict
TLT fits better if you care most about more income today. SHY fits better if you care most about stronger 5-year returns, smaller drawdowns, faster dividend growth 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 TLT vs SHY fits with the rest of your holdings. Free to start — no credit card required for the trial.
Frequently asked questions
Is TLT or SHY better for dividend income?
It depends on your goals. TLT currently yields 4.86% Trailing Twelve Months (TTM) while SHY yields 3.62%. 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 TLT and SHY?
iShares 20+ Year Treasury Bond ETF (TLT) is an ETF listed on NASDAQ. iShares 1-3 Year Treasury Bond ETF (SHY) is an ETF listed on NASDAQ. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which is cheaper, TLT or SHY?
They cost about the same: TLT charges 0.15% a year and SHY charges 0.15%.
Which has performed better, TLT or SHY?
Over the last 5 years, SHY has the higher total return with dividends reinvested: TLT returned -35.4% and SHY returned 6.4%. Past performance does not predict future returns.
Which is riskier, TLT or SHY?
Measured by the worst peak-to-trough decline over the last five years, TLT has been riskier: TLT fell as much as 43.7% and SHY as much as 5.4%. Their betas are 2.40 and 0.22.
How often do TLT and SHY pay dividends?
Both pay monthly. The most recent payments were $0.3116 for TLT and $0.2410 for SHY.
How much income does $10,000 in TLT vs SHY generate?
At current TTM yields, $10,000 in TLT would generate roughly $40.47 per month ($486 annually). The same amount in SHY would produce about $30.20 per month ($362 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both TLT and SHY?
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 TLT vs SHY with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how TLT and SHY 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.
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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.