iShares Core 1-5 Year USD Bond (ISTB)

iShares Core 1-5 Year USD Bond ETF (NASDAQ: SHY) Overview

Profile:

This ETF invests in U.S. dollar-denominated investment-grade corporate and government bonds with maturities of 1 to 5 years. It seeks to track the performance of the Bloomberg Barclays US 1-5 Year Treasury Note and Bond Index.

Objective:

The main objective of iShares Core 1-5 Year USD Bond ETF is to provide investors with a low-cost and convenient way to access the investment-grade short-term bond market.

Issuer:

iShares, a leading global provider of exchange-traded funds (ETFs) with over $2.9 trillion in assets under management, issues this ETF.

Market Share:

SHY is the second-largest bond ETF in the United States, with over $36.5 billion in AUM as of November 13, 2023.

Total Net Assets:

SHY has $36.5 billion in assets under management as of November 13, 2023.

Moat:

• Low-cost: The expense ratio of 0.04% makes it one of the most affordable short-term bond ETFs available.
• Liquidity: With an average daily trading volume exceeding 20 million shares, SHY offers high liquidity.
• Track record: iShares has a strong reputation for managing bond ETFs and a long history of successfully tracking its target index.

Financial Performance:

• SHY has a 3-year annualized return of 2.06% as of November 10, 2023.
• It has outperformed its benchmark index, the Bloomberg Barclays US 1-5 Year Treasury Note and Bond Index, by 0.06% over the same period.

Growth Trajectory:

• With rising interest rates, short-term bonds are expected to experience higher returns than long-term bonds.
• The ETF's low-cost nature and strong track record should continue to attract investors seeking exposure to this segment of the bond market.