What is the difference between yield and total return for bond ETFs?

Yield is the income paid by the bonds in the ETF. Total return combines income yield plus price change — when rates rise, bond prices fall, creating a negative price return that can more than offset the yield income. In 2022, TLT's yield was positive but its price fell so much that total return was deeply negative.

How should I use TLT and SHY in a portfolio?

SHY is appropriate as a low-risk cash substitute or as the defensive bond allocation for investors wanting minimal interest rate risk. TLT is appropriate as a specific rate-direction trade or as a recession hedge — its high duration means it gains significantly if growth slows and rates fall. Most long-term investors use intermediate-duration bonds (AGG, BND, IEF) rather than the extremes of TLT or SHY.

What is the yield curve and why do TLT and SHY yields differ?

The yield curve plots interest rates for bonds of different maturities — normally, longer maturities have higher yields (upward sloping) to compensate for the additional interest rate risk and inflation uncertainty over time. TLT (20+ year bonds) normally yields more than SHY (1-3 year bonds), though the yield curve has been inverted (short rates higher than long rates) during certain periods like 2022-2024.

brimindinvest.com / compare / tlt-vs-shyLIVE

TLT

iShares 20+ Year Treasury Bond ETF · Fixed Income - Long-Term U.S. Treasury Bonds / ETF

$85.77

N/A this month

VERSUS

⟷

COMPARE

SHY

iShares 1-3 Year Treasury Bond ETF · Fixed Income - Short-Term U.S. Treasury Bonds / ETF

$81.99

+0.24% this month

Scoreboard verdict

Across expense ratio, momentum, yield, fund size, risk

TLT

0

SHY

0

MIXED SETUP

Comparison scoreboard

MIXED SETUP

Exp. Ratio

TLT N/A

SHY 0.15%

1Y Return

TLT N/A

SHY +3.10%

Div. Yield

TLT N/A

SHY 3.71%

AUM

TLT N/A

SHY $25.43B

Beta

TLT N/A

SHY 0.05

Metrics last refreshed: 6/20/2026

Quick take

TLT vs SHY Stock Comparison: AI Score, Valuation, Performance and Upside

TLT and SHY represent opposite ends of the U.S. Treasury yield curve — TLT as the high-duration long-bond rate bet and SHY as the near-cash short-term Treasury stability vehicle. TLT provides large return potential (positive or negative) from rate direction, while SHY provides yield with minimal price volatility.

TLT vs SHY is the duration spectrum comparison in U.S. Treasuries — long-duration rate sensitivity versus short-duration stability, serving fundamentally different portfolio purposes along the yield curve.

Live analysis · updated 6/20/2026

TLT and SHY are closely matched — they split the tracked metrics evenly.

Normalized 1Y performance

TLT

SHY

Not enough data to chart yet.

Recent returns

TLT

SHY

Who should consider this stock?

TLT may suit investors who:

→Are making a rate-direction bet, expecting long-term interest rates to decline from current levels
→Want to hedge equity portfolio risk with an asset that historically performs well in recession and risk-off environments
→Need long-duration Treasury bond exposure for liability matching (pension funds, insurance) or duration management purposes

SHY may suit investors who:

→Want a liquid, low-volatility U.S. Treasury exposure as a cash management alternative or short-term parking vehicle
→Seek near-zero interest rate duration risk in their bond allocation while still earning government bond yields
→Are waiting for better opportunities to deploy capital while maintaining liquidity and government bond safety

Performance & AI score

Metric	TLT	SHY
ETF score	30.0	38.0
Latest close	$85.77	$81.99
1M return	N/A	+0.24%
6M return	N/A	+0.58%
1Y return	N/A	+3.10%

$10,000 invested — hypothetical growth (dividends reinvested)

How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?

Period	TLT	SHY
1Y ago	N/A	$10.7K (+7.0%) started 2025-06-18
5Y ago	N/A	$12.63K (+26.3%) started 2021-06-18
10Y ago	N/A	$14.66K (+46.6%) started 2016-06-20

Hypothetical — past performance does not guarantee future results.

Fund characteristics

Metric	TLT	SHY
Expense ratio	N/A	0.15%
Total assets (AUM)	N/A	$25.43B
Dividend yield	N/A	3.71%
Trailing P/E	N/A	3726.82
Beta	N/A	0.05
52-week change	N/A	3.10%

Risk & fund metrics

Metric	TLT	SHY
1Y return	N/A	+3.10%
6M return	N/A	+0.58%
1M return	N/A	+0.24%
1Y Sharpe ratio	N/A	-1.04
Beta	N/A	0.05
Dividend yield	N/A	3.71%
5Y CAGR	N/A	+1.76%

Drawdown & downside risk

Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.

1Y risk snapshot

TLT max drawdownN/A

SHY max drawdown0.89%

TLT max wkly dropN/A

SHY max wkly drop0.42%

5Y risk snapshot

TLT max drawdownN/A

SHY max drawdown5.71%

TLT max wkly dropN/A

SHY max wkly drop1.26%

10Y risk snapshot

TLT max drawdownN/A

SHY max drawdown5.71%

TLT max wkly dropN/A

SHY max wkly drop1.26%

Performance metrics by period

Period	Metric	TLT	SHY
1Y	Growth	N/A	+3.10%
	CAGR	N/A	+3.11%
	Sharpe ratio	N/A	-1.04
	Max drawdown	N/A	0.89%
	Max daily drop	N/A	0.30%
	Max wkly drop	N/A	0.42%
5Y	Growth	N/A	+9.12%
	CAGR	N/A	+1.76%
	Sharpe ratio	N/A	-1.37
	Max drawdown	N/A	5.71%
	Max daily drop	N/A	0.51%
	Max wkly drop	N/A	1.26%
10Y	Growth	N/A	+17.62%
	CAGR	N/A	+1.64%
	Sharpe ratio	N/A	-1.82
	Max drawdown	N/A	5.71%
	Max daily drop	N/A	0.51%
	Max wkly drop	N/A	1.26%

Fund overview

Category	TLT	SHY
Fund name	TLT	iShares 1-3 Year Treasury Bond ETF
Type	ETF	ETF
Expense ratio	N/A	0.15%
Total assets (AUM)	N/A	$25.43B
Dividend yield	N/A	3.71%

TLT strengths

→Zero credit risk — U.S. Treasury bonds carry the full faith and credit of the U.S. government, making TLT a pure interest rate product
→Significant positive total return potential when long-term interest rates fall (rates down = bond prices up)
→Classic flight-to-safety asset in equity bear markets as investors seek government bond safety and rates fall with slowing growth

SHY strengths

→Very low duration (~2 years) means minimal price volatility from interest rate changes — much more stable NAV than TLT
→U.S. Treasury credit quality with slightly higher yield than money market funds or cash equivalents
→Highly liquid with tight bid-ask spreads — easy to enter and exit for cash management purposes

Risks to watch — TLT

→Extreme interest rate sensitivity — TLT's long duration (17-20 years) means a 1% rise in rates causes roughly a 17-20% price decline
→Experienced major losses in 2022 when rates rose rapidly from near-zero — TLT fell over 30% in 2022
→Investors should understand TLT as a rate direction trade, not a stable fixed income allocation, unless they specifically need long-duration government bond exposure

Risks to watch — SHY

→Short maturities mean SHY's yield closely tracks the Federal Reserve's short-term rate policy — when the Fed cuts rates, SHY's income yield quickly declines
→Very low total return potential compared to longer-duration bonds in rate-declining environments — SHY doesn't benefit much from rate cuts
→With near-zero interest rate risk, SHY is more of a cash management tool than a portfolio return generator

Frequently asked questions

In 2022, the Federal Reserve raised interest rates from near 0% to 4.25-4.5% to combat surging inflation — one of the fastest rate-hiking cycles in history. Since TLT holds bonds with 20+ year maturities and very high duration, these rate increases caused its price to fall over 30% in 2022, one of the worst years for long-duration bonds on record.

AI Prediction SignalNext 5 trading days

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TLT

+2.8%BUY

SHY

+1.1%HOLD

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