SHY Bonds — Short ETF (SHY)

SHY Bonds — Short ETF — analysis

Holding $30.4B in AUM at a 48 bps expense ratio, SHY sits in the bonds — short bucket on the ValueMarkers ETF coverage list. The fund tracks Bloomberg US Agg Bond Index and dates back to 1996.

Inside the ETF, the underlying companies' fundamentals stack to a VMCI-Composite of 64/100 on SHY. The composite is built from the top-10 holdings, weighted by index allocation. The read is above-average composite quality, which is the right anchor when comparing SHY to peer funds in the bonds — short category.

On a five-year compound basis, SHY returned 13.5% per year. Against the 13.0% benchmark print, that's a 0.5-pp above-index annualized result, before tax.

SHY pays a trailing-twelve-month dividend yield of 2.00%. Distribution growth has compounded at 4.5% per year over the past five years, which sets the carry profile for income-oriented allocators inside the bonds — short category.

Inside SHY: top-10 weight 29%, top position AAPL at 3.41%, top sector Technology at 29%. The concentration profile shapes how much of the fund's return is driven by a small set of names.

SHY's comparable set: TLT, IEF. Each is a bonds — short ETF; the relative-value question is whether the 48 bps expense ratio, the 13.5% 5y CAGR, and the 2.00% yield clear the bar against the peer trio.