ETF Comparison

BIL vs SHY: Which Is the Better Pick in 2026?

A head-to-head comparison of SPDR Bloomberg 1-3 Month T-Bill ETF and iShares 1-3 Year Treasury Bond ETF covering yield, cost, risk, and income potential.

Data updated July 9, 2026

State Street

ETFs182

Total AUM$2113B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

State Street Global Advisors (SSGA) is one of the largest ETF providers globally, known for its flagship SPDR suite of exchange-traded products that serve both institutional and retail investors across a broad range of asset classes. Their 88-fund lineup spans diverse strategies including sector exposure (Select Sector SPDR), income generation (Income and Select Sector SPDR Premium Income families), commodities (including the widely-held GLD gold ETF), bonds, ESG-focused investments, and thematic allocations, with popular tickers like DIA (Diamonds Trust), FEZ (Eurozone exposure), and JNK (high-yield bonds) among their most recognized funds. The issuer is characterized by its comprehensive coverage across multiple market segments and its emphasis on both traditional index-based products and specialized strategies like covered call income funds and factor-based investing.

See our curated list of related YouTube videos on BIL.

See all State Street ETFs

iShares

ETFs481

Total AUM$4452B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

iShares is one of the largest ETF providers globally, known for offering a broad, diversified lineup of exchange-traded funds across multiple asset classes and investment strategies. The company operates 215 funds spanning 15 distinct families, including popular offerings in dividend income, covered call strategies, bonds, equities, ESG-focused investments, and factor-based approaches, with widely-held tickers like AGG (bond), ACWI (global equity), and AOA (allocation). iShares is characterized by its comprehensive fund ecosystem that serves both core portfolio holdings and specialized investment strategies, making it a prominent player for investors seeking both traditional and alternative income-generating ETF solutions.

See our curated list of related YouTube videos on SHY.

See all iShares ETFs

Side-by-side snapshot

	BIL	SHY
Full name	SPDR Bloomberg 1-3 Month T-Bill ETF	iShares 1-3 Year Treasury Bond ETF
Issuer	State Street	iShares
Last Close	$91.46 as of July 9, 2026	$81.91 as of July 9, 2026
Distribution yield	3.51%	3.49%
Distribution Safety Score	—	70
Expense ratio	0.14%	0.15%
AUM	$47.8B	$25.3B
Distribution frequency	Monthly	Monthly
Underlying index	Bloomberg 1-3 Month U.S. Treasury Bill Index	ICE U.S. Treasury 1-3 Year Bond Index
Objective	Seeks to provide investment results that correspond to the price and yield performance of the Bloomberg 1-3 Month U.S. Treasury Bill Index. Provides pure short-term Treasury exposure with minimal credit risk.	Tracks the ICE U.S. Treasury 1-3 Year Bond Index.
Asset class	Fixed Income	Fixed Income
Inception date	05/25/2007	07/22/2002
Beta	0.06	0.22
Last dividend	$0.2676	$0.2383
Ex-dividend date	08/03/2026	07/01/2026

Bottom lineBIL and SHY are nearly interchangeable — both offer very similar treasury bills exposure with very similar cost and risk. The clearest tie-breaker is cost: BIL is cheaper at 0.14% vs 0.15%.

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

BIL has outpaced SHY over the trailing twelve months, posting a 3.22% total return against 2.47%. The lead holds up over 10 years too: BIL has compounded at 2.16% a year, against 1.57% for SHY. BIL has been the steadier holding, though — annualized volatility of 0.3% against 1.7% for SHY. Figures are total returns: price change plus every distribution reinvested.

Symbol	YTD	1Y	3Y	5Y	10Y	Since May 2007	Volatility	Sharpe	Sortino	Max drawdown
BIL	1.20%	3.22%	4.39%	3.36%	2.16%	1.35%	0.3%	-0.56	-0.68	-0.3%
SHY	0.01%	2.47%	4.01%	1.64%	1.57%	1.81%	1.7%	-0.33	-0.46	-1.0%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 9, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since May 2007” measures every fund from May 30, 2007 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Quick verdict

BIL (SPDR Bloomberg 1-3 Month T-Bill ETF) and SHY (iShares 1-3 Year Treasury Bond ETF) are both monthly-pay dividend ETFs, but they take different approaches.

BIL offers the higher yield at 3.51% vs 3.49% for SHY. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

BIL is cheaper with an expense ratio of 0.14% compared to 0.15%.

They track different benchmarks: BIL is linked to Bloomberg 1-3 Month U.S. Treasury Bill Index while SHY tracks ICE U.S. Treasury 1-3 Year Bond Index, which means their performance drivers differ.

BIL is the larger fund by assets ($47.8B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, BIL would generate roughly $29.25/month, while SHY would produce $29.08/month, at current distribution rates. Both pay monthly distributions.

BIL yield3.51%

SHY yield3.49%

Monthly diff on $10K$0.17

Cost & efficiency

Over 10 years on $10,000, BIL would cost approximately $140 in fees vs $150 for SHY (simplified, not compounded). The $10.00 difference may be offset by yield or performance.

BIL ER0.14%

SHY ER0.15%

Strategy & risk

BIL tracks Bloomberg 1-3 Month U.S. Treasury Bill Index with a money market approach, while SHY tracks ICE U.S. Treasury 1-3 Year Bond Index with a basket approach. Beta is 0.06 for BIL and 0.22 for SHY, indicating BIL is less volatile relative to the market.

BIL beta0.06

SHY beta0.22

Fund details

BIL is managed by State Street (launched 05/25/2007) with $47.8B in assets. SHY is managed by iShares (launched 07/22/2002) with $25.3B in assets.

BIL AUM$47.8B

SHY AUM$25.3B

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Frequently asked questions

Is BIL or SHY better for dividend income?

It depends on your goals. BIL currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between BIL and SHY?

BIL (SPDR Bloomberg 1-3 Month T-Bill ETF) tracks Bloomberg 1-3 Month U.S. Treasury Bill Index with a money market approach, while SHY (iShares 1-3 Year Treasury Bond ETF) tracks ICE U.S. Treasury 1-3 Year Bond Index with a basket approach. They are issued by State Street and iShares respectively.

Can I hold both BIL and SHY?

Yes. Many income investors hold both to diversify across different strategies and underlying indexes. This can reduce concentration risk while maintaining a strong income stream.

Which has lower fees, BIL or SHY?

BIL has an expense ratio of 0.14% while SHY charges 0.15%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in BIL vs SHY generate?

At current rates, $10,000 in BIL would generate roughly $29.25 per month ($351.00 annually). The same in SHY would produce about $29.08 per month ($349.00 annually).

Which has performed better historically, BIL or SHY?

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BIL vs SHY — at a glance

Generated July 2026 from current fund data.

Overview

BIL and SHY are both Treasury-focused ETFs with monthly distributions and similar expense ratios, but they cover different parts of the yield curve. BIL holds very short-term T-bills (1–3 months), while SHY holds Treasury bonds with 1–3 year maturities. The key distinction: BIL is a money-market fund offering near-cash stability, whereas SHY carries measurable interest-rate risk and duration exposure.

How they differ

The fundamental difference is maturity: BIL's average holding is just weeks old, while SHY's bonds stretch up to three years. This creates the second major gap—interest-rate sensitivity. SHY's beta of 0.23 means it will move with the bond market; BIL's beta of 0.06 signals minimal price volatility. Yields are nearly identical (3.51% for BIL, 3.49% for SHY), but they come from different sources: BIL's is almost pure short-rate carry, while SHY's reflects both short rates and a small duration premium. BIL is larger at $47.8B in AUM versus SHY's $25.3B, and BIL has been around since 2007, while SHY (launched in 2002) predates it.

Who each is best for

BIL: Fits investors seeking maximum stability and daily liquidity within a fixed-income allocation, willing to accept minimal yield above cash in exchange for rock-solid principal preservation and near-zero interest-rate risk.

SHY: Fits investors with a 1–3 year time horizon who want meaningful Treasury yield with moderate interest-rate sensitivity, and who can tolerate modest price fluctuations as bond markets reprrice.

Key risks to know

Duration risk (SHY). A 1% rise in Treasury yields would likely produce a 2%+ price decline; BIL would see negligible change. For investors planning to sell within one to two years, SHY's market price risk is material.

Reinvestment-rate risk (BIL). T-bill yields fluctuate monthly as the Fed adjusts rates and short-term supply changes. A fall in short rates could quickly lower BIL's 3.51% distribution, whereas SHY's longer duration provides more cushion from near-term rate volatility.

Opportunity cost in a rising-rate environment (BIL). If rates spike, BIL's portfolio turns over into higher-yielding bills almost immediately, but SHY's existing bonds lock in lower coupons—a disadvantage in rapid tightening cycles.

Bottom line

If you prioritize stability and don't need to chase yield, BIL's near-zero volatility and ample liquidity make it a cash-like holding. If you have a modest time horizon and can tolerate small price swings in exchange for a modest yield pickup, SHY's duration exposure may justify the trade-off. Both are high-quality, low-risk Treasury products; the choice hinges on how much interest-rate movement you can accept and how long you plan to hold.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

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