SHY ETF ANALYSIS

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SHY ETF FUNDAMENTALS
SHY ETF PERFORMANCE

SHY ISSUER

The iShares 1-3 Year Treasury Bond ETF (SHY) is managed by BlackRock Fund Advisors (BFA), a renowned leader in the asset management industry. Established with the aim to track the performance of the ICE® U.S. Treasury 1-3 Year Bond Index, SHY focuses on U.S. Treasury securities with remaining maturities of greater than or equal to one year and less than three years. BFA employs an indexing approach for the fund, striving to minimize costs and achieve efficient tracking of the Underlying Index. SHY offers investors a low-risk option to gain exposure to short-term U.S. government bonds, providing stability and income potential to their portfolios.

SHY DIVIDEND

The iShares 1-3 Year Treasury Bond ETF (SHY) offers a conservative income option with its dividend distribution strategy. This ETF primarily invests in short-term U.S. Treasury bonds, making it a relatively low-risk investment choice. Dividends from SHY are typically distributed on a monthly basis, providing investors with a steady stream of income. The dividend eligibility is straightforward, as it is based on the interest payments received from the underlying Treasury bonds. With a focus on capital preservation and consistent income, SHY is a suitable choice for investors seeking stability in their portfolios.

SHY TRACKING

Tracking the ICE® U.S. Treasury 1-3 Year Bond Index, the iShares 1-3 Year Treasury Bond ETF (SHY) focuses on mirroring the performance of U.S. Treasury securities with remaining maturities ranging from one year to three years. This ETF comprises 94 issues from the Underlying Index as of February 28, 2023, which consist of publicly-issued U.S. Treasury securities denominated in U.S. dollars and exclude inflation-linked securities, Treasury bills, and more. SHY employs a representative sampling indexing strategy, aiming to provide investors with a cost-effective and tax-efficient way to gain exposure to short-term U.S. Treasury bonds while maintaining liquidity and low portfolio turnover.

SHY CORRELATION

The correlation aspect of the iShares 1-3 Year Treasury Bond ETF (SHY) is known for its strong relationship with short-term U.S. Treasury bonds. As SHY aims to track the ICE U.S. Treasury 1-3 Year Bond Index, its correlation with this specific bond market segment is very high. Investors often utilize SHY for its stability and low-risk profile, particularly during uncertain economic conditions or when seeking short-term fixed-income exposure. To gain deeper insights into SHY's correlations with other assets and to explore overlapping trends, investors can leverage ETF Insider's web app, which offers comprehensive data visualization tools for studying various U.S. ETFs and their relationships with different market segments and assets.

SHY SECTOR

The iShares 1-3 Year Treasury Bond ETF (SHY) primarily invests in U.S. Treasury securities with remaining maturities between one and three years. This sector offers investors a relatively safe haven for their funds with minimal credit risk, as it focuses on government-backed debt. The shorter maturity bonds held within SHY make it less sensitive to interest rate fluctuations compared to longer-term bond ETFs, making it a popular choice for those seeking capital preservation and short-term income generation.

SHY EXPOSURE

The Innovative Companies ETF (ICE) is an actively managed exchange-traded fund that primarily invests in U.S.-listed equity securities of companies classified as Innovative Companies. These Innovative Companies are determined by the fund's sub-adviser, Plato’s Philosophy LLC, based on their involvement in developing new products or services, technological advancements, consumer engagement, and disruptive business growth strategies that are expected to have a significant impact on their respective markets or industries. The ETF aims to capitalize on companies with pricing power, as demonstrated by their ability to potentially increase prices without a corresponding drop in demand, and it may also use targeted ETFs for macro-economic hedging against specific market risks.

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FREQUENTLY ASKED QUESTIONS

Can you explain the correlation of SHY with the U.S. equity market?
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How does SHY provide exposure to the U.S. equity market?
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How does SHY's dividend strategy compare to other funds like QQQ and IWM?
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What does SHY mean on the stock market?
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What does SHY stand for on the stock market?
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What is the sector composition of SHY?
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