Two of the market's most popular income ETFs compared side-by-side. See which one fits your yield strategy.
What this means: Both SHYM and XLE fall intoTier 2: Yield Plus. This suggests they share a similar risk profile and volatility expectation.
| Metric | SHYM | XLE |
|---|---|---|
| Total Return (1Y) | 1.72% | 0.00% |
| NAV Change (1Y) | -3.58% | 0.00% |
| Max Drawdown | -8.75% | 0.00% |
| Beta | - | - |
* Returns include dividend reinvestment. Drawdown calculates peak-to-trough decline over trailing 12 months.
SHYM (BlackRock ETF Trust II - iShares Short Duration High Yield Muni Active ETF) is a conservative dividend growth fund managed by iShares. It focuses on generating income through strategic holdings. With significant capital, this fund has been operational since its inception.
Strategy: Focuses on quality dividend-paying companies with strong balance sheets and consistent payout histories.
XLE (State Street Energy Select Sector SPDR ETF) is a conservative dividend growth fund managed by SPDR. It focuses on generating income through strategic holdings. With $33.0B in assets under management, this fund has been operational since its inception.
Strategy: Focuses on quality dividend-paying companies with strong balance sheets and consistent payout histories.
In the head-to-head battle of SHYM vs XLE, the choice depends on your specific goal. SHYM wins for Immediate Income with a 5.30% yield. However, SHYM is the better choice for Long-Term Growth due to superior total return performance.
Which fund is safer for retirement income? We analyze the yield sustainability and structural risk.
The Bottom Line Question: If you invest $100,000 today, how much cash will you actually receive each month? Here's the exact math:
SHYM
Annual Yield: 5.30%
$442/mo
($5,299/year)
Frequency: monthly
XLE
Annual Yield: 2.77%
$231/mo
($2,767/year)
Frequency: quarterly
Income Gap: SHYM generates $2,532/year more than XLE on the same $100k investment.
Over 20 years, that's $50,645 in additional cash flow (before reinvestment).
Context Matters: Higher income doesn't always mean better investment. Review the "Yield Trap" and "Total Return" sections above—you want income that's sustainable, not just headline-grabbing.
Historical data reveals how these funds behave during market stress. SHYM has delivered a superior Total Return of 1.72% over the past year.
Every investor has a unique risk profile. Use our Portfolio Intelligence tool to see the impact of adding these ETFs to your holdings.