Shetland Pony - Perhaps the oldest breed of horse in Britain. Named after the islands where it originated, it is now one of the most popular ponies in the world. The little Shetland is probably so shaggy because it was conditioned by its environment. The Shetland Islands, lying off the northern coast of Scotland, are mostly barren and have a harsh climate. For many centuries the Shetland Pony lived in the open, protected from the elements only by this thick hair, long mane, and forelocks.