ETF Comparison

BND vs SGOV: How Much Rate Risk Do You Want?

A head-to-head comparison of Vanguard's Total Bond Market ETF and the iShares 0-3 Month Treasury Bond ETF covering yield, duration, drawdown, and when each fits.

Updated October 2, 2026

How these figures are calculated: methodology.

Best for

BNDInvestors who want core bond-market duration and can accept price swings when yields rise.
SGOVInvestors who want cash in 0-3 month T-bills with almost no duration risk.

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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

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

BND has lagged SGOV over the trailing twelve months, posting a -2.04% total return against 3.79%. The lead holds up over 5 years too: SGOV has compounded at 3.79% a year, against -0.71% for BND. SGOV has been the steadier holding, though — annualized volatility of 0.2% against 5.1% for BND. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
Symbol	YTD cumulative	1Y cumulative	3Y annualized	5Y annualized	Since May 2020	Volatility	Sharpe	Sortino	Max drawdown
BND	-2.63%	-2.04%	4.29%	-0.71%	-0.48%	5.1%	-0.06	-0.08	-4.7%
SGOV	2.73%	3.79%	4.55%	3.79%	2.99%	0.2%	-0.15	-0.24	-0.0%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 2, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since May 2020” measures every fund from May 28, 2020 — the start of shared available history — 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.

Short T-bill ETFs, from our catalog

SGOV tracks ICE 0-3 Month US Treasury Securities Index and pays monthly at a forward distribution rate of 3.60% with an expense ratio of 0.09%.

BIL, another short Treasury ETF in this catalog, tracks Bloomberg 1-3 Month U.S. Treasury Bill Index at a forward distribution rate of 3.45% (Monthly) with an expense ratio of 0.1353%.

These are interest-like cash rates, not equity dividends. A covered-call or dividend ETF can pay more, and it can also lose principal.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
Metric	BND	SGOV
Full name	Vanguard Total Bond Market ETF	iShares 0-3 Month Treasury Bond ETF
Issuer	Vanguard	iShares
Underlying index	Bloomberg U.S. Aggregate Float Adjusted Index	ICE 0-3 Month US Treasury Securities Index
Last Close	$69.94 as of October 2, 2026	$100.44 as of October 2, 2026
Distribution rate	4.26%	3.60%
Trailing 12-month yield	4.20%	3.65%
Distribution Safety Score™	100	79
Safety-Adjusted Yield	4.26%	2.84%
Expense ratio	0.03%	0.09%
AUM	$162B	$112B
Distribution frequency	Monthly	Monthly
Objective	Track the Bloomberg U.S. Aggregate Float Adjusted Index for broad U.S. bond exposure.	Seeks to track an index of U.S. Treasury obligations maturing in three months or less, investing at least 90% of assets in U.S. Treasury securities.
Asset class	Fixed Income	Fixed Income
Inception date	04/03/2007	05/26/2020
Beta	0.98	-0.0029
Last dividend	$0.2485 declared, pays 10/05/2026	$0.301 declared, pays 10/06/2026
Ex-dividend date	10/01/2026	10/01/2026

Bottom lineChoose BND if you want core bond-market duration and can accept price swings when yields rise. Choose SGOV if you want cash in 0-3 month T-bills with almost no duration risk.

BND vs SGOV: duration is the whole decision

Both are bond funds. BND holds the broad US investment-grade market and moves when rates move. SGOV rolls 0-3 month T-bills and barely marks to market. The yield gap is duration and credit, not a better cash vehicle.

	BND	SGOV
What it holds	Bloomberg U.S. Aggregate Float Adjusted Index	ICE 0-3 Month US Treasury Securities Index
Rate risk	Years of duration; price falls when yields rise	Bills this short barely move
Credit risk	Treasuries, agency MBS, and investment-grade corporates	US Treasury bills only
Expense ratio	0.03%	0.09%
Distribution rate	4.26%	3.60%
Typical role	Core bond sleeve	Cash / T-bill parking

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Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

Vanguard

ETFs116

Total AUM$4676B

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

Vanguard is one of the largest and most established ETF issuers, known for low-cost, broadly diversified fund offerings built on passive indexing principles. Their lineup spans multiple asset classes and strategies, including core equity and bond index funds, dividend-focused portfolios, ESG-screened options, factor-based strategies, sector exposure, target-date retirement funds, and international investments across developed and emerging markets. The platform is characterized by its emphasis on accessibility and cost efficiency across a comprehensive range of fund families, serving both individual investors seeking broad market exposure and those pursuing specific income, sustainability, or thematic objectives.

See our curated list of related YouTube videos on BND.

See all Vanguard ETFs

iShares

ETFs466

Total AUM$4683B

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 SGOV.

See all iShares ETFs

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Quick verdict

BND (Vanguard Total Bond Market ETF) and SGOV (iShares 0-3 Month Treasury Bond ETF) are both monthly-pay dividend ETFs, but they take different approaches.

BND offers the higher yield at 4.26% vs 3.60% for SGOV. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

BND is cheaper with an expense ratio of 0.03% compared to 0.09%.

They have different reference exposures: BND is linked to Bloomberg U.S. Aggregate Float Adjusted Index while SGOV is linked to ICE 0-3 Month US Treasury Securities Index, which means their performance drivers differ.

BND is the larger fund by assets ($162B), but assets alone do not establish trading costs or liquidity.

Who should choose each?

Choose BND

Vanguard Total Bond Market ETF

Want core bond duration — the broad US investment-grade market, which moves when rates do.
Want higher current income — BND yields 4.26% vs 3.60% for SGOV.
Want fixed-income ballast that cushions equity drawdowns.
Want to keep costs low — a 0.03% expense ratio vs 0.09% for SGOV.

Choose SGOV

iShares 0-3 Month Treasury Bond ETF

Want T-bill cash — bills this short barely mark to market.
Want fixed-income ballast that cushions equity drawdowns.
Prefer lower volatility — a beta of -0.0 vs 1.0 for BND.

Not sure? Use the income calculator and snapshot above to weigh these trade-offs against your own goals.

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Deep dive

Yield & income

On a $10,000 investment, BND would generate roughly $35.50 cash per distribution, while SGOV would produce $30.00 cash per distribution, at current distribution rates. Both pay monthly distributions.

BND yield4.26%

SGOV yield3.60%

Cash diff on $10K$5.50

Cost & efficiency

Over 10 years on $10,000, BND would cost approximately $30 in fees vs $90 for SGOV (simplified, not compounded). The $60.00 difference may be offset by yield or performance.

BND ER0.03%

SGOV ER0.09%

Strategy & risk

BND tracks Bloomberg U.S. Aggregate Float Adjusted Index with a bonds approach, while SGOV tracks ICE 0-3 Month US Treasury Securities Index with a bonds approach. Beta is 0.98 for BND and -0.0029 for SGOV, making SGOV the less volatile of the two by this measure.

BND beta0.98

SGOV beta-0.0029

Fund details

BND is managed by Vanguard (launched 04/03/2007) with $162B in assets. SGOV is managed by iShares (launched 05/26/2020) with $112B in assets.

BND AUM$162B

SGOV AUM$112B

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Frequently asked questions

What is the difference between BND and SGOV?

Duration — how much the price moves when rates change — is the difference. BND tracks Bloomberg U.S. Aggregate Float Adjusted Index, holding Treasuries, agency mortgage bonds and investment-grade corporates that run out for years, so its share price rises when yields fall and drops when they rise. SGOV holds ICE 0-3 Month US Treasury Securities Index — paper that matures within about three months and is rolled continuously, so its price barely moves and its payout follows policy rates within weeks. (Beta is not the measure here — it tracks sensitivity to the stock market, not to rates; the relevant figure is duration, which the funds publish on their own fact sheets.) BND distributes 4.26% and SGOV 3.60% as of October 2026, but the yield gap is not the point: BND is taking duration and credit risk to earn it, and can post a negative total return in a rising-rate year, which is not a risk the other one runs.

What is the current distribution rate for BND and SGOV?

BND currently distributes 4.26% and SGOV 3.60%, based on fund data updated October 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is BND or SGOV better for dividend income?

It depends on your goals. BND 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.

Can I hold both BND and SGOV?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is BND or SGOV safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — BND scores 100, SGOV scores 79, so BND's payout currently looks the more resilient of the two. SGOV has also shown lower price volatility (beta -0.00 vs 0.98 for BND). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, BND or SGOV?

BND has an expense ratio of 0.03% while SGOV charges 0.09%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in BND vs SGOV generate?

At current rates, $10,000 in BND would generate roughly $35.50 cash per distribution ($426.00 annually). The same in SGOV would produce about $30.00 cash per distribution ($360.00 annually).

Which has performed better historically, BND or SGOV?

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Dividend dates and history

BND vs SGOV — at a glance

Generated October 3, 2026.

Overview

BND and SGOV are both fixed-income ETFs tracking U.S. Treasury and bond indexes, but they operate at opposite ends of the maturity spectrum. BND holds a broad portfolio of investment-grade bonds across the full maturity curve (the Bloomberg Aggregate), while SGOV invests exclusively in Treasury securities maturing within three months. The choice between them hinges on yield appetite versus capital stability and interest-rate sensitivity.

How they differ

The biggest difference is maturity exposure. BND's underlying index spans Treasuries, investment-grade corporates, and mortgage-backed securities across all maturities, giving it meaningful duration and price sensitivity to rate moves. SGOV holds only ultra-short Treasury bills—securities that mature in 90 days or less—making it functionally a cash proxy with minimal principal risk but also minimal yield.

That structural gap explains the yield and risk trade-offs. BND offers 4.26% distribution rate versus 3.60% for SGOV, but BND's beta of 0.98 reflects exposure to interest-rate moves, while SGOV's beta of -0.0029 is essentially flat. If rates rise, BND's NAV will likely fall; SGOV will barely budge. SGOV's slightly higher expense ratio of 0.09% versus 0.03% reflects the cost of active Treasury market management; BND's massive $162B asset base versus SGOV's $112B gives it deeper economies of scale. Both distribute monthly and track government-issued or government-backed indexes.

Who each is best for

BND: Fits income investors seeking a steady current yield with willingness to accept moderate interest-rate risk, particularly those treating it as a core fixed-income holding or a bond fund replacement in a diversified portfolio.

SGOV: Designed for investors prioritizing capital stability and liquidity over yield—those parking cash in a higher-yielding alternative to money-market funds or seeking a near-zero-duration sleeve in a bond allocation.

Key risks to know

Interest-rate risk in BND. BND's broad maturity exposure means its NAV swings with the yield curve. A sharp rate rise will erode principal; a fall will appreciate it. SGOV, by contrast, has negligible duration and is immune to this risk because its holdings mature so quickly they reprice at par.

Reinvestment-rate dependency for SGOV. As Treasury bills mature every few months, returns depend on rolling into new bills at prevailing rates. In a declining-rate environment, SGOV's distribution will compress; BND's longer-duration holdings provide more insulation from that pressure.

Credit risk in BND's corporate and mortgage holdings. BND includes investment-grade corporate and agency mortgage-backed securities alongside Treasuries. SGOV eliminates this entirely by holding only direct Treasury obligations, making it a pure sovereign-credit instrument.

NAV volatility mismatch. BND's price moves daily with bond-market sentiment and rates. Investors holding it short-term may face mark-to-market losses. SGOV's price stays pinned near par because its holdings are about to mature anyway.

Bottom line

If you need current income and can tolerate interest-rate fluctuations, BND's 4.26% yield and 50006719883 larger asset base deliver broad bond exposure at minimal cost. If you want a cash holding that beats money-market rates without principal risk, SGOV trades 3.60% yield for near-zero duration and Treasury-only safety. Past performance doesn't predict future results; forward yields depend on how Treasury and bond rates evolve.

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

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These comparisons follow the Dividend Vision methodology.