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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.

Data updated August 19, 2026

Best for

  • BNDInvestors who want higher current income (4.18% vs 3.66% for SGOV).
  • SGOVInvestors who want fixed-income ballast that steadies the portfolio when stocks fall.

Jump to the side-by-side numbers

Visual comparison

Key metrics

Projected income on $10K

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

Total returns

BND has lagged SGOV over the trailing twelve months, posting a 2.06% total return against 3.81%. The lead holds up over 5 years too: SGOV has compounded at 3.69% a year, against -0.39% for BND. SGOV has been the steadier holding, though — annualized volatility of 0.2% against 5.2% 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.
SymbolYTD1Y3Y5YSince May 2020Volatility Sharpe Sortino Max drawdown
BND-0.51%2.06%4.35%-0.39%-0.15%5.2%-0.04-0.06-4.7%
SGOV2.25%3.81%4.60%3.69%2.97%0.2%0.140.23-0.0%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 18, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since May 2020” measures every fund from May 28, 2020 — 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.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricBNDSGOV
Full nameVanguard Total Bond Market ETFiShares 0-3 Month Treasury Bond ETF
IssuerVanguardiShares
Last Close$72.22 as of August 19, 2026$100.57 as of August 19, 2026
Distribution yield4.18%3.66%
Distribution Safety Score™ 10073
Expense ratio0.03%0.09%
AUM$162B$103B
Distribution frequencyMonthlyMonthly
Underlying indexBloomberg U.S. Aggregate Float Adjusted IndexICE 0-3 Month US Treasury Securities Index
ObjectiveTrack 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 classFixed IncomeFixed Income
Inception date04/03/200705/26/2020
Beta0.98-0.0029
Last dividend$0.2515$0.3070
Ex-dividend date08/03/202608/03/2026

Bottom lineChoose BND if you want higher current income (4.18% vs 3.66% for SGOV). Choose SGOV if you want fixed-income ballast that steadies the portfolio when stocks fall.

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.

BNDSGOV
What it holdsBloomberg U.S. Aggregate Float Adjusted IndexICE 0-3 Month US Treasury Securities Index
Rate riskYears of duration; price falls when yields riseBills this short barely move
Credit riskTreasuries, agency MBS, and investment-grade corporatesUS Treasury bills only
Expense ratio0.03%0.09%
Distribution yield4.18%3.66%
Typical roleCore bond sleeveCash / 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$4703B

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
ETFs473
Total AUM$4710B

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 4.18% vs 3.66% 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 track different benchmarks: BND is linked to Bloomberg U.S. Aggregate Float Adjusted Index while SGOV tracks ICE 0-3 Month US Treasury Securities Index, which means their performance drivers differ.

BND is the larger fund by assets ($162B), which generally means tighter spreads and better liquidity.

Who should choose each?

Choose BND

Vanguard Total Bond Market ETF

  • Want higher current income — BND yields 4.18% vs 3.66% 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 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.

Deep dive

Yield & income

On a $10,000 investment, BND would generate roughly $34.83/month, while SGOV would produce $30.50/month, at current distribution rates. Both pay monthly distributions.

BND yield4.18%
SGOV yield3.66%
Monthly diff on $10K$4.33

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 $103B in assets.

BND AUM$162B
SGOV AUM$103B
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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 4.18% and SGOV 3.66% as of August 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 yield for BND and SGOV?

BND currently distributes 4.18% and SGOV 3.66%, based on fund data updated August 2026. Distribution yield 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 73, 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 $34.83 per month ($418.00 annually). The same in SGOV would produce about $30.50 per month ($366.00 annually).

Which has performed better historically, BND or SGOV?

BND has lagged SGOV over the trailing twelve months, posting a 2.06% total return against 3.81%. The lead holds up over 5 years too: SGOV has compounded at 3.69% a year, against -0.39% for BND. SGOV has been the steadier holding, though — annualized volatility of 0.2% against 5.2% for BND. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

BND vs SGOV — at a glance

Generated August 16, 2026.

Figures quoted in this analysis are from its generation date and may lag the live snapshot table above, which always shows the latest data.

Overview

BND and SGOV are both Treasury-backed bond ETFs tracking fixed-income indexes, but they serve nearly opposite roles in a portfolio. BND holds the full U.S. bond market—Treasuries, investment-grade corporates, mortgage-backed securities, and asset-backed securities—tracking the Bloomberg U.S. Aggregate Float Adjusted Index. SGOV holds only Treasury bills maturing within three months, tracking the ICE 0-3 Month US Treasury Securities Index. The gap between them is duration: BND carries meaningful interest-rate sensitivity; SGOV is a cash-like instrument.

How they differ

BND's most significant difference is its broad diversification across the entire investment-grade bond market, giving it 4.17% yield but also duration risk (beta of 0.98), meaning its price moves with rates. SGOV is duration-free—its negative beta of -0.0029 reflects near-zero rate sensitivity—because it holds only ultra-short Treasury paper. That safety costs yield: SGOV delivers 3.66%, a 51-basis-point haircut versus BND. Both charge minimal expenses (0.03% for BND, 0.07% for SGOV), but SGOV commands a much smaller asset base at $103B versus BND's $162B, and its distributions are fully backed by Treasury interest, while BND's mix includes credit risk from corporate and agency exposures.

Who each is best for

BND: Fits investors seeking meaningful current income from investment-grade bonds while accepting mild interest-rate risk and credit exposure across the U.S. bond market. Works for those building a core fixed-income allocation or supplementing equity portfolios.

SGOV: Fits investors prioritizing capital preservation and liquidity over yield—those using short-term Treasury bills as a cash substitute or a ballast against equity volatility. Designed for conservative allocations or intermediate parking of capital awaiting deployment elsewhere.

Key risks to know

  • Duration and rate risk (BND): BND's 0.98 beta means a 1% rise in longer-term interest rates will erode NAV by roughly 1%, since the fund holds bonds with average maturities well beyond the 3-month horizon. SGOV's near-zero beta shields it from this entirely.
  • Credit and concentration risk (BND): BND's exposure to corporate bonds, mortgage-backed securities, and agency debt introduces credit-spread risk. Widening corporate or real-estate credit spreads during recessions can pressure NAV independently of Treasury rates.
  • Reinvestment-yield risk (SGOV): SGOV's 3.66% yield assumes rollover of maturing bills into similar-rate securities. A sharp decline in Treasury yields would reduce forward distributions substantially.
  • AUM and liquidity: SGOV's $103B is far smaller than BND's $162B, which may affect trading tightness in volatile markets, though both remain highly liquid.

Bottom line

If you value a diversified income stream and can tolerate interest-rate headwinds, BND's broader market exposure and higher yield make sense. If you need a rate-insensitive cash alternative that still beats money-market fund returns, SGOV delivers that simplicity. Past performance does not predict future results.

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

Learn the method

The metrics behind this comparison, explained in the Academy.

Bond fund basics How to read a fund's stats Why total return beats chasing yield T-bills vs. money market funds vs. CDs

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