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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.

Updated October 14, 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 -1.97% total return against 3.75%. The lead holds up over 5 years too: SGOV has compounded at 3.81% a year, against -0.55% for BND. SGOV has been the steadier holding, though — annualized volatility of 0.2% against 5.0% 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.
SymbolYTD cumulative1Y cumulative3Y annualized5Y annualizedSince May 2020Volatility Sharpe Sortino Max drawdown
BND-2.03%-1.97%4.34%-0.55%-0.38%5.0%-0.04-0.06-4.7%
SGOV2.87%3.75%4.52%3.81%2.99%0.2%-0.25-0.39-0.0%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 14, 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 3.59% 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.
MetricBNDSGOV
Full nameVanguard Total Bond Market ETFiShares 0-3 Month Treasury Bond ETF
IssuerVanguardiShares
Underlying indexBloomberg U.S. Aggregate Float Adjusted IndexICE 0-3 Month US Treasury Securities Index (USD)
Last Close$70.40 as of October 14, 2026$100.54 as of October 14, 2026
Distribution rate4.24%3.59%
Trailing 12-month yield4.17%3.65%
Distribution Safety Score™ 9779
Safety-Adjusted Yield 4.11%2.84%
Expense ratio0.03%0.09%
AUM$163B$115B
Distribution frequencyMonthlyMonthly
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$0.2485$0.301
Ex-dividend date10/01/202610/01/2026

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.

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 rate4.24%3.59%
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$4.71T

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 ETFs from Vanguard
iShares
ETFs467
Total AUM$4.70T

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

iShares, operated by BlackRock, is one of the largest and most established ETF providers globally, known for offering broad, liquid index-tracking funds across nearly all asset classes and investment styles. The lineup encompasses a comprehensive range of strategies including core equity and bond exposure, dividend and income-focused funds, covered call strategies, ESG and thematic investments, factor-based approaches, alternatives, commodities, and municipal bonds, serving both individual and institutional investors. With numerous popular ticker symbols and extensive diversification across geographies, sectors, and investment objectives, iShares provides one of the market's widest selections of ETFs for building diversified portfolios.

See our curated list of related YouTube videos on SGOV.

See all ETFs from iShares

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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 4.24% vs 3.59% 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 ($163B), 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 4.24% vs 3.59% 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.

Deep dive

Yield & income

On a $10,000 investment, BND would generate roughly $35.33 cash per distribution, while SGOV would produce $29.92 cash per distribution, at current distribution rates. Both pay monthly distributions.

BND yield4.24%
SGOV yield3.59%
Cash diff on $10K$5.42

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 (USD) 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 $163B in assets. SGOV is managed by iShares (launched 05/26/2020) with $115B in assets.

BND AUM$163B
SGOV AUM$115B
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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 4.24% and SGOV 3.59% 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 4.24% and SGOV 3.59%, 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 97, 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 $35.33 cash per distribution ($424.00 annually). The same in SGOV would produce about $29.92 cash per distribution ($359.00 annually).

Which has performed better historically, BND or SGOV?

BND has lagged SGOV over the trailing twelve months, posting a -1.97% total return against 3.75%. The lead holds up over 5 years too: SGOV has compounded at 3.81% a year, against -0.55% for BND. SGOV has been the steadier holding, though — annualized volatility of 0.2% against 5.0% 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 October 10, 2026.

Overview

BND and SGOV are both bond-focused ETFs, but they target opposite ends of the fixed-income spectrum. BND tracks the broad U.S. bond market across all maturities and credit qualities, while SGOV holds only U.S. Treasury bills maturing within three months. This difference in duration and credit risk drives their yield, volatility, and role in a portfolio.

How they differ

The core distinction is maturity profile and duration: BND holds bonds across the entire yield curve, from short-term Treasuries to long-term corporate and government debt, while SGOV is confined to ultra-short Treasury paper maturing in 90 days or less. BND's 4.24% yield substantially exceeds SGOV's 3.59%, but at the cost of interest-rate sensitivity — BND's 0.98 beta shows meaningful price movement with the broader market, while SGOV faces minimal price volatility as securities approach maturity. BND operates the largest asset base at $163B, versus SGOV's $115B, and has been running since 04/03/2007, more than a decade longer than SGOV's 05/26/2020 launch. The expense ratio gap is negligible: 0.03% for BND versus 0.09% for SGOV.

Who each is best for

BND: Fits investors seeking core fixed-income exposure who can tolerate interest-rate risk and want to capture the full breadth of the U.S. bond market.

SGOV: Fits conservative investors who prioritize principal stability over yield and want near-cash-like behavior with a modest yield pickup relative to money-market alternatives. Designed for allocations that need to park capital while avoiding duration risk of longer-dated bonds.

Key risks to know

  • Interest-rate sensitivity. BND's market-level beta and multi-decade maturity profile mean its NAV will fall if rates rise and climb if rates fall. SGOV, by contrast, faces minimal price risk because its holdings mature so quickly that rate changes barely affect value before redemption.
  • Credit risk concentration in BND. While the Aggregate Index includes investment-grade corporates alongside government debt, a widening of credit spreads could depress BND's NAV more than rates alone would explain. SGOV faces no credit risk, backed entirely by U.S. Treasury obligations.
  • Reinvestment dynamics in a changing-rate environment. SGOV's 90-day maximum maturity means its portfolio will gradually roll into whatever rates prevail at each successive maturity. In a rising-rate environment, this rollover eventually captures higher yields; in a falling-rate one, it locks in lower returns as holdings mature and reinvest.

Bottom line

If you're building a bond allocation and expect rates to stabilize or decline, BND's 4.24% yield and broad market exposure address that thesis. If your priority is capital stability and you're willing to accept 3.59% in exchange for minimal price volatility, SGOV matches that objective. Past performance doesn't guarantee future results, and both funds' yields depend on where rates head.

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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These comparisons follow the Dividend Vision methodology.