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ETF Comparison

BND vs SGOV: Which Is the Better Pick in 2026?

A head-to-head comparison of Vanguard Total Bond Market ETF and iShares 0-3 Month Treasury Bond ETF covering yield, cost, risk, and income potential.

Data updated July 21, 2026

Vanguard
ETFs116
Total AUM$4488B

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

Vanguard is known for offering low-cost, passively managed ETFs that emphasize broad market exposure and long-term investing. The company operates 175 ETFs across diverse fund families including Index, Bond, Equity, Dividend, Income, International, Factor, and ESG strategies, serving investors with various goals from core portfolio building to specialized income generation. Notable for its scale and popular tickers like VB (total U.S. small-cap), BND (total bond market), and VBIAX (international bonds), Vanguard focuses on providing comprehensive, index-based investment solutions with an emphasis on cost efficiency and accessibility.

See our curated list of related YouTube videos on BND.

See all Vanguard ETFs
iShares
ETFs477
Total AUM$4543B

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

Side-by-side snapshot

BNDSGOV
Full nameVanguard Total Bond Market ETFiShares 0-3 Month Treasury Bond ETF
IssuerVanguardiShares
Last Close$72.68 as of July 21, 2026$100.59 as of July 21, 2026
Distribution yield4.04%3.53%
Distribution Safety Score™ 10071
Expense ratio0.03%0.07%
AUM$161B$98.6B
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.Treasury Bond
Asset classFixed IncomeFixed Income
Inception date04/03/200705/26/2020
Beta0.98-0.0029
Last dividend$0.2445$0.2960
Ex-dividend date07/01/202607/01/2026

Bottom lineChoose BND if you want higher current income (4.04% vs 3.53% for SGOV). Choose SGOV if you want fixed-income ballast that steadies the portfolio when stocks fall.

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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

BND has lagged SGOV over the trailing twelve months, posting a 3.47% total return against 3.86%. The lead holds up over 5 years too: SGOV has compounded at 3.63% a year, against -0.34% 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.

SymbolYTD1Y3Y5YSince May 2020Volatility Sharpe Sortino Max drawdown
BND0.12%3.47%3.85%-0.34%-0.05%5.2%-0.13-0.19-5.6%
SGOV1.96%3.86%4.65%3.63%2.96%0.2%0.350.57-0.0%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 20, 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.

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 4.04% vs 3.53% 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 0.07%.

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 ($161B), 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 4.04% vs 3.53% for SGOV.
  • Want fixed-income ballast that cushions equity drawdowns.
  • Want to keep costs low — a 0.03% expense ratio vs 0.07% 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 $33.67/month, while SGOV would produce $29.42/month, at current distribution rates. Both pay monthly distributions.

BND yield4.04%
SGOV yield3.53%
Monthly diff on $10K$4.25

Cost & efficiency

Over 10 years on $10,000, BND would cost approximately $30 in fees vs $70 for SGOV (simplified, not compounded). The $40.00 difference may be offset by yield or performance.

BND ER0.03%
SGOV ER0.07%

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 treasury bond approach. Beta is 0.98 for BND and -0.0029 for SGOV, indicating SGOV is less volatile relative to the market.

BND beta0.98
SGOV beta-0.0029

Fund details

BND is managed by Vanguard (launched 04/03/2007) with $161B in assets. SGOV is managed by iShares (launched 05/26/2020) with $98.6B in assets.

BND AUM$161B
SGOV AUM$98.6B
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Frequently asked questions

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.

What is the difference between BND and SGOV?

BND (Vanguard Total Bond Market ETF) tracks Bloomberg U.S. Aggregate Float Adjusted Index with a bonds approach, while SGOV (iShares 0-3 Month Treasury Bond ETF) tracks ICE 0-3 Month US Treasury Securities Index with a treasury bond approach. They are issued by Vanguard and iShares respectively.

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.

Which has lower fees, BND or SGOV?

BND has an expense ratio of 0.03% while SGOV charges 0.07%. 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 $33.67 per month ($404.00 annually). The same in SGOV would produce about $29.42 per month ($353.00 annually).

Which has performed better historically, BND or SGOV?

BND has lagged SGOV over the trailing twelve months, posting a 3.47% total return against 3.86%. The lead holds up over 5 years too: SGOV has compounded at 3.63% a year, against -0.34% 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 July 2026 from current fund data.

Overview

BND and SGOV are both fixed-income ETFs tracking broad U.S. Treasury or bond indexes, but they target opposite ends of the maturity spectrum. BND holds the entire U.S. investment-grade bond market—Treasuries, mortgages, corporates, and agencies—with durations spanning decades. SGOV holds only ultra-short Treasury bills maturing in zero to three months, functioning as a near-cash instrument with minimal interest-rate risk.

How they differ

The fundamental split is maturity: BND carries a beta of 0.98, meaning its price moves in lockstep with broad bond-market shifts, while SGOV's beta of -0.0029 indicates it's effectively immune to rate swings—it rolls over bills constantly and holds almost no duration risk. BND yields 4.03% and SGOV yields 3.53%, a difference that reflects the maturity premium; longer bonds compensate for interest-rate exposure that short bills don't have. BND is vastly larger at $158B in AUM versus SGOV's $95.2B, and both charge minimal fees (0.03% and 0.07% respectively), so cost plays almost no role in the decision.

Who each is best for

BND: Fits investors seeking a diversified, passive core fixed-income holding with meaningful yield and price appreciation potential when rates fall, and who can tolerate multi-year swings tied to duration changes.

SGOV: Fits investors who need liquidity, stability of principal, and a current-income stream that floats with the Fed funds rate—those treating their bond allocation as a substitute for a money market fund rather than a longer-term credit investment.

Key risks to know

  • Duration and interest-rate risk (BND): A 1% rise in rates would typically produce a 5–7% decline in NAV, given the fund's market-level duration. SGOV has virtually no duration risk and will hold par value.
  • Credit and spread risk (BND): The fund holds corporate bonds and mortgages alongside Treasuries. In a credit downturn or widening-spread environment, these assets can underperform the Treasury sleeve; SGOV avoids this entirely by holding only bills.
  • Reinvestment-rate compression (SGOV): As bills mature and roll, yields track the current Fed funds rate. If rates fall sharply, new rolls will reset at lower coupons; this is a mechanical feature of the strategy, not a failure, but contrasts with BND's locked-in longer coupons.
  • Limited upside (SGOV): Because SGOV holds only near-zero-coupon bills, it cannot capture the price appreciation that BND can achieve if rates decline significantly.

Bottom line

If you're building a core bond allocation and want current income plus the possibility of capital gains when rates decline, BND's broad diversification and duration exposure align with that goal. If you need a stable, liquid holding that mirrors short-term interest rates and don't want principal volatility, SGOV functions as a Treasury-backed alternative to money market funds. Neither is inherently "better"—the choice hinges on whether you view your bond sleeve as a long-term investment or a near-cash parking spot.

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

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