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ETF Comparison

SCHD vs SGOV: Growing Income or Parked Cash?

A head-to-head comparison of the Schwab US Dividend Equity ETF and the iShares 0-3 Month Treasury Bond ETF covering income, risk, drawdown, and the different roles they play.

Updated October 2, 2026

How these figures are calculated: methodology.

Best for

  • SCHDInvestors who want a quality-dividend tilt rather than the whole market.
  • 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

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.

SCHD has outpaced SGOV over the trailing twelve months, posting a 23.02% total return against 3.79%. The lead holds up over 5 years too: SCHD has compounded at 9.29% a year, against 3.79% for SGOV. SGOV has been the steadier holding, though — annualized volatility of 0.2% against 13.2% for SCHD. 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
SCHD20.89%23.02%15.99%9.29%14.42%13.2%0.791.15-16.1%
SGOV2.73%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.
MetricSCHDSGOV
Full nameSchwab U.S. Dividend Equity ETFiShares 0-3 Month Treasury Bond ETF
IssuerSchwabiShares
Underlying indexDow Jones U.S. Dividend 100 IndexICE 0-3 Month US Treasury Securities Index
Last Close$32.72 as of October 2, 2026$100.44 as of October 2, 2026
Distribution rate3.26%3.60%
Trailing 12-month yield3.22%3.65%
Distribution Safety Score™ 10079
Safety-Adjusted Yield 3.26%2.84%
Expense ratio0.06%0.09%
AUM$110B$112B
Distribution frequencyQuarterlyMonthly
ObjectiveSeeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Dividend 100 Index, which measures the performance of high dividend yielding stocks issued by U.S. companies with a record of consistently paying dividends, selected for fundamental strength relative to their peers based on financial ratios.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 classEquityFixed Income
Inception date10/20/201105/26/2020
Beta0.56-0.0029
Last dividend$0.2665$0.301 declared, pays 10/06/2026
Ex-dividend date09/23/202610/01/2026

Bottom lineChoose SCHD if you want a quality-dividend tilt rather than the whole market. Choose SGOV if you want fixed-income ballast that steadies the portfolio when stocks fall.

Two different portfolio jobs: equity growth vs cash reserve

SCHD is a stock portfolio built for dividend quality and long-run participation. SGOV is a short Treasury holding built to preserve liquidity and follow policy rates. A yield comparison alone cannot decide between those jobs.

SCHDSGOV
What it ownsDividend-paying US stocksUS Treasury bills maturing in 0-3 months
Main return sourceDividends plus stock-price changeShort-term Treasury interest
Expense ratio0.06%0.09%
Distribution rate3.26%3.60%
Primary riskEquity drawdownRates falling and a slightly moving ETF price
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Income calculator

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

Schwab
ETFs33
Total AUM$612B

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

Schwab is a major provider of low-cost, broad-based ETFs known for making investing accessible to individual investors through its discount brokerage platform. The issuer's fund lineup spans multiple categories including core index funds, dividend and income-focused strategies, factor-based approaches, international exposure, fixed income, and digital assets, with popular core holdings like SCHB (U.S. broad market) and SCHD (dividend appreciation) alongside more specialized thematic offerings. Schwab's ETF suite is characterized by its breadth across asset classes and investment styles, competitive expense ratios, and integration with its retail brokerage ecosystem.

See our curated list of related YouTube videos on SCHD.

See all Schwab 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

SCHD (Schwab U.S. Dividend Equity ETF) and SGOV (iShares 0-3 Month Treasury Bond ETF) are both dividend ETFs, but they take different approaches.

SGOV offers the higher yield at 3.60% vs 3.26% for SCHD. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

SCHD is cheaper with an expense ratio of 0.06% compared to 0.09%.

They have different reference exposures: SCHD is linked to Dow Jones U.S. Dividend 100 Index while SGOV is linked to ICE 0-3 Month US Treasury Securities Index, which means their performance drivers differ.

SGOV is the larger fund by assets ($112B), but assets alone do not establish trading costs or liquidity.

Who should choose each?

Choose SCHD

Schwab U.S. Dividend Equity ETF

  • Want a quality-dividend tilt — screened payers rather than the broad index.
  • Want to keep costs low — a 0.06% 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 0.6 for SCHD.

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, SCHD would generate roughly $81.50 cash per distribution, while SGOV would produce $30.00 cash per distribution, at current distribution rates.

SCHD yield3.26%
SGOV yield3.60%
Cash diff on $10K$51.50

Cost & efficiency

Over 10 years on $10,000, SCHD would cost approximately $60 in fees vs $90 for SGOV (simplified, not compounded). The $30.00 difference may be offset by yield or performance.

SCHD ER0.06%
SGOV ER0.09%

Strategy & risk

SCHD tracks Dow Jones U.S. Dividend 100 Index, while SGOV tracks ICE 0-3 Month US Treasury Securities Index with a bonds approach. Beta is 0.56 for SCHD and -0.0029 for SGOV, making SGOV the less volatile of the two by this measure.

SCHD beta0.56
SGOV beta-0.0029

Fund details

SCHD is managed by Schwab (launched 10/20/2011) with $110B in assets. SGOV is managed by iShares (launched 05/26/2020) with $112B in assets.

SCHD AUM$110B
SGOV AUM$112B
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Frequently asked questions

Is SCHD or SGOV better for cash and short-term savings?

SGOV is the closer match for cash because it holds Treasury bills maturing within about three months; SCHD owns dividend-paying stocks whose price can fall materially. SGOV's payout follows short-term interest rates, while SCHD's return depends on dividends and stock-price growth. Their current distributions are 3.26% and 3.60%, but those yields compensate for very different risks. Figures as of October 2026; neither ETF is an insured bank account.

What is the current distribution rate for SCHD and SGOV?

SCHD currently distributes 3.26% 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 SCHD or SGOV better for dividend income?

It depends on your goals. SGOV 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 SCHD 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 SCHD 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 — SCHD scores 100, SGOV scores 79, so SCHD's payout currently looks the more resilient of the two. SGOV has also shown lower price volatility (beta -0.00 vs 0.56 for SCHD). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, SCHD or SGOV?

SCHD has an expense ratio of 0.06% 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 SCHD vs SGOV generate?

At current rates, $10,000 in SCHD would generate roughly $81.50 cash per distribution ($326.00 annually). The same in SGOV would produce about $30.00 cash per distribution ($360.00 annually).

Which has performed better historically, SCHD or SGOV?

SCHD has outpaced SGOV over the trailing twelve months, posting a 23.02% total return against 3.79%. The lead holds up over 5 years too: SCHD has compounded at 9.29% a year, against 3.79% for SGOV. SGOV has been the steadier holding, though — annualized volatility of 0.2% against 13.2% for SCHD. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

SCHD vs SGOV — at a glance

Generated October 3, 2026.

Overview

SCHD is a large-cap dividend equity ETF tracking the Dow Jones U.S. Dividend 100 Index—a basket of 100 U.S. stocks with consistent dividend histories and strong fundamentals. SGOV is a Treasury bill ETF tracking securities maturing in three months or less. They serve different portfolio roles—one for equity income with price appreciation potential, the other for stability and minimal duration risk.

How they differ

SCHD and SGOV pursue opposite market exposures. SCHD allocates to dividend stocks with a beta of 0.56, meaning it typically moves about half as much as the broader market; SGOV holds ultra-short Treasury bonds with published beta data not reported, delivering essentially no stock-market correlation. The yield picture is close: SGOV's 3.60% distribution rate slightly exceeds SCHD's 3.26%, but SCHD's comes from stock dividends and potential price appreciation, while SGOV's comes purely from interest income on bills maturing within weeks.

Who each is best for

SCHD: Fits investors seeking dividend income alongside moderate equity exposure, with intermediate to long time horizons and comfort with stock-market pullbacks. Works well in a total-return portfolio where quarterly dividends are reinvested or taken as spending.

SGOV: Fits investors prioritizing capital preservation and yield above savings-account rates, or those using it as a core holding for cash needs, emergency reserves, or a portfolio ballast independent of stock performance.

Key risks to know

  • Equity drawdown risk (SCHD): Dividend stocks still carry equity beta and can decline sharply in recession; a 0.56 beta means SCHD typically loses about half what the market loses, but that's still material in a 30% downturn.
  • Dividend sustainability (SCHD): Dividend cuts or cancellations during economic stress can reduce future payouts; index selection favors past dividend strength, which does not guarantee future continuation.
  • Interest-rate sensitivity (SGOV): Although duration risk is minimal on bills maturing within three months, if the Federal Reserve raises rates while rates are near cycle lows, new purchases will yield more, potentially depressing near-term returns for existing holders.
  • Reinvestment rate decay (SGOV): Monthly distributions at 3.60% assume similar rates will be available when bills mature and are rolled over; if Treasury yields fall materially, distributions will likely decline within months.

Bottom line

If you want dividend income with partial stock-market participation and are comfortable with equity risk, SCHD's 0.06% expense ratio and $110B asset base fit a long-term allocation. If you prioritize stability and near-cash yields above money-market rates, SGOV's Treasury backing serves as a complementary holding. The two have comparable expenses and AUM, so the choice hinges on whether you need equity upside or portfolio stability. 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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These comparisons follow the Dividend Vision methodology.