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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.

Data updated August 19, 2026

Best for

  • SCHDInvestors who want a quality-dividend tilt rather than the whole market.
  • SGOVInvestors who want higher current income (3.66% vs 2.93% for SCHD).

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

SCHD has outpaced SGOV over the trailing twelve months, posting a 33.45% total return against 3.83%. The lead holds up over 5 years too: SCHD has compounded at 10.46% a year, against 3.70% 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.
SymbolYTD1Y3Y5YSince May 2020Volatility Sharpe Sortino Max drawdown
SCHD28.63%33.45%16.97%10.46%15.87%13.2%0.851.25-16.1%
SGOV2.27%3.83%4.61%3.70%2.97%0.2%0.160.25-0.0%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 19, 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.
MetricSCHDSGOV
Full nameSchwab U.S. Dividend Equity ETFiShares 0-3 Month Treasury Bond ETF
IssuerSchwabiShares
Last Close$34.51 as of August 19, 2026$100.57 as of August 19, 2026
Distribution yield2.93%3.66%
Distribution Safety Score™ 10073
Expense ratio0.06%0.09%
AUM$109B$103B
Distribution frequencyQuarterlyMonthly
Underlying indexDow Jones U.S. Dividend 100 IndexICE 0-3 Month US Treasury Securities Index
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$0.2525$0.3070
Ex-dividend date06/24/202608/03/2026

Bottom lineChoose SCHD if you want a quality-dividend tilt rather than the whole market. Choose SGOV if you want higher current income (3.66% vs 2.93% for SCHD).

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 yield2.93%3.66%
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
ETFs34
Total AUM$616B

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
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

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 3.66% vs 2.93% 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 track different benchmarks: SCHD is linked to Dow Jones U.S. Dividend 100 Index while SGOV tracks ICE 0-3 Month US Treasury Securities Index, which means their performance drivers differ.

SCHD is the larger fund by assets ($109B), which generally means tighter spreads and better 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 higher current income — SGOV yields 3.66% vs 2.93% for SCHD.
  • 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 $24.42/month, while SGOV would produce $30.50/month, at current distribution rates.

SCHD yield2.93%
SGOV yield3.66%
Monthly diff on $10K$6.08

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 $109B in assets. SGOV is managed by iShares (launched 05/26/2020) with $103B in assets.

SCHD AUM$109B
SGOV AUM$103B
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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 2.93% and 3.66%, but those yields compensate for very different risks. Figures as of August 2026; neither ETF is an insured bank account.

What is the current distribution yield for SCHD and SGOV?

SCHD currently distributes 2.93% 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 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 73, 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 $24.42 per month ($293.00 annually). The same in SGOV would produce about $30.50 per month ($366.00 annually).

Which has performed better historically, SCHD or SGOV?

SCHD has outpaced SGOV over the trailing twelve months, posting a 33.45% total return against 3.83%. The lead holds up over 5 years too: SCHD has compounded at 10.46% a year, against 3.70% 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 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

SCHD is a large-cap dividend equity ETF tracking the Dow Jones U.S. Dividend 100 Index, targeting high-yielding U.S. stocks with consistent dividend histories and financial strength. SGOV is a short-duration Treasury ETF holding U.S. bills maturing in three months or less. The funds represent fundamentally different asset classes—equities versus risk-free debt—and serve opposite portfolio roles: one for growth and income, the other for capital preservation and near-cash yield.

How they differ

SCHD invests in dividend-paying stocks selected for yield and financial quality, while SGOV holds only U.S. Treasury bills with maturities of three months or less. SCHD offers a 2.93% distribution rate paid quarterly from equity dividends and price appreciation, whereas SGOV yields 3.66% monthly from near-risk-free Treasury interest rates. The biggest structural difference: SGOV carries a beta of −0.0029, meaning it moves independently from equities and serves as a ballast; SCHD has a beta of 0.56, tracking equity market cycles. SGOV's shorter interest-rate sensitivity and rolling maturity schedule make it price-stable, while SCHD's equity exposure means NAV fluctuates with stock valuations.

Who each is best for

SCHD: Fits investors seeking total return (dividends plus potential capital appreciation) from a curated basket of dividend-focused large-cap stocks, with moderate equity market sensitivity and a tax-efficient quarterly distribution cadence.

SGOV: Designed for investors prioritizing capital preservation and liquidity who want yield above money-market rates without equity risk, using Treasury bills as a low-volatility core holding.

Key risks to know

  • Equity-cycle risk (SCHD): A 0.56 beta means SCHD declines roughly 56% as much as the broad stock market in downturns, exposing holders to cyclical dividend cuts if economic conditions deteriorate.
  • Interest-rate risk (SGOV): Although minimal due to the three-month maturity floor, SGOV's NAV can decline if Treasury yields rise significantly, compressing the price of existing holdings.
  • Dividend concentration risk (SCHD): The Dow Jones U.S. Dividend 100 Index selects only 100 stocks, potentially overweighting sectors or individual names with structural yield advantages but concentrated business risk; verify overlap with your existing holdings.
  • Inflation erosion (SGOV): A 3.66% yield becomes a loss in real purchasing power if inflation exceeds that rate, eroding the fund's role as a true capital-preservation tool.
  • Fee compression (SGOV): The 0.07% expense ratio is competitive, but if Treasury yields fall, the spread between gross yield and net yield widens, reducing take-home returns.

Bottom line

SCHD and SGOV serve different portfolio jobs: SCHD captures equity-market returns through dividend stocks, while SGOV provides short-term stability and liquidity from Treasury bills. If you need growth and income with moderate market exposure, SCHD's lower fees and equity beta fit that mandate; if you're looking for a low-volatility cash alternative with Treasury backing, SGOV's nearly zero beta and monthly income fit that role. Neither is a complete portfolio—each fills a distinct slot. 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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