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ETF Comparison

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

A head-to-head comparison of Schwab Short-Term U.S. Treasury ETF and iShares 0-3 Month Treasury Bond ETF covering yield, cost, risk, and income potential.

Data updated August 14, 2026

Best for

  • SCHOInvestors who want fixed-income ballast that steadies the portfolio when stocks fall.
  • SGOVInvestors who want fixed-income ballast that steadies the portfolio when stocks fall.

Jump to the side-by-side numbers

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricSCHOSGOV
Full nameSchwab Short-Term U.S. Treasury ETFiShares 0-3 Month Treasury Bond ETF
IssuerSchwabiShares
Last Close$24.10 as of August 14, 2026$100.56 as of August 14, 2026
Distribution yield4.04%3.66%
Distribution Safety Score™ 7673
Expense ratio0.03%0.07%
AUM$12.9B$99.9B
Distribution frequencyMonthlyMonthly
Underlying indexBloomberg US Treasury 1-3 Year IndexICE 0-3 Month US Treasury Securities Index
ObjectiveTracks the Bloomberg US Treasury 1-3 Year Index.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 date08/05/201005/26/2020
Beta0.22-0.0029
Last dividend$0.0812$0.3070
Ex-dividend date08/03/202608/03/2026

Bottom lineSCHO and SGOV are both for investors who want fixed-income ballast that steadies the portfolio when stocks fall — so strategy isn't the deciding factor here. Fees and payouts are close too, so it comes down to which your broker offers commission-free and any share-price or tax-lot preference.

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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$605B

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 SCHO.

See all Schwab ETFs
iShares
ETFs473
Total AUM$4664B

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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Visual comparison

Key metrics

Projected income on $10K

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

Total returns

SCHO has lagged SGOV over the trailing twelve months, posting a 2.50% total return against 3.87%. The lead holds up over 5 years too: SGOV has compounded at 3.69% a year, against 1.89% for SCHO. SGOV has been the steadier holding, though — annualized volatility of 0.2% against 1.7% for SCHO. 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
SCHO0.83%2.50%4.29%1.89%1.54%1.7%-0.17-0.24-1.0%
SGOV2.24%3.87%4.63%3.69%2.97%0.2%0.190.31-0.0%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 14, 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

SCHO (Schwab Short-Term U.S. Treasury ETF) and SGOV (iShares 0-3 Month Treasury Bond ETF) are both monthly-pay dividend ETFs, but they take different approaches.

SCHO offers the higher yield at 4.04% vs 3.66% for SGOV. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

SCHO is cheaper with an expense ratio of 0.03% compared to 0.07%.

They track different benchmarks: SCHO is linked to Bloomberg US Treasury 1-3 Year Index while SGOV tracks ICE 0-3 Month US Treasury Securities Index, which means their performance drivers differ.

SGOV is the larger fund by assets ($99.9B), which generally means tighter spreads and better liquidity.

Who should choose each?

Choose SCHO

Schwab Short-Term U.S. Treasury ETF

  • 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 0.2 for SCHO.

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, SCHO would generate roughly $33.67/month, while SGOV would produce $30.50/month, at current distribution rates. Both pay monthly distributions.

SCHO yield4.04%
SGOV yield3.66%
Monthly diff on $10K$3.17

Cost & efficiency

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

SCHO ER0.03%
SGOV ER0.07%

Strategy & risk

SCHO tracks Bloomberg US Treasury 1-3 Year Index, while SGOV tracks ICE 0-3 Month US Treasury Securities Index with a bonds approach. Beta is 0.22 for SCHO and -0.0029 for SGOV, indicating SGOV is less volatile relative to the market.

SCHO beta0.22
SGOV beta-0.0029

Fund details

SCHO is managed by Schwab (launched 08/05/2010) with $12.9B in assets. SGOV is managed by iShares (launched 05/26/2020) with $99.9B in assets.

SCHO AUM$12.9B
SGOV AUM$99.9B
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Frequently asked questions

What is the current distribution yield for SCHO and SGOV?

SCHO currently distributes 4.04% 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 SCHO or SGOV better for dividend income?

It depends on your goals. SCHO 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 SCHO and SGOV?

SCHO (Schwab Short-Term U.S. Treasury ETF) tracks Bloomberg US Treasury 1-3 Year Index, while SGOV (iShares 0-3 Month Treasury Bond ETF) tracks ICE 0-3 Month US Treasury Securities Index with a bonds approach. They are issued by Schwab and iShares respectively.

Can I hold both SCHO 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 SCHO 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 — SCHO scores 76, SGOV scores 73, so SCHO's payout currently looks the more resilient of the two. SGOV has also shown lower price volatility (beta -0.00 vs 0.22 for SCHO). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, SCHO or SGOV?

SCHO 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 SCHO vs SGOV generate?

At current rates, $10,000 in SCHO would generate roughly $33.67 per month ($404.00 annually). The same in SGOV would produce about $30.50 per month ($366.00 annually).

Which has performed better historically, SCHO or SGOV?

SCHO has lagged SGOV over the trailing twelve months, posting a 2.50% total return against 3.87%. The lead holds up over 5 years too: SGOV has compounded at 3.69% a year, against 1.89% for SCHO. SGOV has been the steadier holding, though — annualized volatility of 0.2% against 1.7% for SCHO. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

SCHO vs SGOV — at a glance

Generated August 15, 2026.

Overview

SCHO and SGOV are both Treasury ETFs paying monthly distributions, but they target fundamentally different maturity windows. SCHO tracks bonds maturing in 1–3 years; SGOV holds only bills maturing in 3 months or less. That maturity gap drives their yield difference and interest-rate sensitivity—SCHO offers higher income but carries modest duration risk, while SGOV behaves almost like cash and sacrifices yield for principal stability.

How they differ

The biggest difference is maturity: SCHO holds medium-term Treasuries (1–3 years) while SGOV invests exclusively in Treasury bills with 3 months or less to maturity. That structural difference explains SGOV's minimal price volatility (beta of –0.0029 versus SCHO's 0.22) and its lower distribution rate—3.66% versus SCHO's 4.04%. SGOV is vastly larger ($99.9B in AUM versus $12.9B) and came to market a decade later (May 2020), suggesting it has captured substantial demand for near-cash Treasury exposure. Both charge minimal fees, but SGOV's 0.07% expense ratio edges slightly higher than SCHO's 0.03%.

Who each is best for

SCHO: Fits investors seeking meaningful income from Treasuries without requiring the near-zero volatility of cash alternatives—appropriate for those with a few years' time horizon and mild appetite for interest-rate duration risk.

SGOV: Designed for investors who treat Treasury bills as a cash substitute and prioritize principal stability and liquidity over incremental yield—useful for those holding near-term reserves or building a short-duration Treasury ladder.

Key risks to know

  • Duration and rate risk (SCHO): A 1–3 year maturity schedule means SCHO's NAV will fluctuate when interest rates move; a 100 basis point rise in rates would typically push the fund down roughly 2%, whereas SGOV's bill-only holdings face negligible rate risk.
  • Yield compression (SGOV): Treasury bills offer minimal yield cushion against inflation and won't recover the 3.66% distribution rate if the Fed cuts rates sharply; income investors relying on bill yields may experience a noticeable income cliff in a declining-rate environment.
  • Reinvestment timing: Both funds distribute monthly, creating frequent reinvestment decisions; investors cannot lock in SCHO's current 4.04% or SGOV's 3.66% for long if rates fall materially between purchases.
  • Relative underperformance in rising-rate scenarios: If yields rise sharply and stay elevated, SCHO's longer-duration bonds will underperform newer issuances, though the effect on SGOV is minimal.

Bottom line

If you need income with modest volatility and have a holding period of a few years, SCHO's higher yield and slightly lower fee make economic sense; if you're using Treasury exposure as a cash parking spot and volatility concerns matter more than an extra 38 basis points of yield, SGOV's 3-month maturity and microscopic price sensitivity stand out. Past performance does not predict future results, and rate expectations should drive the choice between duration and stability here.

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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