SCHO vs SGOV: How Much Rate Risk Should Cash Take?
A head-to-head comparison of the Schwab Short-Term U.S. Treasury ETF and the iShares 0-3 Month Treasury Bond ETF covering duration, yield, cost, and how each behaves when rates move.
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.
SCHO has lagged SGOV over the trailing twelve months, posting a 1.54% total return against 3.74%. The lead holds up over 5 years too: SGOV has compounded at 3.78% a year, against 1.82% 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.
Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 30, 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 3.66% 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 3.66% (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.
Bottom lineChoose SCHO if you want fixed-income ballast that steadies the portfolio when stocks fall. Choose SGOV if you want higher current income (3.66% vs 3.13% for SCHO).
SCHO vs SGOV: 1-3 year notes or T-bills?
Both are Treasury-only. SCHO's 1-3 year notes take real rate risk. SGOV's 0-3 month bills barely move. A near-tie yield is not a reason to ignore duration.
SCHO
SGOV
Treasury book
1-3 year US Treasuries
0-3 month T-bills
Rate sensitivity
Notes reprice slowly; price can fall when rates rise
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.
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.
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.
SGOV offers the higher yield at 3.66% vs 3.13% for SCHO. 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 0.09%.
They have different reference exposures: SCHO is linked to Bloomberg US Treasury 1-3 Year 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 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 0.09% for SGOV.
Choose SGOV
iShares 0-3 Month Treasury Bond ETF
Want higher current income — SGOV yields 3.66% vs 3.13% for SCHO.
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.
Still deciding? Track SCHO & SGOV for free
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On a $10,000 investment, SCHO would generate roughly $26.08 cash per distribution, while SGOV would produce $30.50 cash per distribution, at current distribution rates. Both pay monthly distributions.
SCHO yield3.13%
SGOV yield3.66%
Cash diff on $10K$4.42
Cost & efficiency
Over 10 years on $10,000, SCHO would cost approximately $30 in fees vs $90 for SGOV (simplified, not compounded). The $60.00 difference may be offset by yield or performance.
SCHO ER0.03%
SGOV ER0.09%
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, making SGOV the less volatile of the two by this measure.
SCHO beta0.22
SGOV beta-0.0029
Fund details
SCHO is managed by Schwab (launched 08/05/2010) with $15.3B in assets. SGOV is managed by iShares (launched 05/26/2020) with $112B in assets.
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Frequently asked questions
What is the difference between SCHO and SGOV?
Both hold only US Treasuries, so the state-tax story is similar and the yield gap is usually small. SCHO owns 1-3 year notes that reprice slowly and can lose price when rates rise. SGOV rolls 0-3 month T-bills that barely move. Cost is 0.03% versus 0.09%; current distributions are 3.13% and 3.66% as of September 2026. Neither has an options overlay, and neither is an insured bank account. Duration is the decision, not a few basis points of yield.
What is the current distribution rate for SCHO and SGOV?
SCHO currently distributes 3.13% and SGOV 3.66%, based on fund data updated September 2026. Distribution rate 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. 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 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 85, SGOV scores 78, 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 0.09%. 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 $26.08 cash per distribution ($313.00 annually). The same in SGOV would produce about $30.50 cash per distribution ($366.00 annually).
Which has performed better historically, SCHO or SGOV?
SCHO has lagged SGOV over the trailing twelve months, posting a 1.54% total return against 3.74%. The lead holds up over 5 years too: SGOV has compounded at 3.78% a year, against 1.82% 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.
Explore related screeners
Lateral filters that include these funds — browse the full peer set on DividendVision.
SCHO and SGOV are both Treasury-focused ETFs, but they target different maturity windows and trade at fundamentally different price levels. SCHO tracks Treasury notes with 1–3 year maturities, while SGOV invests exclusively in Treasury bills maturing within three months. That maturity gap drives their yield, duration risk, and price behavior.
How they differ
SGOV holds only short-dated Treasury bills—securities that mature in 90 days or less—while SCHO extends into 1–3 year notes, giving SCHO meaningfully longer duration and interest-rate sensitivity. SGOV's 0.09% expense ratio is higher than SCHO's 0.03%, though the difference is negligible in absolute terms. Most visibly, SGOV trades near par ($100.68) while SCHO trades at $23.86, reflecting the cumulative price appreciation SCHO has built up over its longer history since 08/05/2010.
Who each is best for
SCHO: Fits investors seeking a minimal-duration Treasury allocation with monthly income and very low fees—useful as a core holding in bond allocations where some price sensitivity to rate moves is acceptable in exchange for higher yield.
SGOV: Designed for investors prioritizing capital stability and liquidity over yield, or those treating Treasury holdings as a cash-equivalent sleeve where money-market-like characteristics (near-par pricing, ultra-short maturity) matter more than extracting incremental income.
Key risks to know
Duration and rate sensitivity:SCHO's 0.22 beta reflects 1–3 year Treasury exposure; a 1% rate rise will erode SCHO's NAV more than SGOV's, since SGOV's ultra-short duration (near zero) shields it from that risk.
Yield compression in low-rate environments: Both funds' distributions track prevailing Treasury yields; if short-term rates fall materially, SGOV's 3.66% yield could compress faster than SCHO's, since SGOV owns securities closer to maturity and is more exposed to roll-down pressure.
SGOV's recent inception and size concentration:SGOV launched 05/26/2020, making it a newer fund with less documented behavior through a full rate cycle; its $112B in assets also concentrates flows into a single issuer's product.
Price-level mismatch for SCHO:SCHO's $23.86 price reflects years of accumulated capital gains; future distributions, if rates stay flat or fall, may not keep pace with price depreciation if Treasury yields rise.
Bottom line
If you want to park cash in Treasuries and don't mind interest-rate risk in exchange for higher yield and lower fees, SCHO's simplicity and track record stand out. If you prioritize capital stability and are comfortable with SGOV's modestly higher expense ratio in exchange for money-market-like behavior, SGOV's near-par pricing and ultra-short duration fit. Past performance doesn't predict future results; both funds' yields will move with Treasury rates.
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.
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