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.
ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.
Schwab is known for offering low-cost, broad-based ETFs that serve both core portfolio holdings and specialized investment strategies. Their 33-fund lineup spans multiple asset classes including bonds, equities, international markets, digital assets, and factor-based strategies, with a notable emphasis on dividend-focused funds like SCHD alongside core index options. The issuer emphasizes accessibility for individual investors through competitive expense ratios and a diverse range of fund families designed to support various investment objectives.
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.
Bottom lineSCHO and SGOV are nearly interchangeable — both offer very similar exposure with very similar cost and risk. The clearest tie-breaker is cost: SCHO is cheaper at 0.03% vs 0.07%.
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Projections assume the current yield and share price remain constant. Actual results will vary.
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 3.89% vs 3.53% 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 ($95.2B), 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 $32.42/month, while SGOV would produce $29.42/month, at current distribution rates. Both pay monthly distributions.
SCHO yield3.89%
SGOV yield3.53%
Monthly diff on $10K$3.00
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 treasury bond approach. Beta is 0.23 for SCHO and -0.0029 for SGOV, indicating SGOV is less volatile relative to the market.
SCHO beta0.23
SGOV beta-0.0029
Fund details
SCHO is managed by Schwab (launched 08/05/2010) with $12.8B in assets. SGOV is managed by iShares (launched 05/26/2020) with $95.2B in assets.
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Frequently asked questions
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 treasury bond 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.
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 $32.42 per month ($389.00 annually). The same in SGOV would produce about $29.42 per month ($353.00 annually).
Explore related screeners
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