ETF Comparison
SHY vs SGOV: Which Is the Better Pick in 2026?
A head-to-head comparison of iShares 1-3 Year Treasury Bond ETF and iShares 0-3 Month Treasury Bond ETF covering yield, cost, risk, and income potential.
Data updated April 5, 2026
Side-by-side snapshot
| SHY | SGOV | |
|---|---|---|
| Full name | iShares 1-3 Year Treasury Bond ETF | iShares 0-3 Month Treasury Bond ETF |
| Issuer | iShares | BlackRock |
| Price | $82.32 | $100.39 |
| Distribution yield | 3.76% | 4.04% |
| Expense ratio | 0.15% | 0.09% |
| AUM | $24.9B | $75.0B |
| Distribution frequency | — | Monthly |
| Underlying index | — | ICE 0-3 Month US Treasury Securities Index |
| Objective | Tracks the ICE U.S. Treasury 1-3 Year Bond Index. | Treasury Bond |
| Asset class | Fixed Income | Equity |
| Inception date | — | 05/26/2020 |
| Beta | 0.25 | 0.0 |
| Last dividend | $0.25 | $0.29 |
| Ex-dividend date | 04/01/2026 | 04/01/2026 |
Visual comparison
Key metrics
Projected income on $10K
Projections assume the current yield and share price remain constant. Actual results will vary.
Quick verdict
SHY (iShares 1-3 Year Treasury Bond ETF) and SGOV (iShares 0-3 Month Treasury Bond ETF) are both popular -pay tracks the ice u.s. treasury 1-3 year bond index. ETFs, but they take different approaches.
SGOV offers the higher yield at 4.04% vs 3.76% for SHY. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.
SGOV is cheaper with an expense ratio of 0.09% compared to 0.15%.
SGOV is the larger fund by assets ($75.0B), which generally means tighter spreads and better liquidity.
Deep dive
Yield & income
On a $10,000 investment, SHY would generate roughly $31.33/month while SGOV would produce $33.67/month at current distribution rates. Both pay distributions.
Cost & efficiency
Over 10 years on $10,000, SHY would cost approximately $150 in fees vs $90 for SGOV (simplified, not compounded). The $60.00 difference may be offset by yield or performance.
Strategy & risk
SHY tracks — with a tracks the ice u.s. treasury 1-3 year bond index. approach, while SGOV tracks ICE 0-3 Month US Treasury Securities Index using a treasury bond strategy. Beta is 0.25 for SHY and 0.0 for SGOV, indicating SGOV is less volatile relative to the market.
Fund details
SHY is managed by iShares (launched —) with $24.9B in assets. SGOV is managed by BlackRock (launched 05/26/2020) with $75.0B in assets.
Income calculator
See how much monthly income a hypothetical investment would generate in each ETF at current yields.
Frequently asked questions
Is SHY 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.
What is the difference between SHY and SGOV?
SHY (iShares 1-3 Year Treasury Bond ETF) tracks — with a tracks the ice u.s. treasury 1-3 year bond index. strategy, 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 iShares and BlackRock respectively.
Can I hold both SHY and SGOV?
Yes. Many income investors hold both to diversify across different strategies and underlying indexes. This can reduce concentration risk while maintaining a strong income stream.
Which has lower fees, SHY or SGOV?
SHY has an expense ratio of 0.15% 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 SHY vs SGOV generate?
At current yields, $10,000 in SHY would generate roughly $31.33 per month ($376.00 annually). The same in SGOV would produce about $33.67 per month ($404.00 annually).
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