Start with your spending timeline and tolerance for price changes. Maturity and interest-rate sensitivity matter more than a small distribution-rate gap.
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.
SGOV has outpaced SHY over the trailing twelve months, posting a 3.79% total return against 1.15%. The lead holds up over 5 years too: SGOV has compounded at 3.79% a year, against 1.68% for SHY. SGOV has been the steadier holding, though — annualized volatility of 0.2% against 1.6% for SHY. 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 October 2, 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 3.60% 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 3.45% (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 SGOV if you want very short Treasury exposure and accept changing income and small price moves. Choose SHY if you want 1-3 year Treasury exposure and accept greater interest-rate sensitivity.
Different maturities, different rate exposure
Both hold Treasury exposure, but their price behavior and income reset differ. Neither ETF has a fixed redemption value or is an FDIC-insured bank deposit.
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 and SHY.
SGOV (iShares 0-3 Month Treasury Bond ETF) and SHY (iShares 1-3 Year Treasury Bond ETF) are both monthly-pay dividend ETFs, but they take different approaches.
SGOV offers the higher yield at 3.60% vs 3.57% 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%.
They have different reference exposures: SGOV is linked to ICE 0-3 Month US Treasury Securities Index while SHY is linked to ICE U.S. Treasury 1-3 Year Bond 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.
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On a $10,000 investment, SGOV would generate roughly $30.00 cash per distribution, while SHY would produce $29.75 cash per distribution, at current distribution rates. Both pay monthly distributions.
SGOV yield3.60%
SHY yield3.57%
Cash diff on $10K$0.25
Cost & efficiency
Over 10 years on $10,000, SGOV would cost approximately $90 in fees vs $150 for SHY (simplified, not compounded). The $60.00 difference may be offset by yield or performance.
SGOV ER0.09%
SHY ER0.15%
Strategy & risk
SGOV tracks ICE 0-3 Month US Treasury Securities Index with a bonds approach, while SHY tracks ICE U.S. Treasury 1-3 Year Bond Index. Compare effective duration for rate sensitivity; beta is not a duration measure.
SGOV beta-0.0029
SHY beta0.22
Fund details
SGOV is managed by iShares (launched 05/26/2020) with $112B in assets. SHY is managed by iShares (launched 07/22/2002) with $26.2B in assets.
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Frequently asked questions
How do SGOV and SHY differ when interest rates change?
SGOV targets Treasury bills maturing in 0-3 months; SHY targets 1-3 year Treasuries. SHY generally has greater sensitivity to changes in Treasury yields. SGOV's income resets more quickly as bills mature. Neither ETF guarantees its share price or distribution, and SHY does not always pay a higher yield. Compare the same yield measure on the same date; a distribution rate is not a promised total return.
What is the current distribution rate for SGOV and SHY?
SGOV currently distributes 3.60% and SHY 3.57%, based on fund data updated October 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.
Is SGOV or SHY 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 SGOV and SHY?
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 SGOV or SHY safer?
By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — SHY scores 95, SGOV scores 79, so SHY's payout currently looks the more resilient of the two. SGOV has also shown lower price volatility (beta -0.00 vs 0.22 for SHY). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.
Which has lower fees, SGOV or SHY?
SGOV has an expense ratio of 0.09% while SHY charges 0.15%. Lower fees mean more of your investment returns stay in your pocket over time.
How much income does $10,000 in SGOV vs SHY generate?
At current rates, $10,000 in SGOV would generate roughly $30.00 cash per distribution ($360.00 annually). The same in SHY would produce about $29.75 cash per distribution ($357.00 annually).
Which has performed better historically, SGOV or SHY?
SGOV has outpaced SHY over the trailing twelve months, posting a 3.79% total return against 1.15%. The lead holds up over 5 years too: SGOV has compounded at 3.79% a year, against 1.68% for SHY. SGOV has been the steadier holding, though — annualized volatility of 0.2% against 1.6% for SHY. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.
Explore related screeners
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