Generated August 15, 2026.
Figures quoted in this analysis are from its generation date and may lag the live snapshot table above, which always shows the latest data.
Overview
SGOV and TLT are both iShares Treasury ETFs, but they occupy opposite ends of the maturity spectrum. SGOV holds Treasury bills maturing in three months or less, while TLT holds long-dated Treasuries with 20+ years to maturity. That maturity gap creates vastly different interest-rate sensitivities, yield profiles, and use cases.
How they differ
The single biggest difference is maturity. SGOV tracks bills expiring in 90 days or fewer, while TLT holds bonds maturing two decades out or longer. That explains the second key difference: yield versus duration risk. SGOV yields 3.66% with virtually no price sensitivity to rate moves (beta of –0.0029), while TLT yields 4.83% but carries a beta of 2.4, meaning a 1% rise in long-term rates could drop its price roughly 2.4%. SGOV is priced near par ($100.56) because its holdings mature so quickly; TLT trades at a significant discount ($82.04) reflecting the bond market's repricing of its long-duration holdings. SGOV also charges 0.07% in annual expenses versus TLT's 0.15%, though the difference is trivial at this scale; the real trade is yield predictability (SGOV) versus yield size (TLT).
Who each is best for
SGOV: Fits investors seeking a Treasury-backed cash alternative with monthly income and zero interest-rate risk—useful for parking near-term reserves or building a bond-ladder foundation without betting on long-term rate direction.
TLT: Designed for investors with a longer time horizon who can tolerate significant price swings in exchange for higher current yield and potential capital appreciation if long-term rates fall.
Key risks to know
- Duration risk on TLT: A 1% rise in long-term Treasury yields could reduce TLT's NAV by roughly 2.4%, while SGOV's price remains essentially flat across rate environments. Investors treating TLT as a yield-and-hold vehicle without accounting for mark-to-market losses may be disappointed.
- Rollover and reinvestment on SGOV: Because SGOV holds bills expiring in days or weeks, its yields reset very frequently with market-rate changes. A sharp drop in short-term rates would materially lower future distributions within weeks; SGOV is not a fixed-income set-and-forget holding.
- Opportunity cost trade-off: TLT's 1.17 percentage-point yield advantage over SGOV reflects compensation for duration risk. If rates remain stable or fall, TLT's extra yield compounds nicely; if rates rise sharply, that yield advantage disappears behind principal losses.
Bottom line
SGOV works for investors who want Treasury exposure with stable NAV and predictable monthly cash flow; TLT rewards those comfortable with price volatility in exchange for higher current income. The choice hinges on whether you're prioritizing capital stability and frequent reinvestment flexibility or accepting rate risk for extra yield. Past performance doesn't predict future results.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
