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Dividend Vision

ETF Comparison

TLT vs SGOV: How Much Rate Risk Do You Want?

A head-to-head of the iShares 20+ Year Treasury Bond ETF and the 0-3 Month Treasury Bond ETF covering duration, payout, cost, and cash versus long-bond risk.

Updated October 2, 2026

How these figures are calculated: methodology.

Best for

  • SGOVInvestors who want fixed-income ballast that steadies the portfolio when stocks fall.
  • TLTInvestors who want higher current income (4.83% vs 3.60% for SGOV).

Jump to the side-by-side numbers

Visual comparison

Key metrics

Projected income on $10K

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 TLT over the trailing twelve months, posting a 3.79% total return against -9.20%. The lead holds up over 5 years too: SGOV has compounded at 3.79% a year, against -8.60% for TLT. SGOV has been the steadier holding, though — annualized volatility of 0.2% against 13.3% for TLT. 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.
SymbolYTD cumulative1Y cumulative3Y annualized5Y annualizedSince May 2020Volatility Sharpe Sortino Max drawdown
SGOV2.73%3.79%4.55%3.79%2.99%0.2%-0.15-0.24-0.0%
TLT-7.87%-9.20%0.43%-8.60%-8.16%13.3%-0.31-0.42-16.2%

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.
MetricSGOVTLT
Full nameiShares 0-3 Month Treasury Bond ETFiShares 20+ Year Treasury Bond ETF
IssueriSharesiShares
Underlying indexICE 0-3 Month US Treasury Securities IndexICE U.S. Treasury 20+ Year Bond Index
Last Close$100.44 as of October 2, 2026$77.48 as of October 2, 2026
Distribution rate3.60%4.83%
Trailing 12-month yield3.65%5.02%
Distribution Safety Score™ 7996
Safety-Adjusted Yield 2.84%4.64%
Expense ratio0.09%0.15%
AUM$112B$45.8B
Distribution frequencyMonthlyMonthly
ObjectiveSeeks to track an index of U.S. Treasury obligations maturing in three months or less, investing at least 90% of assets in U.S. Treasury securities.Provide exposure to the fund's underlying index or strategy per issuer materials.
Asset classFixed IncomeFixed Income
Inception date05/26/202007/22/2002
Beta-0.00292.39
Last dividend$0.301 declared, pays 10/06/2026$0.312 declared, pays 10/06/2026
Ex-dividend date10/01/202610/01/2026

Bottom lineChoose SGOV if you want fixed-income ballast that steadies the portfolio when stocks fall. Choose TLT if you want higher current income (4.83% vs 3.60% for SGOV).

SGOV vs TLT: cash bills or long-duration Treasuries?

Both are US Treasuries. TLT takes decades of rate risk. SGOV barely moves. They are not substitutes.

SGOVTLT
What it holdsICE 0-3 Month US Treasury Securities IndexICE U.S. Treasury 20+ Year Bond Index
Rate sensitivityMinimal: bills roll within monthsHigh: 20+ year duration
Expense ratio0.09%0.15%
Distribution rate3.60%4.83%
RoleParked cashLong-rate / ballast sleeve
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Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

iShares
ETFs466
Total AUM$4683B

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 TLT.

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Quick verdict

SGOV (iShares 0-3 Month Treasury Bond ETF) and TLT (iShares 20+ Year Treasury Bond ETF) are both monthly-pay dividend ETFs, but they take different approaches.

TLT offers the higher yield at 4.83% vs 3.60% for SGOV. 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 TLT is linked to ICE U.S. Treasury 20+ 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.

Who should choose each?

Choose SGOV

iShares 0-3 Month Treasury Bond ETF

  • Want fixed-income ballast that cushions equity drawdowns.
  • Want to keep costs low — a 0.09% expense ratio vs 0.15% for TLT.
  • Prefer lower volatility — a beta of -0.0 vs 2.4 for TLT.

Choose TLT

iShares 20+ Year Treasury Bond ETF

  • Want higher current income — TLT yields 4.83% vs 3.60% for SGOV.
  • Want fixed-income ballast that cushions equity drawdowns.

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, SGOV would generate roughly $30.00 cash per distribution, while TLT would produce $40.25 cash per distribution, at current distribution rates. Both pay monthly distributions.

SGOV yield3.60%
TLT yield4.83%
Cash diff on $10K$10.25

Cost & efficiency

Over 10 years on $10,000, SGOV would cost approximately $90 in fees vs $150 for TLT (simplified, not compounded). The $60.00 difference may be offset by yield or performance.

SGOV ER0.09%
TLT ER0.15%

Strategy & risk

SGOV tracks ICE 0-3 Month US Treasury Securities Index with a bonds approach, while TLT tracks ICE U.S. Treasury 20+ Year Bond Index with a treasury approach. Beta is -0.0029 for SGOV and 2.39 for TLT, making SGOV the less volatile of the two by this measure.

SGOV beta-0.0029
TLT beta2.39

Fund details

SGOV is managed by iShares (launched 05/26/2020) with $112B in assets. TLT is managed by iShares (launched 07/22/2002) with $45.8B in assets.

SGOV AUM$112B
TLT AUM$45.8B
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Frequently asked questions

What is the difference between TLT and SGOV?

Duration is the whole decision. TLT (iShares 20+ Year Treasury Bond ETF) holds ICE U.S. Treasury 20+ Year Bond Index — bonds that run out 20 years and more — so the share price jumps when yields fall and drops when they rise. SGOV (iShares 0-3 Month Treasury Bond ETF) rolls ICE 0-3 Month US Treasury Securities Index, so its price barely moves and its payout follows policy rates within weeks. Cost is 0.15% versus 0.09%; distributions are 4.83% and 3.60% as of October 2026. TLT is a long-rate bet, not a cash substitute.

What is the current distribution rate for SGOV and TLT?

SGOV currently distributes 3.60% and TLT 4.83%, 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 TLT better for dividend income?

It depends on your goals. TLT 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 TLT?

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 TLT safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — TLT scores 96, SGOV scores 79, so TLT's payout currently looks the more resilient of the two. SGOV has also shown lower price volatility (beta -0.00 vs 2.39 for TLT). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, SGOV or TLT?

SGOV has an expense ratio of 0.09% while TLT 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 TLT generate?

At current rates, $10,000 in SGOV would generate roughly $30.00 cash per distribution ($360.00 annually). The same in TLT would produce about $40.25 cash per distribution ($483.00 annually).

Which has performed better historically, SGOV or TLT?

SGOV has outpaced TLT over the trailing twelve months, posting a 3.79% total return against -9.20%. The lead holds up over 5 years too: SGOV has compounded at 3.79% a year, against -8.60% for TLT. SGOV has been the steadier holding, though — annualized volatility of 0.2% against 13.3% for TLT. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

SGOV vs TLT — at a glance

Generated October 3, 2026.

Overview

SGOV and TLT are both Treasury-focused ETFs from iShares, but they operate at opposite ends of the maturity spectrum. SGOV holds U.S. Treasury bills maturing within three months, while TLT holds Treasury bonds maturing in 20+ years. This difference drives everything else: yield, interest-rate sensitivity, price stability, and risk profile.

How they differ

The core distinction is maturity exposure. SGOV tracks the ICE 0-3 Month U.S. Treasury Securities Index, making it functionally a money-market substitute with minimal interest-rate risk. TLT holds the ICE U.S. Treasury 20+ Year Bond Index, so it carries substantial duration risk and responds dramatically to rate moves. This shows up in beta: SGOV's beta is –0.0029 (nearly inert to equity market swings), while TLT's is 2.39 (moves sharply with long-rate volatility).

Yield reflects maturity as well. SGOV distributes 3.60%, while TLT yields 4.83% — a difference driven by the Treasury curve's slope, not fund management. SGOV holds $112B in assets, more than triple TLT's $45.8B, reflecting its appeal as a cash-like alternative.

Who each is best for

  • SGOV: Fits investors seeking parking for cash reserves or emergency liquidity while earning current Treasury rates, with no appetite for price fluctuation or interest-rate timing risk.
  • TLT: Fits investors building a core Treasury allocation who can tolerate meaningful price swings from rate moves and want to capture the yield step-up that comes with longer-duration exposure.

Key risks to know

  • Duration risk in TLT. With a 20+ year underlying maturity, TLT's price swings sharply when long-term rates change. A 1% rise in the 20-year yield would pressure TLT's NAV substantially; SGOV faces no such exposure since it holds securities maturing within months.
  • Yield compression and reinvestment in SGOV. At 3.60%, SGOV's yield tracks the short end of the Treasury curve closely. If short-rate policy changes, the distribution will follow with a lag; investors depending on steady income should verify the current rate environment.
  • Rate environment assumption in TLT. A rising-rate regime would erode TLT's price, while falling rates could amplify gains. The fund's returns depend materially on directional interest-rate forecasts, unlike SGOV's more stable path.

Bottom line

If you want to hold Treasury exposure with minimal price volatility and steady short-term yield, SGOV fills that role. If you're comfortable with duration risk and seeking the higher yield that comes from longer-maturity bonds, TLT offers that trade-off. The choice hinges on your rate outlook and ability to tolerate price swings — not on which fund is "better," but on which risk profile aligns with your time horizon.

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.

Bond fund basics How to read a fund's stats Why total return beats chasing yield T-bills vs. money market funds vs. CDs

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These comparisons follow the Dividend Vision methodology.