ETF Comparison

SGOV vs TLT: Which Is the Better Pick in 2026?

A head-to-head comparison of iShares 0-3 Month Treasury Bond ETF and iShares 20+ Year Treasury Bond ETF covering yield, cost, risk, and income potential.

Data updated July 4, 2026

iShares

ETFs481

Total AUM$4451B

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.

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Side-by-side snapshot

	SGOV	TLT
Full name	iShares 0-3 Month Treasury Bond ETF	iShares 20+ Year Treasury Bond ETF
Issuer	iShares	iShares
Last Close	$100.44 as of July 4, 2026	$85.51 as of July 4, 2026
Distribution yield	3.54%	4.46%
Distribution Safety Score	71	96
Expense ratio	0.07%	0.15%
AUM	$95.2B	$40.7B
Distribution frequency	Monthly	Monthly
Underlying index	ICE 0-3 Month US Treasury Securities Index	ICE U.S. Treasury 20+ Year Bond Index
Objective	Treasury Bond	Provide exposure to the fund's underlying index or strategy per issuer materials.
Asset class	Fixed Income	Fixed Income
Inception date	05/26/2020	07/22/2002
Beta	-0.0029	2.38
Last dividend	$0.2960	$0.3180
Ex-dividend date	08/03/2026	08/03/2026

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

SGOV has outpaced TLT over the trailing twelve months, posting a 3.33% total return against 0.67%. The lead holds up over 5 years too: SGOV has compounded at 3.48% a year, against -6.92% for TLT. SGOV has been the steadier holding, though — annualized volatility of 0.3% against 13.9% for TLT. Figures are total returns: price change plus every distribution reinvested.

Symbol	YTD	1Y	3Y	5Y	Since May 2020	Volatility	Sharpe	Sortino	Max drawdown
SGOV	1.20%	3.33%	4.48%	3.48%	2.86%	0.3%	-0.31	-0.37	-0.3%
TLT	-0.28%	0.67%	-1.97%	-6.92%	-7.29%	13.9%	-0.47	-0.64	-18.9%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 2, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since May 2020” measures every fund from May 28, 2020 — the youngest fund's first trading day — 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.

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 4.46% vs 3.54% 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 0.07% compared to 0.15%.

They track different benchmarks: SGOV is linked to ICE 0-3 Month US Treasury Securities Index while TLT tracks ICE U.S. Treasury 20+ Year Bond Index, which means their performance drivers differ.

SGOV is the larger fund by assets ($95.2B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, SGOV would generate roughly $29.50/month, while TLT would produce $37.17/month, at current distribution rates. Both pay monthly distributions.

SGOV yield3.54%

TLT yield4.46%

Monthly diff on $10K$7.67

Cost & efficiency

Over 10 years on $10,000, SGOV would cost approximately $70 in fees vs $150 for TLT (simplified, not compounded). The $80.00 difference may be offset by yield or performance.

SGOV ER0.07%

TLT ER0.15%

Strategy & risk

SGOV tracks ICE 0-3 Month US Treasury Securities Index with a treasury bond approach, while TLT tracks ICE U.S. Treasury 20+ Year Bond Index with a treasury approach. Beta is -0.0029 for SGOV and 2.38 for TLT, indicating SGOV is less volatile relative to the market.

SGOV beta-0.0029

TLT beta2.38

Fund details

SGOV is managed by iShares (launched 05/26/2020) with $95.2B in assets. TLT is managed by iShares (launched 07/22/2002) with $40.7B in assets.

SGOV AUM$95.2B

TLT AUM$40.7B

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Frequently asked questions

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.

What is the difference between SGOV and TLT?

SGOV (iShares 0-3 Month Treasury Bond ETF) tracks ICE 0-3 Month US Treasury Securities Index with a treasury bond approach, while TLT (iShares 20+ Year Treasury Bond ETF) tracks ICE U.S. Treasury 20+ Year Bond Index with a treasury approach. They are issued by iShares and iShares respectively.

Can I hold both SGOV and TLT?

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, SGOV or TLT?

SGOV has an expense ratio of 0.07% 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 $29.50 per month ($354.00 annually). The same in TLT would produce about $37.17 per month ($446.00 annually).

Which has performed better historically, SGOV or TLT?

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SGOV vs TLT — at a glance

Generated June 2026 from current fund data.

Overview

SGOV and TLT are both Treasury bond ETFs tracking US government debt, but they operate at opposite ends of the maturity spectrum. SGOV holds short-term Treasury bills maturing in 0–3 months, while TLT focuses on long-term bonds with 20+ year maturities. The result is a stark difference in yield, price sensitivity, and portfolio role: SGOV functions as a cash-equivalent holding, while TLT delivers higher income but with meaningful interest-rate risk.

How they differ

The fundamental difference is maturity: SGOV's ultra-short duration means its price barely moves with interest-rate changes (beta of –0.0029), while TLT's long duration creates substantial price volatility tied to rate shifts (beta of 2.38). This maturity gap also explains yield: TLT's 4.62% distribution rate reflects the longer-term risk premium, while SGOV's 3.57% aligns with near-term Treasury rates. Both charge minimal fees—SGOV at 0.07% and TLT at 0.15%—but SGOV's $95.2 billion in assets dwarfs TLT's $40.7 billion, reflecting SGOV's appeal as a cash-management tool. Both pay distributions monthly, so reinvestment frequency is identical.

Who each is best for

SGOV: Fits investors seeking a low-volatility core holding that replaces money-market funds or short-term deposits—those who prioritize capital preservation and predictable monthly income over total return and can tolerate minimal price movement.

TLT: Fits investors comfortable with interest-rate sensitivity who view rising income and potential price appreciation (if rates fall) as meaningful portfolio drivers, and who have a longer time horizon to absorb interim NAV fluctuations.

Key risks to know

Interest-rate risk in TLT. A rise in long-term rates will push TLT's NAV down materially; a 1% move in yields could translate to a 15%+ price decline given the fund's duration profile. SGOV's short maturity shields it from this risk almost entirely.

Reinvestment risk in SGOV. As bills mature monthly, proceeds are reinvested at whatever current Treasury rates are available. If short-term rates fall sharply, SGOV's yield will compress faster than TLT's, which is locked into longer-dated coupons.

Opportunity cost of TLT during rising-rate environments. If the Fed tightens and long-term yields climb, TLT holders will experience NAV erosion while missing out on the higher yields available to new investors entering the market.

Credit risk (minimal but nonzero). Both hold US Treasury obligations, so default risk is negligible; however, any structural change in US creditworthiness would affect both equally.

Bottom line

SGOV and TLT solve different problems. If you need a stable, liquid cash substitute with monthly income and zero duration risk, SGOV's massive asset base and minimal volatility stand out. If you prioritize higher yield and can accept that your NAV will swing with long-term interest rates, TLT's 4.62% distribution and longer maturity profile offer a different tradeoff. Past performance doesn't guarantee future results, and both funds track Treasury benchmarks—their returns depend entirely on how rates evolve over your holding period.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.