A head-to-head comparison of iShares 0-3 Month Treasury Bond ETF and Vanguard Federal Money Market Fund covering yield, cost, risk, and income potential.
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.
Seeks to provide current income while maintaining liquidity and a stable share price of $1. Invests at least 99.5% of total assets in cash, U.S. government securities, and/or repurchase agreements that are collateralized fully by U.S. government securities or cash. Default settlement fund for Vanguard brokerage accounts.
Asset class
Fixed Income
Fixed Income
Inception date
05/26/2020
07/13/1981
Beta
-0.0029
0.0036
Last dividend
$0.2960
$0.0029
Ex-dividend date
07/01/2026
06/30/2026
Bottom lineSGOV and VMFXX are nearly interchangeable — both offer very similar treasury bills exposure with very similar cost and risk. Expense-ratio data isn't available for a clean cost comparison, so weigh yield, strategy, and track record instead.
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Projections assume the current yield and share price remain constant. Actual results will vary.
Quick verdict
SGOV (iShares 0-3 Month Treasury Bond ETF) is an ETF, while VMFXX (Vanguard Federal Money Market Fund) is a money market fund — they take fundamentally different approaches.
VMFXX is the larger fund by assets ($287B), which generally means tighter spreads and better liquidity.
Deep dive
Yield & income
On a $10,000 investment, SGOV would generate roughly $29.42/month, while VMFXX would produce $29.42/month, at current distribution rates. Both pay monthly distributions.
SGOV yield3.53%
VMFXX yield3.53%
Monthly diff on $10K$0.00
Cost & efficiency
SGOV charges a 0.07% expense ratio — roughly $70 over 10 years on $10,000 (simplified, not compounded). VMFXX has not published an expense ratio, so a direct cost comparison isn't possible.
SGOV ER0.07%
Strategy & risk
SGOV tracks ICE 0-3 Month US Treasury Securities Index with a treasury bond approach, while VMFXX is a money market fund. Beta is -0.0029 for SGOV and 0.0036 for VMFXX, indicating SGOV is less volatile relative to the market.
SGOV beta-0.0029
VMFXX beta0.0036
Fund details
SGOV is managed by iShares (launched 05/26/2020) with $95.2B in assets. VMFXX is managed by Vanguard (launched 07/13/1981) with $287B in assets.
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Frequently asked questions
Is SGOV or VMFXX 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 SGOV and VMFXX?
SGOV (iShares 0-3 Month Treasury Bond ETF) tracks ICE 0-3 Month US Treasury Securities Index with a treasury bond approach, while VMFXX (Vanguard Federal Money Market Fund) is a money market fund. They are issued by iShares and Vanguard respectively.
Can I hold both SGOV and VMFXX?
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.
Which has lower fees, SGOV or VMFXX?
SGOV charges a 0.07% expense ratio. VMFXX has not published an expense ratio, so a direct fee comparison isn't possible.
How much income does $10,000 in SGOV vs VMFXX generate?
At current rates, $10,000 in SGOV would generate roughly $29.42 per month ($353.00 annually). The same in VMFXX would produce about $29.42 per month ($353.00 annually).
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