What Is SGOV? iShares 0-3 Month Treasury Bond ETF
Short answer
SGOV is an exchange-traded fund that holds ultra-short US Treasury bills maturing in 0 to 3 months, making it function much like a cash-equivalent or money-market alternative. Because its holdings mature within weeks, it carries near-zero interest-rate risk and its price stays very stable, while it pays out income monthly. Its yield closely tracks short-term Treasury rates, recently around 3.9%. It competes with funds like BIL and SHV and with traditional money market funds, differing mainly in expense ratio, exact maturity range, and the tax treatment of Treasury income.
SGOV is issued by iShares (BlackRock) and tracks ICE 0-3 Month US Treasury Securities Index. It charges a 0.09% expense ratio, holds approximately approximately $90 billion in assets under management, yields about approximately 3.9% (SEC yield, early 2026), and launched in May 26, 2020.
What is SGOV?
SGOV is an exchange-traded fund that holds ultra-short US Treasury bills maturing in 0 to 3 months, making it function much like a cash-equivalent or money-market alternative. Because its holdings mature within weeks, it carries near-zero interest-rate risk and its price stays very stable, while it pays out income monthly. Its yield closely tracks short-term Treasury rates, recently around 3.9%. It competes with funds like BIL and SHV and with traditional money market funds, differing mainly in expense ratio, exact maturity range, and the tax treatment of Treasury income.
SGOV is issued by iShares (BlackRock) and tracks ICE 0-3 Month US Treasury Securities Index, so a single ticker gives you the whole basket of underlying holdings weighted by the index's methodology rather than by any active stock-picking.
SGOV holdings: what's actually inside
SGOV does not hold a basket of individual stocks. It gets its exposure synthetically, through derivatives such as swaps and futures rather than by owning the underlying shares, so there is no conventional top-10 equity holdings list. See the description above for what SGOV actually tracks and how that exposure is built.
The bottom line on SGOV
SGOV is a low-cost, highly liquid way to hold short-term US Treasuries and earn money-market-like income with minimal price volatility. Its yield moves with short-term interest rates, so the income it produces would decline if the Federal Reserve cuts rates.
More on SGOV
Whether SGOV is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is SGOV a buy?
SGOV yields approximately 3.9% (SEC yield, early 2026) as of early 2026, paid by passing through the dividends of its underlying holdings. For the payout schedule, history, and how the distributions are taxed, see SGOV dividend: yield and schedule.
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FAQ
What is SGOV?
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SGOV is the iShares 0-3 Month Treasury Bond ETF, issued by iShares (BlackRock). It holds US Treasury bills maturing within three months and tracks the ICE 0-3 Month US Treasury Securities Index. It is widely used as a cash-equivalent that pays monthly income with very little interest-rate risk.
What is SGOV's expense ratio?
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SGOV has an expense ratio of about 0.09%, which is low for a fixed-income ETF. On a $10,000 investment that works out to roughly $9 per year in fund fees, making it an inexpensive way to hold short-term Treasuries.
What does SGOV hold?
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SGOV holds US Treasury bills with remaining maturities of three months or less, not stocks. The portfolio is made up entirely of these short-dated government securities, which is why the fund behaves like a cash-equivalent rather than an equity or long-bond fund.
How does SGOV compare to BIL and a money market fund?
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SGOV, BIL, and SHV all hold short-term US Treasuries, with small differences in maturity range and expense ratio. SGOV's roughly 0.09% fee is competitive, and unlike a traditional money market fund it trades intraday like a stock. A money market fund typically holds a NAV of $1.00 and may include non-Treasury instruments, while SGOV's share price drifts slightly with accrued interest and its income comes purely from Treasuries.
What is SGOV's yield?
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SGOV's SEC yield has recently been around 3.9% as of early 2026, though this figure changes as short-term Treasury rates move. The yield closely mirrors prevailing rates on 0 to 3 month T-bills, so it can shift meaningfully over time.
Is SGOV a good investment?
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SGOV can suit investors looking for a low-risk place to hold cash and earn short-term Treasury income, but whether it fits any individual depends on goals, time horizon, and tax situation. Walnut is informational, not investment advice, so consider your own circumstances or consult a licensed professional before investing.
Will SGOV's yield fall if the Federal Reserve cuts rates?
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Yes. SGOV's income is driven by the yields on the short-term Treasury bills it holds, which are heavily influenced by the Federal Reserve's policy rate. If the Fed cuts rates, the bills in the portfolio reprice lower as they mature and roll over, so SGOV's payouts would generally decline over the following weeks and months.
Is SGOV's income exempt from state taxes?
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Income from US Treasury securities is generally exempt from state and local income taxes, and because SGOV holds almost entirely Treasury bills, a large share of its distributions typically qualifies for that exemption. It remains subject to federal income tax, and the exact exempt percentage is reported by the fund each year, so check the official tax documents and your own situation.
How do I compare SGOV to similar ETFs?
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Put a few fields side by side: the expense ratio (fees compound over decades), the index or strategy it tracks, the top holdings and how much they overlap with what you already own, the dividend yield, and the AUM, liquidity, and bid-ask spread that affect trading costs. For index funds, tracking error (how closely it follows its index) and tax efficiency matter too. SGOV's figures are above; the full method is in Walnut's guide on how to compare ETFs.
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Walnut is informational, not investment advice. Holdings weights and fund statistics on this page are approximations stamped to early 2026; verify current figures against iShares (BlackRock)'s fund page or your broker before investing.