SGOV vs the Money Market Funds People Actually Hold
SGOV is a Treasury bill ETF, and it's the reference point for almost every "where should my cash sit" question. This hub gathers every SGOV comparison in one place: against the money market funds people actually hold, against other Treasury ETFs, and against savings accounts and buying bills yourself. All judged on the things that persist: expense ratio, state-tax treatment, and structure. Educational only, no recommendation.
| Fund | Type | Fee | State-tax exempt interest | The one-line difference |
|---|---|---|---|---|
| SGOV | Treasury bill ETF | 0.09% | Yes, nearly all of it | Lowest fee plus the state-tax break; price floats slightly instead of pegging $1 |
| SPAXX | Government money market | 0.42% | Partly, often below the CA/NY/CT threshold | Fidelity’s automatic sweep; convenience is the whole case |
| SWVXX | Prime money market | 0.34% | Generally no | Slightly higher gross yield in exchange for corporate credit exposure |
| VUSXX | Treasury money market | 0.09% | Yes, essentially all of it | SGOV’s only true peer on both fee and tax; $3,000 minimum, $1 share price |
| FDLXX | Treasury money market | 0.42% | Yes, nearly all of it | Matches SGOV on tax; the 0.33% fee gap is the entire difference |
Which cash vehicle fits which job
The right place for cash depends less on chasing the highest yield than on why you are holding it. How the common situations usually line up:
- Emergency fund you might need any day A high-yield savings account or a Treasury money market fund. FDIC insurance on the savings account and same-day access matter more here than the last few basis points of yield; a brokerage ETF takes a day or two to settle back to spendable cash.
- Cash you will need in weeks to months, held in a taxable account SGOV or VUSXX. Both are Treasury-backed, cost 0.09%, and their interest is largely exempt from state income tax, which is worth the most in high-tax states.
- Idle cash sitting in a brokerage between investments The broker's own settlement fund: VMFXX at Vanguard, or SPAXX and FDLXX at Fidelity. You trade a higher fee for automatic sweep and instant reinvestment. FDLXX keeps the Treasury state-tax break; SPAXX gives up part of it.
- Squeezing out a little more yield, with credit risk acceptable A prime money market fund like SWVXX: a slightly higher gross yield in exchange for corporate exposure and, usually, no state-tax break.
- The most after-tax yield in a high-tax state SGOV or VUSXX, because the Treasury state-tax exemption can outweigh a higher headline yield elsewhere. The state-tax breakdown shows the math state by state.
None of this is a recommendation; it is how the trade-offs usually line up. Exact fees and tax treatment are in the table above.
SGOV vs SPAXX
Fidelity's default cash sweep. Lower fee and cleaner state-tax profile favor SGOV; SPAXX wins on automatic convenience.
SGOV vs SWVXX
Schwab's prime money fund. Usually a higher gross yield with a little credit risk; SGOV keeps the state-tax break.
SGOV vs VUSXX
Vanguard's Treasury money fund. The closest matchup: same 0.09% fee, split by structure and a $3,000 minimum.
SGOV vs FDLXX
Fidelity's Treasury-only fund. Nearly matches SGOV on tax; the 0.42% fee is the gap.
SGOV vs VMFXX
Vanguard's default settlement sweep. The convenience of an automatic sweep against SGOV's purer state-tax exemption.
Want to run it on your own balance? The Cash Parking Calculator shows what a given amount keeps after fees and your state tax across a Treasury ETF, a money market fund, and a savings account.
SGOV vs other Treasury ETFs
Same idea as SGOV, short-dated US government debt, packaged with a different maturity, fee, or structure.
SGOV vs VBIL
Vanguard's T-bill ETF undercuts SGOV on fee for essentially the same bills. Newer and smaller.
SGOV vs BIL
The same T-bills at a higher fee. The cost gap is the whole story.
SGOV vs SHV
SGOV's slightly longer-dated sibling. A touch more maturity, nearly identical in practice.
SGOV vs VGSH
Short Treasuries out to three years. More price movement when rates shift than SGOV's ultra-short bills.
SGOV vs USFR
Floating-rate Treasury notes that reset with rates. Ultra-short cash through a different instrument.
SGOV vs BIL vs SHV
The three most common T-bill ETFs side by side, ranked on fee and maturity.
SGOV vs savings accounts and doing it yourself
The non-ETF options people weigh against SGOV.
SGOV vs high-yield savings
Yield, FDIC insurance, and the state-tax angle a savings account can't match.
SGOV vs buying T-bills
Whether the 0.09% fee is worth skipping the ladder-it-yourself hassle.
SGOV vs money market funds
The general case before you get to a specific fund: structure, fee, and tax.
Start with the basics
New to SGOV, or want the tax mechanic that runs through all of these?
SGOV in full
Holdings, current yield, expense ratio, and our plain-English take.
What is SGOV?
The beginner's walkthrough of how the fund actually works.
Is SGOV state-tax exempt?
The state-by-state breakdown of the Treasury exemption.
Treasury ETF guide
Every maturity from T-bills to long bonds, and where SGOV fits.
Prefer the settlement-fund angle or a broader take? See SGOV vs VMFXX (Vanguard's default sweep), SGOV vs money market funds in general, and SGOV vs buying T-bills directly. The tax mechanic that runs through all of these is in is SGOV exempt from state tax, and the full short-to-long lineup is in the Treasury ETF guide.