🏦 SGOV vs BIL vs SHV · T-Bill ETF Comparison
SGOV vs BIL vs SHV: Best T-Bill ETF in 2026?
All three hold U.S. Treasury bills, pay monthly, and are exempt from state and local income tax. The differences: expense ratio, maturity range, and AUM. SGOV wins on cost.
SGOV: 0.09% · 0-3 month T-bills
BIL: 0.135% · 1-3 month T-bills
SHV: 0.15% · 0-12 month T-bills
SGOV vs BIL vs SHV: Side-by-Side
|
SGOV Lowest cost |
BIL |
SHV |
| Full name | iShares 0-3 Month Treasury Bond ETF | SPDR Bloomberg 1-3 Month T-Bill ETF | iShares Short Treasury Bond ETF |
| Issuer | iShares | SPDR | iShares |
| Expense ratio |
0.09% |
0.14% |
0.15% |
| AUM | $32B | $40B | $22B |
| Maturity range | 0-3 months | 1-3 months | 0-12 months |
| Duration | ~0.08 years | ~0.10 years | ~0.25 years |
| State tax exempt | Yes | Yes | Yes |
| Payment frequency | Monthly | Monthly | Monthly |
| Inception | 2020 | 2007 | 2007 |
| 1-year return | +5.3% | +5.2% | +5.2% |
| 3-year return | +3.6% | +3.5% | +3.5% |
Returns approximate. Past performance does not guarantee future results.
The BFF Take
SGOV for most investors. At 0.09%, it is 4.5 basis points cheaper than BIL and 6 basis points cheaper than SHV. On $100,000 held for a year, that gap is $45-$60 in additional cost for BIL and SHV respectively. All three hold U.S. Treasury bills, pay monthly distributions, and produce income exempt from state and local income tax. SGOV and BIL are nearly identical in duration (~0.08-0.10 years) — the main difference is SGOV's lower cost versus BIL's larger AUM ($40B vs $32B). SHV holds T-bills up to 12 months, giving it marginally more duration exposure and in some rate environments a slightly higher yield. BIL wins for investors at brokerages where BIL trades commission-free but SGOV does not. For everyone else: SGOV.
Who Each Fund Is Built For
SGOV
Best for
- Lowest cost T-bill ETF at 0.09%
- Cash parking with state tax exemption
- Near-zero duration — safe in any rate environment
- Monthly income distribution
BIL
Best for
- Commission-free at SPDR-partner brokerages
- Largest AUM for maximum liquidity ($40B)
- Longest T-bill ETF track record (since 2007)
- Institutional-scale cash management
SHV
Best for
- iShares users who want slightly longer maturities
- Minor yield pickup in normal (non-inverted) curves
- Long track record (since 2007)
- Portfolios where up to 12-month T-bills are wanted
Frequently Asked Questions
What is the difference between SGOV, BIL, and SHV?
All three hold U.S. Treasury bills and are state tax exempt. The differences: expense ratio (SGOV 0.09%, BIL 0.135%, SHV 0.15%) and maturity range (SGOV: 0-3 months, BIL: 1-3 months, SHV: 0-12 months). SGOV is the cheapest. BIL is the largest by AUM. SHV extends slightly further on the yield curve. For most cash-parking purposes, SGOV's cost advantage is the primary differentiator.
Are SGOV, BIL, and SHV state tax exempt?
Yes. All three hold U.S. Treasury bills, and Treasury interest is exempt from state and local income tax in all 50 states. This makes them more tax-efficient than money market funds (which often include some state-taxable holdings), high-yield savings accounts, and CDs in high-tax states. For investors in California (top rate 13.3%), New York City, or New Jersey, the state tax exemption meaningfully increases after-tax yield. Federal income tax still applies. See the
full state-by-state breakdown for exact numbers by state.
Is SGOV better than a high-yield savings account?
Typically yes for investors in states with income tax. SGOV's yield tracks the 0-3 month T-bill rate, approximately 3.7% gross as of mid-July 2026. High-yield savings accounts (HYSAs) advertise similar rates, but interest is fully state-taxable as ordinary income. In a state with 10% income tax, SGOV's effective $1 of interest keeps $1.00; a HYSA keeps $0.90. The tradeoff: SGOV requires a brokerage account and has no FDIC insurance (it is backed by U.S. Treasury obligations). HYSAs are FDIC insured up to $250,000.
Can I lose money in SGOV, BIL, or SHV?
Extremely unlikely. All three hold U.S. Treasury securities — the reference point for risk-free assets. The primary risk is U.S. government default, which has never occurred. A temporary price decline could occur if rates spike sharply, but because T-bill maturities are 0-3 months, the fund rolls to higher-rate T-bills within weeks, limiting any decline. In practice, these funds have never experienced a meaningful calendar-year loss. Capital is not guaranteed like an FDIC-insured deposit, but U.S. Treasuries are the closest thing to it.
Past performance does not guarantee future results. Fund data is approximate. Nothing on ETF BFF is personalized financial advice.