🤝 BFF Take
SGOV Wins — Lower Cost, Larger AUM, Same Government-Backed Safety
SGOV (iShares 0-3 Month Treasury Bond ETF) and BIL (SPDR Bloomberg 1-3 Month T-Bill ETF) are functionally equivalent cash management tools — both hold ultra-short US Treasury bills backed by the US government. SGOV holds T-bills with 0-3 month maturities at 0.09%; BIL holds 1-3 month T-bills at 0.1356%. That 4.56 basis point fee difference matters when you're earning money market returns. SGOV has grown to a larger fund ($38B+ vs BIL's $35B) since launching in 2020. Both distribute monthly income and will track the federal funds rate closely. For parking cash with maximum government safety and minimal fee drag, SGOV is the preferred choice for new investors.
📋 Quick Takeaways
🏛️Both hold US Treasury bills — the safest short-term investment in the world
💰SGOV costs 0.09% vs BIL's 0.1356% — that 4.56 bps difference adds up on large cash balances
📅BIL launched in 2007 (more history); SGOV launched in 2020 (slightly cheaper, now similar AUM)
📊 Data-Based Take: SGOV has the lower fee
Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.
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Reviewed by a CFA® Charterholder · Data updated Jun 2026 · Educational only, not financial advice
SGOV
iShares 0-3 Month Treasury Bond ETF
BIL
SPDR Bloomberg 1-3 Month T-Bill ETF
📋 SGOV vs BIL — Key Facts Side by Side
| Metric |
SGOV |
BIL |
| Fund Name |
iShares 0-3 Month Treasury Bond ETF |
SPDR Bloomberg 1-3 Month T-Bill ETF |
| Issuer |
iShares |
State Street |
| Tracks Index |
ICE 0-3 Month US Treasury |
Bloomberg 1-3 Month US Treasury Bill |
| Expense Ratio |
0.09% ✓ |
0.14% |
| Cost per $10K/yr |
$9.00 |
$13.56 |
| AUM |
$38B |
$35B |
| Holdings |
7 |
14 |
| Inception |
2020 |
2007 |
| 1-Year Return |
+5.20% |
+5.15% |
| 3-Year Return |
+4.10% |
+4.05% |
| 5-Year Return |
+2.90% |
+2.85% |
| Avg Bid-Ask Spread |
0.01% |
0.01% |
Data from ETF BFF database. Returns are annualised. Not investment advice.
📊 SGOV vs BIL — Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Should You Buy SGOV or BIL?
Choose if...
SGOV
- You want the lowest fees — saves ~$5/yr per $10K vs BIL
- You already use iShares and prefer staying within their fund family
Choose if...
BIL
- You want broader diversification (14 holdings vs 7)
- You already use State Street and prefer staying within their fund family
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❓ SGOV vs BIL — Frequently Asked Questions
Are SGOV and BIL safe investments?
Both SGOV and BIL invest exclusively in US Treasury bills — debt issued directly by the US government with maturities under 3 months. They are among the safest investments in the world. There is no credit risk (the US government has never defaulted on T-bills), and the ultra-short maturity means minimal interest rate risk. Principal can fluctuate very slightly but the NAV is extremely stable compared to any other investment category.
Do SGOV and BIL track the federal funds rate?
Very closely, with a slight lag. T-bill rates move in response to Federal Reserve rate decisions, so when the Fed raises or cuts rates, SGOV and BIL yields adjust within days to weeks as their holdings roll over to new T-bills at current rates. This means the yield you see today reflects the current interest rate environment — you don't lock in a rate long-term.
How is SGOV different from a money market fund?
Both are ultra-safe, but with key structural differences. Money market funds (like Fidelity SPAXX or Vanguard VMFXX) maintain a stable $1.00 NAV per share; SGOV trades at a fluctuating price on an exchange throughout the day. Money market funds are typically available through brokerage sweep accounts; SGOV requires explicitly buying shares. Both can be used to earn interest on idle cash — choose based on your brokerage and convenience needs.
What yield can I expect from SGOV or BIL?
The yield closely tracks the federal funds rate minus the expense ratio. When rates are at 5%, expect roughly 4.9% from SGOV (5% - 0.09% expense ratio) and 4.86% from BIL. When rates fall, yields fall proportionally. Unlike CDs or bonds, there's no locked-in rate — you get whatever T-bills currently yield.
Is SGOV better than HYSA (high-yield savings account)?
Depends on the comparison at any given time. Some online HYSAs have offered rates similar to or even slightly above T-bill ETFs, while others lag significantly. T-bill ETFs like SGOV have advantages: they're available in any brokerage account (including IRAs), have no minimum balance or withdrawal restrictions, and offer the transparency of daily pricing. The tradeoff is you must actively manage the investment rather than automatic sweeping.
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ℹ️ Data shown is for educational purposes and may not reflect the most current figures. Returns are trailing price-based and exclude dividend reinvestment. Past performance does not guarantee future results. ETF BFF is not a licensed financial advisor — this is not personalized financial advice.