🤝 BFF Take
SGOV Is Better — Shorter Duration, Lower Cost, Same Government Safety
SGOV (iShares 0-3 Month Treasury Bond ETF) and SHV (iShares Short Treasury Bond ETF) are both ultra-safe cash management tools backed by US government obligations. SGOV holds Treasury bills with maturities of 0-3 months — the most liquid, shortest instruments in the US bond market — at 0.09%. SHV holds Treasuries with maturities of 1-12 months at 0.15%, giving it slightly longer duration and marginally more interest rate sensitivity. SGOV hews very closely to the current fed funds rate. SHV's slightly longer maturity means it may lag or lead rate changes depending on the rate environment. For pure cash management with maximum safety and minimum fee drag, SGOV is the preferred choice.
📋 Quick Takeaways
🏛️Both hold US Treasury obligations — the safest instruments on earth, essentially equivalent to cash
💰SGOV costs 0.09% vs SHV's 0.15% — 6 basis points cheaper for shorter, more responsive exposure
📅SGOV holds 0-3 month T-bills only; SHV holds up to 12 month maturities — SHV has slightly more duration risk
📊 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
SHV
iShares Short Treasury Bond ETF
📋 SGOV vs SHV — Key Facts Side by Side
| Metric |
SGOV |
SHV |
| Fund Name |
iShares 0-3 Month Treasury Bond ETF |
iShares Short Treasury Bond ETF |
| Issuer |
iShares |
iShares |
| Tracks Index |
ICE 0-3 Month US Treasury |
Bloomberg Short US Treasury |
| Expense Ratio |
0.09% ✓ |
0.15% |
| Cost per $10K/yr |
$9.00 |
$15.00 |
| AUM |
$38B |
$18B |
| Holdings |
7 |
20 |
| Inception |
2020 |
2007 |
| 1-Year Return |
+5.20% |
+5.10% |
| 3-Year Return |
+4.10% |
+3.90% |
| 5-Year Return |
+2.90% |
+2.70% |
| Avg Bid-Ask Spread |
0.01% |
0.01% |
Data from ETF BFF database. Returns are annualised. Not investment advice.
📊 SGOV vs SHV — Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Should You Buy SGOV or SHV?
Choose if...
SGOV
- You want the lowest fees — saves ~$6/yr per $10K vs SHV
- You already use iShares and prefer staying within their fund family
Choose if...
SHV
- You want broader diversification (20 holdings vs 7)
- You already use iShares and prefer staying within their fund family
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❓ SGOV vs SHV — Frequently Asked Questions
What is the difference between SGOV and SHV?
Both SGOV and SHV are iShares products holding short-term US Treasury obligations. SGOV specifically holds 0-3 month Treasury bills (the shortest instruments, highest government credit) at 0.09%. SHV holds US Treasuries with 1-12 month maturities at 0.15%. SGOV is slightly cheaper and its holdings mature faster — meaning it adjusts to new interest rate levels more quickly. SHV's slightly longer maturity range provides marginally more yield in some rate environments.
Is SGOV or SHV better than a money market fund?
It depends on your needs. Both SGOV and SHV are traded on exchanges and priced throughout the day — their NAV fluctuates slightly (though minimally). Money market funds maintain a stable $1.00 NAV and often serve as brokerage sweep accounts. For IRA holders or those who want to actively manage their cash allocation with exchange-traded flexibility, SGOV and SHV are excellent tools. For automatic, hands-off cash management, money market funds are more convenient.
How do SGOV and SHV compare to BIL?
BIL (SPDR Bloomberg 1-3 Month T-Bill ETF) is the State Street competitor in the same space, charging 0.1356%. SGOV at 0.09% is cheaper than BIL. SHV at 0.15% is more expensive than BIL. SGOV has gained assets rapidly since its 2020 launch and is now comparable to BIL in size. For pure T-bill exposure at lowest cost, SGOV wins.
What happens to SGOV and SHV if the Fed cuts rates?
When the Federal Reserve cuts interest rates, T-bill yields fall and so do the yields on SGOV and SHV. Because their holdings mature so quickly (weeks to months), they adjust to new rate levels rapidly. SGOV, with its 0-3 month T-bills, will adjust faster than SHV. There is no meaningful price risk — unlike long-term bonds, these funds don't fall in value when rates rise; they simply offer higher or lower yields in the new rate environment.
Can SGOV or SHV ever lose money?
The NAV of SGOV and SHV can fluctuate very slightly intraday, but permanent principal loss is essentially impossible — they hold US Treasury obligations with near-zero credit risk and maturities too short to experience meaningful interest rate losses. In a scenario where the US government defaults (which has never happened), all Treasury-backed investments would be affected. In any realistic scenario, these funds are effectively risk-free for practical purposes.
New to ETF investing? See answers to the most common ETF questions →
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.