SGOV vs VBIL: Vanguard Undercut the Category Leader by Three Basis Points
Vanguard launched VBIL in February 2025 doing exactly what SGOV does, for three basis points less. Same 0-3 month Treasury bills, same state tax exemption, same near-zero duration. The gap is real and it is small.
SGOV (iShares 0-3 Month Treasury Bond ETF) charges 0.09% and has been the default T-bill ETF for years. VBIL (Vanguard 0-3 Month Treasury Bill ETF) launched in February 2025 at 0.06% and gathered roughly $9.4B quickly, which is what happens when Vanguard enters a category at the lowest price. Both hold Treasury bills maturing within three months, both carry effectively zero credit risk and near-zero duration, and the interest from both is exempt from state and local income tax because it comes from direct federal obligations. The three basis point difference is $3 a year per $10,000, which is genuinely marginal. SGOV's advantage is trading volume and a longer track record; VBIL's is the lower fee and Vanguard's structural commitment to keeping it low. For a cash position held at a broker where both trade freely, this is close to a coin flip decided by fee preference.
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.
Both funds trade commission-free at every major brokerage. Where to buy them →
📋 SGOV vs VBIL: Key Facts Side by Side
| Metric | SGOV | VBIL |
|---|---|---|
| Fund Name | iShares 0-3 Month Treasury Bond ETF | Vanguard 0-3 Month Treasury Bill ETF |
| Issuer | BlackRock | Vanguard |
| Tracks Index | ICE 0-3 Month US Treasury Bill | Bloomberg US Treasury Bills 0-3 Month |
| Expense Ratio | 0.09% | 0.06% ✓ |
| Cost per $10K/yr | $9.00 | $6.00 |
| AUM | $116.8B | $14.3B |
| Holdings | 15 | 20 |
| Inception | 2020 | 2025 |
| 1-Year Return | -0.01% | +0.13% |
| 3-Year Return | +4.49% | — |
| 5-Year Return | +3.86% | — |
| Dividend Yield | 3.64% | 3.50% |
| Holdings Overlap | See holdings overlap → | |
| Avg Bid-Ask Spread | 0.01% | 0.01% |
AUM and returns updated Nov 9, 2026 from ETF BFF database; expense ratios verified against issuer filings. Returns are annualised. Not investment advice.
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📊 SGOV vs VBIL: Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Which Fund Fits Which Investor?
- already use BlackRock and prefer staying within one fund family
- want the lowest fees: saves ~$3/yr per $10K vs SGOV
- already use Vanguard and prefer staying within one fund family
💰 What the Fee Difference Actually Costs
Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.
Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.
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