⚖️ TLT vs SGOV Comparison · Free & No Signup

TLT vs SGOV: Long Bonds vs Cash, and the Risk Between Them

Name: TLT vs SGOV: expense ratio, index, holdings and returns
Creator: ETF BFF
License: https://etfbff.com/about/

Both hold US Treasuries, but at opposite ends of the maturity ladder. TLT is a bet on interest rates with equity-like swings. SGOV is a place to park cash. They do completely different jobs.

💰 SGOV is cheaper 🔬 Compare top 10 holdings → 💡 Plain-English verdict

🤝 BFF Take

Same Issuer, Opposite Risk. TLT Moves With Rates; SGOV Does Not.

TLT (iShares 20+ Year Treasury Bond ETF) and SGOV (iShares 0-3 Month Treasury Bond ETF) both hold US government debt, but that is where the similarity ends. TLT owns Treasuries that mature in 20 years or more, so its price swings sharply whenever long-term interest rates move. When rates rose over the past few years, TLT fell hard, posting losses that look more like a stock than a bond fund. SGOV owns Treasury bills that mature in weeks, so its price barely moves and almost all of its return is the yield it pays, currently around 4%. That makes this a risk comparison, not a yield one. The two pay a broadly similar yield, but TLT carries enormous price risk to earn it and SGOV carries almost none. Hold TLT if you specifically want duration: a position that rises when long-term rates fall, useful as a rate bet or a hedge against a recession, and you can stomach double-digit swings. Hold SGOV if you want your money stable and liquid while it earns the short-term risk-free rate. Both are exempt from state income tax because Treasury interest is. The common mistake is buying TLT "for income" when its yield is similar to SGOV's but comes with vastly more risk. If you want safe yield, that is SGOV's job, not TLT's.

📋 Quick Takeaways

📏TLT holds 20+ year Treasuries (0.15%); SGOV holds 0-3 month T-bills (0.09%). Same issuer, opposite ends of the maturity ladder.

🎢TLT's price swings hard with interest rates and fell sharply as rates rose. SGOV's price barely moves; its return is almost entirely yield.

🎯This is a risk decision, not a yield one: TLT for a rate bet or duration hedge, SGOV for safe, liquid cash. Both are state-tax exempt.

Both funds trade commission-free at every major brokerage. Where to buy them →

✓ ETF BFF Editorial Team · Data as of Oct 7, 2026 · Educational only, not financial advice

TLT

iShares 20+ Year Treasury Bond ETF

Expense Ratio

0.15%

1-Year Return

-13.3%

AUM

$46.2B

Holdings

SGOV

iShares 0-3 Month Treasury Bond ETF

Expense Ratio

0.09% ✓

1-Year Return

+0.0%

AUM

$112.3B

Holdings

📋 TLT vs SGOV: Key Facts Side by Side

Metric	TLT	SGOV
Fund Name	iShares 20+ Year Treasury Bond ETF	iShares 0-3 Month Treasury Bond ETF
Issuer	iShares	iShares
Tracks Index	ICE US Treasury 20+ Year	ICE 0-3 Month US Treasury
Expense Ratio	0.15%	0.09% ✓
Cost per $10K/yr	$15.00	$9.00
AUM	$46.2B	$112.3B
Holdings	45	15
Inception	2002	2020
1-Year Return	-13.34%	+0.00%
3-Year Return	+0.69%	+4.52%
5-Year Return	-8.47%	+3.79%
Dividend Yield	5.00%	3.69%
Holdings Overlap	See holdings overlap →
Avg Bid-Ask Spread	0.01%	0.01%

AUM and returns updated Oct 7, 2026 from ETF BFF database; expense ratios verified against issuer filings. Returns are annualised. Not investment advice.

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📊 TLT vs SGOV: Annualised Returns

Annualised returns (trailing, price-based). Past performance does not guarantee future results.

🎯 Which Fund Fits Which Investor?

Often fits investors who...

TLT

want broader diversification (45 holdings vs 15)
want income and stability with lower portfolio volatility

Often fits investors who...

SGOV

want the lowest fees: saves ~$6/yr per $10K vs TLT

💰 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.

Investment amount$ Years held Expected annual return%

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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❓ TLT vs SGOV: Frequently Asked Questions

What is the difference between TLT and SGOV?

Maturity, and therefore risk. TLT holds Treasury bonds that mature in 20 years or more, so its price moves a lot when interest rates change. SGOV holds Treasury bills that mature within about three months, so its price is nearly flat and its return is almost all yield. Both are US Treasury funds from iShares, both are exempt from state income tax, and they currently pay a broadly similar yield. The difference is that TLT takes large price risk to earn that yield while SGOV takes almost none.

Is TLT or SGOV safer?

SGOV is far more stable. Because its bills mature in weeks, SGOV's share price barely moves, which is why it is used as a cash substitute. TLT can swing 10% or more in a year as long-term rates move, so while it has no credit risk (it holds US Treasuries), it has heavy interest-rate risk. Neither can default in any meaningful sense, but "safe" usually means stable, and that is SGOV. TLT is safe from default and risky on price.

Why did TLT lose money while SGOV did not?

Interest rates. When rates rise, the price of existing long-term bonds falls, and the longer the maturity, the harder the fall. TLT holds the longest Treasuries, so the rate increases of recent years hit it directly, producing losses. SGOV holds bills that mature in weeks and are constantly rolled over at the new, higher rate, so rising rates actually lifted its yield rather than hurting its price. That is the clearest illustration of duration risk you will find.

Should I hold TLT or SGOV for income?

For steady income with little risk, SGOV fits better. Its yield is close to TLT's right now, but it comes without the price swings, so you are not risking a double-digit drawdown to earn it. TLT makes more sense if you specifically want a position that gains when long-term rates fall, for example as a hedge or a deliberate bet on rate cuts, and you accept the volatility that comes with it. Buying TLT purely for its yield, expecting bond-like stability, is the mismatch that surprises people.

Are TLT and SGOV state-tax exempt?

Yes, both. The income from US Treasury securities is generally exempt from state and local income tax, and both funds hold Treasuries directly, so their distributions carry that exemption. In a high-tax state this can meaningfully improve the after-tax yield of either fund compared with a taxable alternative like a corporate bond fund or a bank savings account.

New to ETF investing? See answers to the most common ETF questions →

📄 TLT & SGOV Fact Sheets

TLT Fact Sheet→ SGOV Fact Sheet→

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.