USFR vs SGOV: Two Safe Homes for Cash
Both hold short-term US Treasury debt and are exempt from state income tax. USFR uses floating-rate notes; SGOV uses 0-3 month T-bills. The yields track closely; the fee and mechanics differ.
USFR and SGOV are both built to do the same job: hold ultra-safe, short-term US Treasury debt and pay whatever short-term rates are, with income exempt from state and local tax. SGOV (iShares 0-3 Month Treasury Bond ETF) holds a ladder of T-bills maturing within three months, so its yield rolls up to current rates as bills mature. USFR (WisdomTree Floating Rate Treasury ETF) holds floating-rate Treasury notes whose coupons reset weekly, so it also tracks current rates closely. In practice the two pay very similar yields and carry nearly identical, minimal risk. Two small differences decide it. First, fee: SGOV charges 0.09% versus USFR's 0.15%, a small but real edge that goes straight to your pocket on a holding where every basis point counts. Second, behavior when rates change: both adjust quickly, but SGOV's constant maturity rollover and USFR's weekly reset get there by slightly different paths, with no meaningful winner. For most people parking cash, SGOV's lower fee makes it the marginal pick. USFR is an equally sound choice and some investors prefer its floating-rate structure. Either beats leaving cash in a low-yield savings account.
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.
📋 USFR vs SGOV — Key Facts Side by Side
| Metric | USFR | SGOV |
|---|---|---|
| Fund Name | WisdomTree Floating Rate Treasury Fund | iShares 0-3 Month Treasury Bond ETF |
| Issuer | WisdomTree | iShares |
| Tracks Index | Bloomberg US Treasury Floating Rate | ICE 0-3 Month US Treasury |
| Expense Ratio | 0.15% | 0.09% ✓ |
| Cost per $10K/yr | $15.00 | $9.00 |
| AUM | $17.0B | $85.2B |
| Holdings | 20 | 15 |
| Inception | 2014 | 2020 |
| 1-Year Return | +4.02% | +3.98% |
| 3-Year Return | +4.65% | +4.76% |
| 5-Year Return | +3.55% | +3.52% |
| Dividend Yield | 3.96% | 3.94% |
| Holdings Overlap | Both hold US Treasury debt and are state-tax exempt, but the structure differs: USFR holds floating-rate notes that reset; SGOV holds fixed-rate 0-3 month T-bills. — see full overlap → | |
| Avg Bid-Ask Spread | 0.01% | 0.00% |
Expense ratio, AUM, and returns updated May 25, 2026 from ETF BFF database. Returns are annualised. Not investment advice.
📊 USFR vs SGOV — Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Should You Buy USFR or SGOV?
- You already use WisdomTree and prefer staying within their fund family
- You want the lowest fees — saves ~$6/yr per $10K vs USFR
- You already use iShares and prefer staying within their 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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❓ USFR vs SGOV — Frequently Asked Questions
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