VGSH vs SGOV: 1-3 Year Treasuries vs T-Bills — Not the Same Fund
Both hold U.S. Treasuries. Both are safe. But VGSH has roughly 2 years of interest rate duration — if rates rise 1%, it loses about 2% in price. SGOV's duration is about 0.1 years. For cash parking, the difference is not subtle.
VGSH (Vanguard Short-Term Treasury ETF) and SGOV (iShares 0-3 Month Treasury Bond ETF) both hold U.S. Treasury securities, but they serve meaningfully different purposes. VGSH holds Treasuries with 1-3 year maturities, giving it roughly 2 years of duration — enough interest rate sensitivity to lose 2% in price if rates rise 1 percentage point. It charges 0.04% and yields approximately 4.0-4.5% depending on the rate environment. SGOV holds only 0-3 month Treasury bills — the shortest possible Treasury maturities. Its duration is about 0.1 years, meaning rate changes have almost no effect on principal. It charges 0.09% and yields slightly more than VGSH in inverted yield curve environments (like 2022-2024), or slightly less in normal environments. For investors who want somewhere to park cash with zero duration risk and T-bill yields, SGOV is the right tool. For investors who want genuine short-term Treasury bond exposure and are comfortable with modest duration risk, VGSH is appropriate. They are not interchangeable.
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. How the major brokerages compare →
📋 VGSH vs SGOV — Key Facts Side by Side
| Metric | VGSH | SGOV |
|---|---|---|
| Fund Name | Vanguard Short-Term Treasury Index Fund ETF Shares | iShares 0-3 Month Treasury Bond ETF |
| Issuer | Vanguard | iShares |
| Tracks Index | Bloomberg U.S. 1-3 Year Treasury Index | ICE 0-3 Month US Treasury Securities Index |
| Expense Ratio | 0.04% ✓ | 0.09% |
| Cost per $10K/yr | $4.00 | $9.00 |
| AUM | $33.8B | $95.9B |
| Holdings | 100 | 20 |
| Inception | 2009 | 2020 |
| 1-Year Return | -0.87% | +0.30% |
| 3-Year Return | +4.30% | +4.64% |
| 5-Year Return | +1.88% | +3.65% |
| Dividend Yield | 3.87% | 3.85% |
| Holdings Overlap | See holdings overlap → | |
| Avg Bid-Ask Spread | 0.01% | 0.01% |
Expense ratio, AUM, and returns updated Aug 1, 2026 from ETF BFF database. Returns are annualised. Not investment advice.
📊 VGSH vs SGOV — Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Which Fund Fits Which Investor?
- want the lowest fees: saves ~$5/yr per $10K vs SGOV
- want broader diversification (100 holdings vs 20)
- already use iShares 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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❓ VGSH vs SGOV — Frequently Asked Questions
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