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. Where to buy them →
📋 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 | $39.2B | $106.0B |
| Holdings | 100 | 20 |
| Inception | 2009 | 2020 |
| 1-Year Return | -2.01% | -0.02% |
| 3-Year Return | +4.09% | +4.57% |
| 5-Year Return | +1.83% | +3.76% |
| Dividend Yield | 3.82% | 3.74% |
| Holdings Overlap | See holdings overlap → | |
| Avg Bid-Ask Spread | 0.01% | 0.01% |
Expense ratio, AUM, and returns updated Sep 22, 2026 from ETF BFF database. Returns are annualised. Not investment advice.
You just compared two funds. Get the next one figured out for you.
One clear ETF breakdown in your inbox every week: fees, holdings, and the honest verdict. Free.
One email a week · No spam, unsubscribe anytime
📊 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.
⚙️ Want the Full Interactive Comparison?
Side-by-side holdings overlap, sector breakdown, and live performance tabs, all in one place.
Run Full VGSH vs SGOV Comparison → Free · No signup · Instant results❓ VGSH vs SGOV: Frequently Asked Questions
New to ETF investing? See answers to the most common ETF questions →