Dividend comparison

SCHO vs SGOV: Which Is Better for Income?

Fees, yield, total returns, drawdowns, holdings overlap and dividend history for Schwab Short-Term U.S. Treasury ETF and iShares 0-3 Month Treasury Bond ETF, side by side. Updated October 21, 2026.

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SCHO vs SGOV: key differences
The short answer, from the latest data on this page.
  • Fees. SCHO is cheaper at 0.03% a year versus 0.09% for SGOV. On $10,000 that is $6 a year less in fees.
  • Income. SCHO pays more income, yielding 3.84% over the last twelve months versus 3.64% for SGOV. That is about $20 more a year on $10,000. Both pay monthly.
  • Performance. Over the last 5 years, SGOV returned 17.1% versus 8.7% for SCHO, with dividends reinvested. $10,000 would have grown to $11,707 in SGOV and $10,874 in SCHO.
  • Risk. SCHO has been the bumpier ride. Its worst peak-to-trough decline over the last 5 years was -5.4%, against -0.6% for SGOV.
  • Diversification. SCHO holds 97 positions and SGOV holds 24.
  • Dividend growth. SGOV grew its yearly payout 238.5% a year over the last 4 years, versus 74.8% for SCHO.
  • Size. SGOV is the larger fund with $116.3 billion in assets, against $15.7 billion for SCHO.

Bottom line: SCHO fits better if you care most about lower fees and broader diversification. SGOV fits better if you care most about stronger 5-year returns, smaller drawdowns and faster dividend growth.

Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
MetricSCHO
Schwab Short-Term U.S. Treasury ETF
SGOV
iShares 0-3 Month Treasury Bond ETF
Dividend yield (TTM)3.84%3.64%
Dividend / share (TTM)$0.92$3.67
Payout frequencyMonthlyMonthly
Last dividend$0.0791 on Oct 7, 2026$0.3005 on Oct 6, 2026
Ex-dividend dateOct 1, 2026Oct 1, 2026
Dividend growth (CAGR)74.8% over 4 yrs238.5% over 4 yrs
Price$23.89$100.61
Beta0.230.00
Max drawdown (5Y)-5.4%-0.6%
Market cap$12.86B$96.06B
ExchangeAMEXNYSE
Expense ratio0.03%0.09%
Assets under management$15.66B$116.27B
Number of holdings9724
Top 10 concentration0.1%—
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.

SCHO

$32.01/mo

$384 /yr at 3.84% yield

SGOV

$30.36/mo

$364 /yr at 3.64% yield

Dividend history
Total dividends paid per share in each calendar year. SCHO pays monthly; SGOV pays monthly.
YearSCHOSGOV
2025$0.9887$4.1157
2024$1.0313$5.1151
2023$0.9113$4.8826
2022$0.3224$1.4546
2021$0.1059$0.0313
Strategy: Cash equivalent
Funds holding short-dated US government paper, where the objective is that the principal is there when you need it. Yield follows short-term interest rates with a short lag rather than being locked in, so income falls when the central bank cuts and rises when it hikes. Because the underlying holdings are nearly identical across providers, the expense ratio comes almost directly out of what you receive.

There is no growth here by design, and purchasing power erodes whenever the after-tax yield sits below inflation.

What SCHO vs SGOV actually do

SGOV
An iShares fund holding US Treasury bills maturing within three months, used as a parking place for cash.

It tracks an ICE index of 0 to 3 month Treasury securities, so the entire portfolio rolls over every quarter and its yield tracks short-term rates with a short lag rather than being locked in. Interest accrues into the share price through the month and is paid out monthly, which is why the price ratchets up and then drops back by the distribution amount instead of trending. Because the holdings are direct Treasury obligations, the income is generally exempt from state and local tax.

Suits an emergency fund, a savings goal with a near-term date, or the cash sleeve of a portfolio waiting to be deployed. It is not an investment in any growth sense, and it will lose purchasing power to inflation whenever short rates sit below it.

Capital preservation

Performance
Total returns with dividends reinvested, from the adjusted closing price series. $10,000 invested on Oct 20, 2021 would now be worth $10,874 in SCHO and $11,707 in SGOV.
PeriodSCHOSGOV
1 month0.34%0.02%
3 months0.08%0.03%
Year to date0.84%0.23%
1 year1.49%0.69%
3 years11.38%10.76%
5 years8.74%17.07%
  • SCHO
  • SGOV
93106119202120222023202420252026109117

Both series indexed to 100 on 2021-10-20 using the adjusted closing price series. Past performance does not guarantee future results.

Sector allocation
Weight of each sector within the fund. Sectors are aligned on the same row so the two funds can be read against each other directly.
  • SCHO
  • SGOV
0%25%50%75%100%Cash & Others99.9%100.0%U.S. Treasury Debt99.5%Communication Services1.1%Technology1.1%Investment Company0.5%Financial Services0.1%
Top 10 holdings
Largest positions by portfolio weight.

SCHO97 holdings total

NameWeight
GVMXXSSC GOVERNMENT MM GVMXX0.08%

Quick verdict

SCHO fits better if you care most about lower fees and broader diversification. SGOV fits better if you care most about stronger 5-year returns, smaller drawdowns and faster dividend growth. Model the holding inside your real portfolio before deciding.

Still deciding? Compare them in your portfolio
Forecast dividend income, track payouts, and see how SCHO vs SGOV fits with the rest of your holdings. Free to start — no credit card required for the trial.
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Frequently asked questions

Is SCHO or SGOV better for dividend income?
It depends on your goals. SCHO currently yields 3.84% Trailing Twelve Months (TTM) while SGOV yields 3.64%. Higher yield means more current income per dollar invested, but may come with different risk, growth, or NAV characteristics. Compare total return and payout sustainability — not just the headline yield.
What is the difference between SCHO and SGOV?
Schwab Short-Term U.S. Treasury ETF (SCHO) is an ETF listed on AMEX. iShares 0-3 Month Treasury Bond ETF (SGOV) is an ETF listed on NYSE. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which is cheaper, SCHO or SGOV?
SCHO has the lower expense ratio. SCHO charges 0.03% a year and SGOV charges 0.09%, a difference of $6 a year on a $10,000 investment.
Which has performed better, SCHO or SGOV?
Over the last 5 years, SGOV has the higher total return with dividends reinvested: SCHO returned 8.7% and SGOV returned 17.1%. Past performance does not predict future returns.
Which is riskier, SCHO or SGOV?
Measured by the worst peak-to-trough decline over the last five years, SCHO has been riskier: SCHO fell as much as 5.4% and SGOV as much as 0.6%. Their betas are 0.23 and 0.00.
How often do SCHO and SGOV pay dividends?
Both pay monthly. The most recent payments were $0.0791 for SCHO and $0.3005 for SGOV.
How much income does $10,000 in SCHO vs SGOV generate?
At current TTM yields, $10,000 in SCHO would generate roughly $32.01 per month ($384 annually). The same amount in SGOV would produce about $30.36 per month ($364 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both SCHO and SGOV?
Yes. Many income investors hold both to diversify strategy or index exposure. Whether the combination actually diversifies depends on overlapping holdings and factor exposure. Model both inside Dividend Wealth to see combined income, sector mix, and forecast impact.
Where can I compare SCHO vs SGOV with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how SCHO and SGOV fit alongside the rest of your portfolio. A 14-day free trial of Standard is available with no credit card required; a limited Free plan is also available.

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For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.