Dividend comparison

SGOV vs SCHD: Which Is Better for Income?

Side-by-side yield, projected income, and dividend fundamentals for iShares 0-3 Month Treasury Bond ETF and Schwab U.S. Dividend Equity ETF. Updated July 26, 2026.

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Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
MetricSGOV
iShares 0-3 Month Treasury Bond ETF
SCHD
Schwab U.S. Dividend Equity ETF
Dividend yield (TTM)——
Dividend / share (TTM)——
Price$100.64$33.29
Payout ratio (TTM)——
Dividend growth streak—13 years
Beta0.000.58
Market cap$95.94B$96.24B
ExchangeAMEXAMEX
Expense ratio0.09%0.06%
Assets under management$99.61B$102.62B
Number of holdings24103
Top 10 concentration—41.5%
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.

SGOV

—/mo

Yield data unavailable

SCHD

—/mo

Yield data unavailable

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 SGOV vs SCHD 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

SCHD
An index ETF holding about 100 US dividend payers screened for balance-sheet strength and a long payment record.

It tracks the Dow Jones U.S. Dividend 100 Index, which first requires at least ten consecutive years of dividends, then ranks the survivors on a composite of cash flow to total debt, return on equity, dividend yield and five-year dividend growth. The top 100 are held at market-cap weights with a 4% cap per stock and 25% per sector, reconstituted annually and rebalanced quarterly. Those quality screens push the portfolio toward mature value sectors and largely out of high-growth technology, which is the single biggest reason its return diverges from the S&P 500 in either direction.

Suits an investor who wants a growing dividend stream plus share-price participation and can sit out technology-led rallies without changing course. Not a match for someone who needs the highest available current yield or wants full market exposure.

Core dividend holding

Performance
Trailing returns from the adjusted closing price series.
PeriodSGOVSCHD
1 month0.02%4.95%
3 months0.00%7.53%
Year to date0.26%23.34%
1 year1.74%26.48%
3 years12.26%47.89%
5 years17.09%57.55%
  • SGOV
  • SCHD
87125163202120222023202420252026117158

Both series indexed to 100 on 2021-07-24 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.
  • SGOV
  • SCHD
0%25%50%75%100%Cash & Others100.0%0.0%Healthcare20.8%Consumer Defensive20.6%Energy14.1%Technology12.7%Financial Services9.9%Industrials7.8%Consumer Cyclical7.7%Communication Services6.2%Utilities0.1%
Top 10 holdings
Largest positions by portfolio weight. One of these funds runs a derivative strategy and reports no conventional constituents.

SCHD103 holdings total

NameWeight
ABTABBOTT LABORATORIES4.54%
MRKMERCK & CO INC4.47%
UNHUNITEDHEALTH GROUP INC4.41%
AMGNAMGEN INC4.31%
PGPROCTER & GAMBLE4.11%
HDHOME DEPOT INC4.07%
KOCOCA-COLA4.05%
CVXCHEVRON CORP4.02%
COPCONOCOPHILLIPS3.79%
PEPPEPSICO INC3.72%

Quick verdict

Compare the metrics above, then add both tickers to a Dividend Wealth portfolio to see combined income forecasts and diversification impact.

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Forecast dividend income, track payouts, and see how SGOV vs SCHD 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 SGOV or SCHD better for dividend income?
Compare yield, payout sustainability, and how each fund or stock fits your income goals. Use Dividend Wealth to model both holdings inside a real portfolio forecast.
What is the difference between SGOV and SCHD?
iShares 0-3 Month Treasury Bond ETF (SGOV) is an ETF listed on AMEX. Schwab U.S. Dividend Equity ETF (SCHD) is an ETF listed on AMEX. Side-by-side metrics on this page cover yield, price, payout ratio, dividend growth streak, beta, and market cap when available.
Can I hold both SGOV and SCHD?
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 SGOV vs SCHD with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how SGOV and SCHD 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.