Dividend comparison
SGOV vs SCHD: Which Is Better for Income?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for iShares 0-3 Month Treasury Bond ETF and Schwab U.S. Dividend Equity ETF, side by side. Updated October 24, 2026.
- Fees. SCHD is cheaper at 0.06% a year versus 0.09% for SGOV. On $10,000 that is $3 a year less in fees.
- Income. SGOV pays more income, yielding 3.64% over the last twelve months versus 2.99% for SCHD. That is about $65 more a year on $10,000. SGOV pays monthly, SCHD pays quarterly.
- Performance. Over the last 5 years, SCHD returned 61.5% versus 17.1% for SGOV, with dividends reinvested. $10,000 would have grown to $16,150 in SCHD and $11,707 in SGOV.
- Risk. SCHD has been the bumpier ride. Its worst peak-to-trough decline over the last 5 years was -16.8%, against -0.6% for SGOV.
- Diversification. SCHD holds 102 positions and SGOV holds 24.
- Dividend growth. SGOV grew its yearly payout 238.5% a year over the last 4 years, versus 8.7% for SCHD.
Bottom line: SGOV fits better if you care most about more income today, smaller drawdowns and faster dividend growth. SCHD fits better if you care most about lower fees, stronger 5-year returns and broader diversification.
| Metric | SGOV iShares 0-3 Month Treasury Bond ETF | SCHD Schwab U.S. Dividend Equity ETF |
|---|---|---|
| Dividend yield (TTM) | 3.64% | 2.99% |
| Dividend / share (TTM) | $3.67 | $1.05 |
| Payout frequency | Monthly | Quarterly |
| Last dividend | $0.3005 on Oct 6, 2026 | $0.2665 on Sep 28, 2026 |
| Ex-dividend date | Oct 1, 2026 | Sep 23, 2026 |
| Dividend growth (CAGR) | 238.5% over 4 yrs | 8.7% over 4 yrs |
| Price | $100.66 | $35.27 |
| Dividend growth streak | — | 13 years |
| Beta | 0.00 | 0.58 |
| Max drawdown (5Y) | -0.6% | -16.8% |
| Market cap | $96.06B | $98.31B |
| Exchange | NYSE | AMEX |
| Expense ratio | 0.09% | 0.06% |
| Assets under management | $116.67B | $118.92B |
| Number of holdings | 24 | 102 |
| Top 10 concentration | — | 41.8% |
SGOV
$30.35/mo
$364 /yr at 3.64% yield
SCHD
$24.91/mo
$299 /yr at 2.99% yield
| Year | SGOV | SCHD |
|---|---|---|
| 2025 | $4.1157 | $1.0476 |
| 2024 | $5.1151 | $0.9944 |
| 2023 | $4.8826 | $0.8862 |
| 2022 | $1.4546 | $0.8540 |
| 2021 | $0.0313 | $0.7499 |
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
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
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
| Period | SGOV | SCHD |
|---|---|---|
| 1 month | 0.01% | 5.77% |
| 3 months | 0.02% | 8.46% |
| Year to date | 0.24% | 32.24% |
| 1 year | 0.67% | 35.74% |
| 3 years | 10.77% | 69.62% |
| 5 years | 17.07% | 61.50% |
- SGOV
- SCHD
Both series indexed to 100 on 2021-10-22 using the adjusted closing price series. Past performance does not guarantee future results.
- SGOV
- SCHD
Quick verdict
SGOV fits better if you care most about more income today, smaller drawdowns and faster dividend growth. SCHD fits better if you care most about lower fees, stronger 5-year returns and broader diversification. Model the holding inside your real portfolio before deciding.
Frequently asked questions
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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.