Dividend comparison

SGOV vs SHY: Which Is Better for Income?

Fees, yield, total returns, drawdowns, holdings overlap and dividend history for iShares 0-3 Month Treasury Bond ETF and iShares 1-3 Year Treasury Bond ETF, side by side. Updated October 21, 2026.

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SGOV vs SHY: key differences
The short answer, from the latest data on this page.
  • Fees. SGOV is cheaper at 0.09% a year versus 0.15% for SHY. On $10,000 that is $6 a year less in fees.
  • Income. Their trailing yields are almost the same: 3.64% for SGOV and 3.62% for SHY. Both pay monthly.
  • Performance. Over the last 5 years, SGOV returned 17.1% versus 6.4% for SHY, with dividends reinvested. $10,000 would have grown to $11,707 in SGOV and $10,644 in SHY.
  • Risk. SHY 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. SHY holds 90 positions and SGOV holds 24.
  • Dividend growth. SGOV grew its yearly payout 238.5% a year over the last 4 years, versus 93.9% for SHY.
  • Size. SGOV is the larger fund with $116.3 billion in assets, against $27.2 billion for SHY.

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

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
SHY
iShares 1-3 Year Treasury Bond ETF
Dividend yield (TTM)3.64%3.62%
Dividend / share (TTM)$3.67$2.95
Payout frequencyMonthlyMonthly
Last dividend$0.3005 on Oct 6, 2026$0.2410 on Oct 6, 2026
Ex-dividend dateOct 1, 2026Oct 1, 2026
Dividend growth (CAGR)238.5% over 4 yrs93.9% over 4 yrs
Price$100.61$81.30
Beta0.000.22
Max drawdown (5Y)-0.6%-5.4%
Market cap$96.06B$27.14B
ExchangeNYSENASDAQ
Expense ratio0.09%0.15%
Assets under management$116.27B$27.17B
Number of holdings2490
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.

SGOV

$30.36/mo

$364 /yr at 3.64% yield

SHY

$30.20/mo

$362 /yr at 3.62% yield

Dividend history
Total dividends paid per share in each calendar year. SGOV pays monthly; SHY pays monthly.
YearSGOVSHY
2025$4.1157$3.1524
2024$5.1151$3.2098
2023$4.8826$2.4525
2022$1.4546$1.0541
2021$0.0313$0.2232
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 SHY 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 $11,707 in SGOV and $10,644 in SHY.
PeriodSGOVSHY
1 month0.02%0.07%
3 months0.03%-0.84%
Year to date0.23%-1.84%
1 year0.69%-1.56%
3 years10.76%9.14%
5 years17.07%6.44%
  • SGOV
  • SHY
93106119202120222023202420252026117106

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.
  • SGOV
  • SHY
0%25%50%75%100%Cash & Others100.0%100.0%Treasuries99.7%U.S. Treasury Debt99.5%Investment Company0.5%Cash and/or Derivativ…0.3%

Quick verdict

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

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Frequently asked questions

Is SGOV or SHY better for dividend income?
It depends on your goals. SGOV currently yields 3.64% Trailing Twelve Months (TTM) while SHY yields 3.62%. 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 SGOV and SHY?
iShares 0-3 Month Treasury Bond ETF (SGOV) is an ETF listed on NYSE. iShares 1-3 Year Treasury Bond ETF (SHY) is an ETF listed on NASDAQ. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which is cheaper, SGOV or SHY?
SGOV has the lower expense ratio. SGOV charges 0.09% a year and SHY charges 0.15%, a difference of $6 a year on a $10,000 investment.
Which has performed better, SGOV or SHY?
Over the last 5 years, SGOV has the higher total return with dividends reinvested: SGOV returned 17.1% and SHY returned 6.4%. Past performance does not predict future returns.
Which is riskier, SGOV or SHY?
Measured by the worst peak-to-trough decline over the last five years, SHY has been riskier: SGOV fell as much as 0.6% and SHY as much as 5.4%. Their betas are 0.00 and 0.22.
How often do SGOV and SHY pay dividends?
Both pay monthly. The most recent payments were $0.3005 for SGOV and $0.2410 for SHY.
How much income does $10,000 in SGOV vs SHY generate?
At current TTM yields, $10,000 in SGOV would generate roughly $30.36 per month ($364 annually). The same amount in SHY would produce about $30.20 per month ($362 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both SGOV and SHY?
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 SHY with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how SGOV and SHY 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.