Dividend comparison

SGOV vs VMFXX: Which Is Better for Income?

Fees, yield, total returns, drawdowns, holdings overlap and dividend history for iShares 0-3 Month Treasury Bond ETF and Vanguard Federal Money Market Fund, side by side. Updated October 21, 2026.

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SGOV vs VMFXX: key differences
The short answer, from the latest data on this page.
  • Income. Their trailing yields are almost the same: 3.64% for SGOV and 3.68% for VMFXX. Both pay monthly.
  • Risk. Their worst declines over the last 5 years were similar: -0.6% for SGOV and 0.0% for VMFXX from peak to trough.
  • Diversification. SGOV holds 24 positions and VMFXX holds 21.
  • Dividend growth. VMFXX grew its yearly payout 345.2% a year over the last 4 years, versus 238.5% for SGOV.

Bottom line: VMFXX has the edge on these figures, with faster dividend growth. SGOV does not lead on any of the measures compared here.

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
VMFXX
Vanguard Federal Money Market Fund
Dividend yield (TTM)3.64%3.68%
Dividend / share (TTM)$3.67$0.04
Payout frequencyMonthlyMonthly
Last dividend$0.3005 on Oct 6, 2026$0.0030 on Oct 1, 2026
Ex-dividend dateOct 1, 2026Sep 30, 2026
Dividend growth (CAGR)238.5% over 4 yrs345.2% over 4 yrs
Price$100.61$1.00
Beta0.000.00
Max drawdown (5Y)-0.6%0.0%
Market cap$96.06B—
ExchangeNYSENASDAQ
Expense ratio0.09%—
Assets under management$116.27B—
Number of holdings2421
Top 10 concentration—6.2%
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

VMFXX

$30.63/mo

$368 /yr at 3.68% yield

Dividend history
Total dividends paid per share in each calendar year. SGOV pays monthly; VMFXX pays monthly.
YearSGOVVMFXX
2025$4.1157$0.0420
2024$5.1151$0.0518
2023$4.8826$0.0486
2022$1.4546$0.0120
2021$0.0313$0.0001
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 VMFXX 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 Jun 22, 2026 would now be worth $10,001 in SGOV and $10,000 in VMFXX.
PeriodSGOVVMFXX
1 month0.02%0.00%
3 months0.03%0.00%
Year to date0.23%—
1 year0.69%—
3 years10.76%—
5 years17.07%—
  • SGOV
  • VMFXX
1001001002026100100

Both series indexed to 100 on 2026-06-22 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
  • VMFXX
0%25%50%75%100%Cash & Others100.0%U.S. Treasury Debt99.5%Investment Company0.5%
Top 10 holdings
Largest positions by portfolio weight.

VMFXX21 holdings total

NameWeight
CITI.TOCitigroup Global Markets. 10/01/20261.83%
BNP.SWBNP Paribas SA 07/29/20261.22%
DBDeutsche Bank Securities. 10/01/20260.65%
BBVABanco Bilbao Vizcaya Argentaria SA. 08/03/20260.53%
BNPQYBNP Paribas SA 10/19/20260.43%
SAN.WABanco Santander SA. 10/01/20260.39%
2888.HKStandard Chartered Bank 10/01/20260.35%
KN.PANatixis SA (Paris Branch). 10/01/20260.32%
CM.TOCanadian Imperial Bank of Commerce. 10/21/20260.24%
GSBDGoldman Sachs & Co. 10/01/20260.23%

Quick verdict

VMFXX has the edge on these figures, with faster dividend growth. SGOV does not lead on any of the measures compared here. Model the holding inside your real portfolio before deciding.

Still deciding? Compare them in your portfolio
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Frequently asked questions

Is SGOV or VMFXX better for dividend income?
It depends on your goals. SGOV currently yields 3.64% Trailing Twelve Months (TTM) while VMFXX yields 3.68%. 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 VMFXX?
iShares 0-3 Month Treasury Bond ETF (SGOV) is an ETF listed on NYSE. Vanguard Federal Money Market Fund (VMFXX) 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 riskier, SGOV or VMFXX?
Measured by the worst peak-to-trough decline over the last five years, SGOV has been riskier: SGOV fell as much as 0.6% and VMFXX as much as 0.0%. Their betas are 0.00 and 0.00.
How often do SGOV and VMFXX pay dividends?
Both pay monthly. The most recent payments were $0.3005 for SGOV and $0.0030 for VMFXX.
How much income does $10,000 in SGOV vs VMFXX generate?
At current TTM yields, $10,000 in SGOV would generate roughly $30.36 per month ($364 annually). The same amount in VMFXX would produce about $30.63 per month ($368 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both SGOV and VMFXX?
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 VMFXX with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how SGOV and VMFXX 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.