What type of funds are BIL and SGOV?

Both BIL and SGOV are ultrashort bond exchange-traded funds. BIL focuses on Treasury bills with maturities between one and three months, while SGOV invests in US Treasury bonds with maturities of 0 to 3 months. These funds aim to provide low-risk, highly liquid investments closely mirroring the very short end of the government debt curve. Investors often use them as cash equivalents or to park capital temporarily while seeking modest income. Their primary appeal lies in preserving capital during volatile markets, offering stability compared to longer-duration bonds or equities.

How do the expense ratios compare?

SGOV has a lower expense ratio of 0.09% compared to BIL's 0.14%. This five-basis-point difference means SGOV is cheaper to hold on an annual basis. While the absolute cost difference is small, over extended periods, lower fees can result in slightly better net returns, assuming all other factors remain equal. Beginners should note that expense ratios are deducted from fund assets daily, affecting overall performance. It is a key factor in choosing between similar funds, as costs directly impact long-term wealth accumulation potential.

Do these funds hold individual stocks?

No, neither BIL nor SGOV holds individual stocks. They are bond funds that invest primarily in US Treasury bills or short-term Treasury bonds. Their portfolios consist of government debt securities with very short maturities, designed to minimise interest rate risk and credit risk. Understanding this distinction is crucial for beginners, as these funds are not equity investments and will not provide returns through stock price appreciation. Instead, their value comes from holding high-quality, short-duration debt instruments, offering stability and income rather than growth potential typically seen in the stock market.

Which fund has a longer track record?

BIL has a significantly longer track record, having launched on 25 May 2007, whereas SGOV was introduced on 26 May 2020. BIL has been operating for over 19 years, providing ample historical data and demonstrating resilience across various market cycles. SGOV, with approximately six years of history, offers less long-term performance data. Investors seeking established operational history may prefer BIL, while those prioritising lower costs might lean towards SGOV, acknowledging its newer structure and shorter operational timeline when evaluating reliability and past performance metrics.

How do the dividend yields compare?

BIL offers a dividend yield of 3.71%, slightly higher than SGOV's 3.69%. While the difference is minimal, BIL provides marginally more income per dollar invested currently. Both yields are subject to change based on prevailing short-term interest rates and market conditions. These ETFs distribute income typically monthly, derived from the interest payments on the underlying Treasury securities. Beginners should understand that higher yields often correlate with slightly different maturities or market dynamics, but in this case, both funds offer very similar income profiles suitable for conservative income-focused strategies.

What is the difference in net assets?

SGOV manages substantially more assets, with net assets of $110.9 billion, compared to BIL's $48.1 billion. Larger asset bases often contribute to better liquidity and tighter bid-ask spreads, potentially reducing transaction costs for investors. However, BIL's size is still considerable, ensuring robust trading activity. When comparing, note that SGOV's modern structure and lower fees have attracted significant capital since its 2020 inception. Both funds are large enough to be considered highly liquid, but SGOV's scale may offer slight advantages in execution efficiency for large institutional or retail trades.

How similar are the top holdings?

Specific top-10 holdings for both BIL and SGOV are currently not available. Consequently, it is impossible to determine the exact overlap in their portfolios at the individual security level. However, given that both are ultrashort Treasury bond ETFs, they likely hold very similar types of government debt with short maturities. The lack of public holding data means investors must rely on general strategy descriptions rather than detailed portfolio comparisons. This transparency limitation is common for some ETFs, requiring trust in the index tracking methodology rather than direct holding analysis.

How do they differ in market exposure?

BIL tracks one-to-three-month Treasury bills, while SGOV focuses on zero-to-three-month Treasury bonds. This subtle difference in maturity ranges affects their sensitivity to immediate interest rate changes. SGOV, with potentially shorter maturities, might exhibit slightly less price volatility compared to BIL. Both expose investors to the US government credit and the short-term money market. The distinction is minor for most retail investors but technically impacts duration. Neither provides exposure to corporate debt or international markets, keeping their risk profile strictly within domestic government short-term debt.

What happens when interest rates rise?

Rising interest rates typically lead to higher yields for these funds over time, as they reinvest maturing bonds at new, higher rates. However, initial price drops may occur as older, lower-yielding bonds become less attractive. Due to their ultra-short maturities, the recovery period for price depreciation is very quick, often just a few weeks or months. Both BIL and SGOV are designed to minimise this impact. Investors should expect their dividend yields to adjust upwards relatively rapidly compared to longer-duration bond funds, making them effective tools for capturing rising rate environments with low capital risk.

Are there sector weights available?

Sector weights are not publicly available for either BIL or SGOV. This is standard for government bond ETFs, as their primary exposure is to sovereign debt rather than traditional equity sectors like technology or healthcare. Instead of sector weights, analysts look at maturity profiles and credit quality. The absence of sector data does not imply a lack of transparency in strategy; rather, it reflects the nature of fixed-income investing. Beginners should focus on the underlying security types—US Treasuries—and their short duration, which defines the risk and return characteristics more than sector allocations do.

Which fund might suit a long-term hold?

For long-term holding, cost efficiency becomes increasingly important. SGOV's lower expense ratio of 0.09% could lead to better net outcomes over many years compared to BIL's 0.14%. While BIL has a longer track record, SGOV's modern structure and significant asset base provide liquidity. Investors planning to hold these cash-equivalent assets for extended periods might prioritise the lower fee structure to maximise compounding, assuming the yield difference remains negligible. However, if operational history is a paramount concern, BIL remains a strong, established alternative with a proven ability to navigate past economic cycles.

Where can I find updated fund data?

Updated data, including yields and net assets, should be obtained from official issuer websites such as State Street Global Advisors for BIL and BlackRock for SGOV. Financial news platforms and brokerage tools also provide real-time prices and recent yield distributions. Be aware that data shown in comparison articles, like this one, is a snapshot from a specific date and may change. Always verify current expense ratios and recent performance metrics directly from the source before making any decisions. This ensures you are working with the most accurate and recent information available regarding these ultrashort bond ETFs.

BIL vs SGOV

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

This page compares BIL (SPDR Bloomberg 1-3 Month T-Bill ETF) and SGOV (iShares 0-3 Month Treasury Bond ETF). It outlines differences in expense ratios (0.14% vs 0.09%), net assets, dividend yields, and how each fund tracks its market. Top-10 holdings and sector weights are not available for either fund. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

BIL

Metric

SGOV

0.14%

Expense Ratio

0.09%

3.71%

Dividend Yield

3.69%

$48.14B

Net Assets

$110.87B

Holdings

May 25, 2007

Inception Date

May 26, 2020

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Index Tracked

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Ultrashort Bond

Fund Category

Ultrashort Bond

SGOV costs about $5.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

BIL

Pros

Established fund with assets of $48.1 billion providing substantial liquidity and market depth
Long operating history since 2007 demonstrates track record and operational resilience
Competitive dividend yield of 3.71% offers attractive income relative to similar ultrashort bond ETFs

Considerations

Higher expense ratio of 0.14% reduces net returns compared to lower-cost ultrashort bond ETF alternatives
Smaller asset base than the major competing fund may slightly limit liquidity or bid-ask spreads
Specific index tracked and top holdings details are not publicly available for detailed analysis

SGOV

Pros

Low expense ratio of 0.09% enhances net returns for long-term ultrashort bond investors
Extremely large fund with $110.9 billion in net assets ensures excellent liquidity and tight spreads
Modern ETF structure launched in 2020 incorporates the latest technological and regulatory enhancements

Considerations

Shorter operating history since 2020 limits long-term performance track record availability for investors
Dividend yield of 3.69% is marginally lower than comparable ultrashort bond fund options
Top holdings and specific index tracked details are not available in the provided fund data

About BIL and SGOV

BIL (BIL)

The SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) is an ultra-short bond exchange-traded fund designed to track the performance of U.S. Treasury bills with maturities between one and three months. Managed by State Street Global Advisors, this fund offers investors a way to hold high-quality, short-term government debt. With an expense ratio of 0.14% and net assets exceeding USD 48 billion, it provides significant liquidity for those looking to park cash or reduce portfolio risk. BIL typically distributes interest payments derived from its underlying holdings, currently yielding around 3.71%. While generally considered low-risk compared to longer-duration bonds, it is not guaranteed and its value can fluctuate. Investors should be aware that returns may vary based on interest rate movements and economic conditions, making it suitable for those seeking potential income with lower volatility.

SGOV (SGOV)

The iShares 0-3 Month Treasury Bond ETF (SGOV) is an exchange-traded fund designed to provide exposure to U.S. Treasury bills with very short maturities, typically less than three months. This asset class is often viewed as a low-risk option for investors seeking liquidity and capital preservation rather than significant growth. With an expense ratio of just 0.09%, it offers a cost-effective way to hold cash-equivalent securities. The fund currently has substantial net assets of USD 110.87 billion and a dividend yield of 3.69%. As of its inception on 26 May 2020, it has attracted investors looking for a safe haven during periods of market volatility. While it generally carries lower risk than long-term bonds or equities, it is important to remember that capital values can fluctuate. It serves primarily as a defensive tool within a diversified portfolio, allowing investors to earn interest on idle cash with minimal duration risk.

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BIL vs SGOV

Fund Snapshot