What does the expense ratio represent for these Treasury bond ETFs?

The expense ratio is the annual fee charged by the fund manager, deducted directly from the fund's assets. For GOVT, this fee is 0.05%, while for VGIT, it is 0.03%. Although these percentages appear small, they reduce the net return investors receive over time. Because both funds aim to track US Treasury bonds, which have similar underlying performance drivers, lower fees can provide a marginal advantage in total return. Investors should always check the specific expense ratios listed in the fund data to understand the cost structure of their chosen investment vehicle.

How do the inception dates of GOVT and VGIT affect their track records?

VGIT was established in November 2009, whereas GOVT was launched in February 2012. This means VGIT has a longer operational history and provides more historical data points for analysing performance through various market cycles. A longer track record can offer insight into how a fund manages tracking error during different interest rate environments. However, past performance does not guarantee future results. Investors reviewing these funds should consider the additional historical context provided by the older fund while noting that both are managed by large, reputable institutions with similar strategic objectives.

What information is missing regarding the index tracked by each fund?

For both GOVT and VGIT, the specific index tracked is listed as 'not available' in the provided dataset. Typically, ETFs track a defined benchmark to measure performance. Without this information, it is difficult to precisely determine which specific basket of US Treasury bonds each fund aims to replicate. Investors should consult the official fund documentation for detailed index composition. The absence of this data in the comparison view means users must rely on the category description, which for both funds is 'Intermediate Government', to understand their general strategic exposure.

How do the dividend yields of GOVT and VGIT compare?

VGIT reports a dividend yield of 3.99%, while GOVT reports a yield of 3.73%. The difference is 0.26 percentage points. Yield represents the annual income generated by the fund's holdings, expressed as a percentage of the share price. While VGIT currently offers a higher yield, this figure fluctuates based on interest rates and market prices. Higher yields often correlate with longer durations or higher-risk assets, but within intermediate Treasuries, differences usually reflect slight variations in portfolio composition. Investors should view yield as one factor among many, not the sole determinant of a bond fund's suitability.

Are the top holdings of GOVT and VGIT identical?

The data states 'Top holdings: not available' for both funds, so it is impossible to directly compare specific securities. However, the shared top-10 holdings list indicates 'none among the listed top holdings', implying no exact overlap is currently documented in the provided summary. Even if both invest in US Treasuries, variations in the specific maturities or individual bond issues selected by each manager can lead to differing performance characteristics. Investors should refer to the latest official portfolio disclosures from iShares and Vanguard to see the exact breakdown of their current asset allocations.

What do the net assets tell us about these funds?

GOVT holds net assets of $41.6 billion, while VGIT holds $39.7 billion. Both funds possess substantial assets under management, exceeding $39 billion each. High asset levels generally suggest good liquidity and popularity among investors, which can reduce trading spreads. The difference in total size is relatively minor, with GOVT being slightly larger. These figures indicate that both are major products within the intermediate government bond category, backed by large issuers. Liquidity is an important consideration for investors who may need to sell their positions during periods of market stress or portfolio rebalancing.

How do intermediate-term Treasury ETFs fit into the broader bond market?

Both GOVT and VGIT fall under the 'Intermediate Government' category. This means they focus on US Treasury bonds with maturities typically between 3 and 10 years. They are considered lower risk than corporate or high-yield bonds because they are backed by the US government. However, they are more sensitive to interest rate changes than short-term Treasuries and less sensitive than long-term Treasuries. These funds are often used as a core holding for capital preservation and income generation, offering a balance between yield and interest rate risk within the fixed-income asset class.

How do ETF dividends work for bond funds like GOVT and VGIT?

Bond ETFs collect interest payments from their underlying Treasury holdings. This interest is then distributed to ETF shareholders, usually on a monthly basis. The 'dividend yield' figures (3.73% for GOVT and 3.99% for VGIT) estimate the annual income an investor might receive relative to the fund's price. It is important to note that distributions are not guaranteed and can vary based on the income generated by the bonds in the portfolio. Investors receive this income as cash or can reinvest it, depending on their account settings and preferences.

Where can I find detailed sector weights for these funds?

The provided dataset lists 'Sector weights: not available' for both GOVT and VGIT. Since these are US Treasury funds, they do not have traditional equity sectors like Technology or Healthcare. Instead, their 'weights' refer to the breakdown of maturities (e.g., 2-3 years, 7-10 years). To view this specific detail, you must access the official holdings report from the fund issuer's website. The comparison tool only provides high-level summaries, and for granular data regarding the duration profile and maturity buckets of the underlying bonds, direct issuer documentation is required.

Why might two similar ETFs have different yields?

Even though GOVT and VGIT have similar expense ratios and track the same general category, their yields differ (3.73% vs 3.99%). This difference arises from the specific mix of bonds held in each portfolio. One fund might hold slightly longer-dated bonds or different individual Treasury notes that currently pay higher coupons. Additionally, the timing of portfolio rebalancing and the specific entry price of bonds held by each manager can influence the income return. It highlights that identical fund categories do not guarantee identical performance metrics, so investors must look beyond the category label to the fund's specific characteristics.

What is the significance of the issuer for these ETFs?

GOVT is managed by iShares (BlackRock), and VGIT is managed by Vanguard. Both are among the largest and most established asset managers globally. The reputation and scale of these issuers are important factors for investors because they influence the operational stability, liquidity, and potential for fund closures or mergers. While the management styles may differ, the massive size of both providers ($41.6 billion for GOVT and $39.7 billion for VGIT in net assets) suggests that both funds are well-resourced and likely to remain available for long-term investing strategies. This provides a layer of confidence regarding the administration of the funds.

How should beginners interpret the 'Tracking' field?

In the provided data, the 'Index tracked' field is 'not available' for both funds. In a typical ETF comparison, this field would name the specific benchmark, such as the 'Bloomberg US Treasury Index'. When this information is missing, beginners should be cautious about assuming perfect replication of a specific market segment. Instead, they should focus on the fund's stated objective: to provide exposure to intermediate-term US Treasury bonds. Without the exact index name, investors cannot calculate tracking difference or tracking error, which are advanced metrics used to measure how closely the ETF follows its intended benchmark.

GOVT vs VGIT

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

Compare GOVT and VGIT to review fees, holdings, dividends and tracking. GOVT (iShares) has a 0.05% expense ratio, while VGIT (Vanguard) offers 0.03%. Assess yields and net assets to understand their intermediate government bond focus. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

GOVT

Metric

VGIT

0.05%

Expense Ratio

0.03%

3.73%

Dividend Yield

3.99%

$41.62B

Net Assets

$39.66B

220

Holdings

104

Feb 14, 2012

Inception Date

Nov 19, 2009

–

Index Tracked

–

Intermediate Government

Fund Category

Intermediate Government

VGIT costs about $2.00 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

GOVT

Pros

Expense ratio is 0.05%.
Net assets are $41.6 billion.
Dividend yield is 3.73%.

Considerations

Index tracked is not available.
Top holdings are not available.
Sector weights are not available.

VGIT

Pros

Expense ratio is 0.03%.
Net assets are $39.7 billion.
Dividend yield is 3.99%.

Considerations

Index tracked is not available.
Top holdings are not available.
Sector weights are not available.

About GOVT and VGIT

GOVT (GOVT)

The iShares Core US Treasury Bond ETF is designed to provide investors with exposure to U.S. Treasury bonds, typically those with intermediate maturities. As a government-backed fixed-income fund, it is often viewed as a lower-risk component of a diversified portfolio compared to equities or corporate bonds. The fund tracks a broad basket of Treasury securities, currently holding 220 positions, with net assets of USD 41.62 billion. Its low expense ratio of 0.05% helps keep costs down for long-term holders. While it does not reinvest dividends within the fund (USD Dis class), it offers a dividend yield of 3.73%, appealing to income-focused investors. However, like all fixed-income instruments, its value can fluctuate due to interest rate changes and inflation risks. This ETF is best suited for those seeking stability and income, though it is important to remember that capital is not guaranteed and values can fall.

VGIT (VGIT)

The Vanguard Intermediate-Term Treasury ETF (VGIT) is designed to track the performance of a market-weighted index composed of US government bonds with maturities between three and ten years. As an exchange-traded fund, it offers investors exposure to a diversified portfolio of 104 holdings, primarily consisting of fixed-income securities backed by the full faith and credit of the US government. This structure typically aims to provide a balance between yield potential and interest rate risk compared to shorter or longer-term treasury options. With a low expense ratio of 0.03%, it is often used by investors seeking stability and income within a broader portfolio. It is important to remember that while US government bonds are considered low credit risk, their market value can fluctuate based on changes in interest rates. Consequently, returns are not guaranteed, and values may rise or fall over time.

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GOVT vs VGIT

Fund Snapshot

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Investment Analysis

GOVT

Pros

Considerations

VGIT

Pros

Considerations

About GOVT and VGIT

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Trusted & Regulated

6% Interest on Cash

Frequently asked questions

What does the expense ratio represent for these Treasury bond ETFs?

How do the inception dates of GOVT and VGIT affect their track records?

What information is missing regarding the index tracked by each fund?

How do the dividend yields of GOVT and VGIT compare?

Are the top holdings of GOVT and VGIT identical?

What do the net assets tell us about these funds?

How do intermediate-term Treasury ETFs fit into the broader bond market?

How do ETF dividends work for bond funds like GOVT and VGIT?

Where can I find detailed sector weights for these funds?

Why might two similar ETFs have different yields?

What is the significance of the issuer for these ETFs?

How should beginners interpret the 'Tracking' field?

Fund Snapshot

About GOVT and VGIT

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