How do expense ratios compare between SCHO and SGOV?

SCHO has an expense ratio of 0.03%, while SGOV's is 0.09%. This means SCHO is 0.06 percentage points cheaper. Over time, this fee difference compounds, potentially affecting net returns. For example, on a $10,000 investment, the annual cost difference is $6. Lower fees generally mean more of your money stays invested, which can impact long-term growth, especially in low-yield environments. Always consider total costs when comparing similar funds.

How do SCHO and SGOV differ in terms of maturity exposure?

SCHO invests in short-term U.S. Treasury bonds with maturities typically up to two years, offering slightly higher yield potential and interest rate sensitivity. SGOV focuses on ultra-short-term Treasuries (0–3 months), prioritising capital preservation and liquidity. The longer duration of SCHO means it may fluctuate more with interest rate changes, while SGOV's ultra-short duration keeps price movements minimal, making it suitable for very near-term cash management.

How do ETF distributions work in the context of SCHO and SGOV?

ETFs like SCHO and SGOV distribute income earned from their underlying bonds. SCHO's higher dividend yield (3.83%) reflects income from slightly longer-term bonds, while SGOV's yield (3.69%) comes from ultra-short Treasuries. Distributions vary with interest rates and may not align directly with the stated yield, as yields are calculated using the last distribution and current price. They are typically paid monthly, though this can change.

How do the dividend yields of SCHO and SGOV compare?

SCHO offers a dividend yield of 3.83%, which is 0.14 percentage points higher than SGOV's 3.69%. This reflects the slight duration premium in SCHO's short-term Treasury holdings versus SGOV's ultra-short exposure. Higher yield may compensate for slightly more interest rate sensitivity, but differences are marginal. Yield alone doesn't guarantee better returns, as it depends on interest rate movements and reinvestment timing for these funds.

Do SCHO and SGOV have overlapping top holdings?

There are no shared top-10 holdings between SCHO and SGOV. SCHO's short-term Treasury bonds and SGOV's ultra-short Treasury bills are distinct in maturity, even though both are U.S. government-backed securities. This means they hold different individual securities. However, both funds track short-duration government debt, so their performance is influenced by similar macroeconomic factors, such as central bank interest rate decisions and inflation data.

Which fund is better for emergency fund parking?

For very short-term cash needs, SGOV's 0–3 month Treasury exposure may offer greater stability and liquidity. SCHO, with slightly longer durations, carries marginally more interest rate risk. However, if you can tolerate minor fluctuations for a potentially higher yield, SCHO's 3.83% versus SGOV's 3.69% could be advantageous over time. Both have strong liquidity, with SGOV's $110.9 billion net assets providing deep trading markets, while SCHO's $15.3 billion is also robust.

What are the typical investing goals associated with SCHO and SGOV?

SCHO is often associated with generating modest income while preserving capital in a short-term interest rate environment. SGOV is typically used for cash management, prioritising liquidity and capital preservation over yield. Both serve as alternatives to traditional cash savings accounts, but SCHO's slightly longer duration suits investors seeking a balance between yield and safety, while SGOV's ultra-short duration appeals to those needing immediate access and minimal price volatility.

How does fund inception date impact SCHO and SGOV's reliability?

SCHO launched in August 2010, giving it over 15 years of operational history, which provides more data on how it handles various market conditions. SGOV, launched in May 2020, has a shorter track record. However, as both are Treasury-only funds, the underlying securities are very similar, and SGOV's shorter history is less concerning than for more volatile asset classes.

How do the net assets of SCHO and SGOV affect trading?

SGOV has massive net assets of $110.9 billion, suggesting very tight bid-ask spreads and high liquidity. SCHO, with $15.3 billion, also has good liquidity for a short-term bond fund. Larger fund size generally means easier trading, but both are large enough that retail investors should not face significant issues. SGOV's size may offer marginally better execution during periods of market volatility.

What is the main practical difference between SCHO and SGOV?

SCHO's 0.03% expense ratio versus SGOV's 0.09% makes SCHO cheaper to hold over time. While both funds are low-cost, SCHO's fee advantage compounds. For instance, on a $10,000 holding, SCHO's annual cost is $3, compared to $9 for SGOV. This may influence choices for long-term holders, though differences are minimal in short-term horizons. Always weigh costs against yield and liquidity.

What are the educational disclaimers regarding SCHO and SGOV?

This content is educational, not investment advice. Always consult a financial professional for personal guidance. Past performance is not indicative of future results.

SCHO vs SGOV

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

Compare Schwab Short-Term U.S. Treasury ETF (SCHO) and iShares 0-3 Month Treasury Bond ETF (SGOV). This page examines fees, holdings, dividends, and how each fund tracks its market. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

SCHO

Metric

SGOV

0.03%

Expense Ratio

0.09%

3.83%

Dividend Yield

3.69%

$15.28B

Net Assets

$110.87B

Holdings

Aug 5, 2010

Inception Date

May 26, 2020

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Index Tracked

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Short Government

Fund Category

Ultrashort Bond

SCHO costs about $6.00 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

SCHO

Pros

SCHO offers a very low expense ratio of 0.03%, which helps minimise costs for investors.
The fund's net assets of $15.3 billion ensure good liquidity for most trading needs.
With an inception date in 2010, SCHO has a longer operational history than many competitors.

Considerations

The dividend yield of 3.83% is lower than some other short-term Treasury options.
The fund's top holdings and sector weights are not available for detailed analysis.
Being a Schwab fund, it lacks the direct brand recognition of larger issuers like iShares.

SGOV

Pros

SGOV benefits from massive net assets of $110.9 billion, offering exceptional liquidity.
The expense ratio of 0.09% remains competitive for an ultra-short bond ETF.
As a BlackRock iShares fund, SGOV is backed by a highly reputable issuer.

Considerations

The fund's inception date in 2020 means it has a shorter track record.
Like SCHO, SGOV does not disclose top holdings or sector weights for review.
The dividend yield of 3.69% is marginally lower than comparable short-term funds.

About SCHO and SGOV

SCHO (SCHO)

The Schwab Short-Term U.S. Treasury ETF (SCHO) provides exposure to U.S. government debt with maturities of between one and three years. Designed as a lower-risk bond holding, it aims to generate income while managing sensitivity to interest rate changes more effectively than long-term treasuries. With a low expense ratio of 0.03%, this fund is a cost-efficient option for investors seeking stability within their portfolios. While it holds a dividend yield of approximately 3.83%, returns are subject to market conditions and do not come with guaranteed outcomes. As with any investment, the value of the fund can fall as well as rise, and investors should consider their own risk tolerance and financial goals before allocating funds.

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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SCHO vs SGOV

Fund Snapshot