What do SGOV and TLT track?

SGOV tracks 0 to 3 month US Treasury bills, reflecting short-term government debt. TLT tracks 20+ year US Treasury bonds, representing long-term government debt. Their index specifics are not available, but their fund names and categories clarify their duration focus.

How do duration differences affect ETF risk?

Duration measures sensitivity to interest rate changes. TLT's 20+ year duration makes it highly volatile when rates rise, as long-term bond prices fall sharply. SGOV's 0-3 month duration offers greater price stability, with minimal impact from rate fluctuations, prioritising capital preservation over potential capital appreciation.

Do the funds hold identical securities?

No. The data shows no overlap among the top ten holdings for SGOV or TLT. SGOV focuses on very short-term Treasury bills, while TLT holds long-dated Treasury bonds. This difference reflects their distinct duration strategies and the specific maturities they target within the US government debt spectrum.

How do the expense ratios compare?

SGOV charges a 0.09% expense ratio, while TLT charges 0.15%. This 0.06 percentage point difference means SGOV is marginally cheaper. Over time, lower fees can improve net returns, as less income is deducted from the fund's assets. For example, on a £100,000 holding, TLT costs £150 annually versus £90 for SGOV.

What is the dividend yield difference?

TLT currently offers a higher dividend yield of 4.76%, compared to 3.69% for SGOV. This reflects the market's compensation for holding longer-term debt. However, TLT's higher yield comes with greater price volatility. Investors should consider that higher yields in long-duration funds may be offset by potential capital declines if interest rates rise.

How do ETF distributions work?

Both SGOV and TLT distribute income from their underlying Treasury holdings. TLT pays monthly, providing regular cash flow. SGOV also distributes dividends, typically aligning with its monthly interest accruals. These distributions are not guaranteed and can vary based on the interest income generated by the Treasury bills or bonds held within each fund.

How do asset sizes compare?

SGOV has $110.9 billion in net assets, making it larger than TLT's $46.7 billion. Larger asset bases generally indicate broader adoption and can contribute to tighter bid-ask spreads and higher liquidity for trading. Both funds are established within their respective categories, with SGOV being relatively newer compared to TLT's long history.

When were SGOV and TLT launched?

TLT was launched in July 2002, giving it over two decades of history. SGOV launched in May 2020, making it a much newer fund. TLT's longer track record includes periods of both falling and rising rates, while SGOV has experienced a shorter, more recent market cycle focused on the post-pandemic rate environment.

Which goal suits SGOV?

SGOV is generally associated with capital preservation and generating modest cash income. Its short duration minimises interest rate risk, making it suitable for parking cash temporarily or serving as a low-volatility component in a portfolio. It benefits from higher short-term rates but offers little potential for capital appreciation from falling rates.

Which goal suits TLT?

TLT is typically associated with a hedge against deflation or economic uncertainty, or for investors seeking exposure to long-term interest rates. It offers the potential for significant capital gains if long-term rates fall. However, this comes with high sensitivity to rate increases, making it more volatile than short-term Treasury funds and requiring tolerance for larger price swings.

SGOV vs TLT

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

Compare SGOV and TLT, the iShares 0-3 Month Treasury Bond ETF and iShares 20+ Year Treasury Bond ETF. Review their 0.09% and 0.15% expense ratios, 3.69% and 4.76% dividend yields, and shared top-10 holdings status to understand how each tracks the market. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

SGOV

Metric

TLT

0.09%

Expense Ratio

0.15%

3.69%

Dividend Yield

4.76%

$110.87B

Net Assets

$46.71B

Holdings

May 26, 2020

Inception Date

Jul 22, 2002

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Index Tracked

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Ultrashort Bond

Fund Category

Long Government

SGOV 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

SGOV

Pros

SGOV is a large and established ultrashort bond ETF with $110.9 billion of net assets and a low 0.09% expense ratio.
It maintains a very short duration, which typically helps preserve capital stability compared with longer-dated Treasury funds.
The fund currently offers a 3.69% dividend yield, providing relatively high cash income within the ultrashort Treasury category.

Considerations

Because it tracks 0 to 3 month Treasuries, its yield can fall quickly if short-term policy rates decline.
The ETF does not benefit from capital appreciation that can occur when longer-term bond yields fall sharply.
SGOV provides limited diversification beyond US Treasury bills and other very short-term government debt instruments.

TLT

Pros

TLT is a long-standing fund with $46.7 billion of net assets and a 0.15% expense ratio for access to long-dated US Treasuries.
It currently pays a higher 4.76% dividend yield than SGOV, reflecting compensation for exposure to much longer-term debt maturities.
Long-duration Treasuries can offer meaningful capital gains if interest rates fall materially over time.

Considerations

TLT’s 20+ year duration makes it highly sensitive to interest rate increases, which can produce large share price declines.
The fund has experienced significant volatility since its inception, with drawdowns far larger than ultrashort Treasury ETFs.
TLT offers income and rate exposure but still lacks diversification across credit types beyond US long-term government debt.

About SGOV and TLT

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.

TLT (TLT)

The iShares 20+ Year Treasury Bond ETF (TLT) offers investors exposure to U.S. government bonds with maturities of 20 years or longer. As a long-term government bond fund, it is often influenced significantly by interest rate changes and economic outlooks. When interest rates fall, bond prices generally rise, and vice versa. With a modest expense ratio of 0.15% and net assets of USD 46.71 billion, it is a widely traded vehicle for those looking to diversify beyond equities. The fund holds 49 underlying assets and has an inception date of July 2002. It currently provides a dividend yield of approximately 4.76%. Investors should note that the value of this fund can fluctuate due to changes in long-term interest rates and inflation expectations, meaning returns are not guaranteed. It suits those seeking potential income or diversification, though it carries risks related to interest rate sensitivity.

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SGOV vs TLT

Fund Snapshot