What distinguishes SGOV from USFR in terms of fund structure?

SGOV is an iShares 0-3 Month Treasury Bond ETF, focusing on short-term fixed-income securities, while USFR is a WisdomTree Floating Rate Treasury Fund, which typically holds instruments with variable interest rates that adjust with market conditions. Both aim to provide low-risk exposure to U.S. Treasuries, but SGOV maintains fixed yields over short durations, whereas USFR adjusts income based on prevailing rates, potentially offering inflation resilience.

Why is the difference in operational history between SGOV and USFR relevant?

USFR has been operational since February 2014, offering investors over a decade of performance data and management experience. In contrast, SGOV launched in May 2020, resulting in a shorter track record. While past performance does not guarantee future results, a longer operational history can help investors assess how each fund manages different market cycles and interest rate changes over time.

How do the expense ratios of SGOV and USFR compare, and what does this mean for costs?

SGOV charges an expense ratio of 0.09%, which is lower than USFR's 0.15%. This means that SGOV costs 0.06 percentage points less annually, reducing the drag on returns. For example, on a $10,000 investment, SGOV would incur $9 in annual fees, compared to $15 for USFR. Over time, these differences compound, making SGOV more cost-efficient for long-term holders.

How do SGOV and USFR track their respective markets?

Neither SGOV nor USFR has publicly available index methodology data, making it difficult to assess their precision in tracking benchmarks. However, SGOV is designed to reflect the performance of 0-3 Month U.S. Treasury Bonds, while USFR focuses on floating-rate Treasury bills, whose yields reset frequently. Despite the lack of transparent tracking data, both aim to mirror low-volatility short-term Treasury exposures through passive management.

Are there overlapping top holdings between SGOV and USFR?

Top holdings data is not available for SGOV, and USFR only discloses one holding, NCA at 0.53%. Consequently, no shared top-10 holdings can be confirmed between the two funds. The absence of detailed holdings transparency limits the ability to directly compare portfolio composition or assess diversification across their respective Treasury strategies.

How do the dividend yields of SGOV and USFR compare?

USFR offers a slightly higher dividend yield of 3.74%, compared to SGOV's 3.69%. While both generate regular income from U.S. Treasury interest payments, USFR's floating-rate structure means its distributions can fluctuate with changes in short-term interest rates. SGOV's fixed-duration Treasuries may offer more stable income, though its yield is marginally lower at present. Investors should consider income expectations and rate environment when evaluating these funds.

How might rising interest rates impact SGOV and USFR differently?

Because SGOV holds 0-3 Month Treasury Bonds, its value may experience modest fluctuations tied to short-term rate movements, though duration risk remains low. USFR, holding floating-rate Treasuries, may see its income adjust upward as rates rise, potentially enhancing yield over time. However, in falling rate environments, USFR's income may decrease as instruments reprice lower.

What does the scale of net assets indicate for SGOV and USFR?

SGOV manages $110.9 billion in net assets, suggesting very high liquidity and the ability to accommodate large institutional and retail trades with minimal market impact. USFR holds $19.6 billion, which is still substantial and sufficient for typical retail trading, though smaller than SGOV. Greater asset size often correlates with tighter bid-ask spreads and better execution quality.

Which type of investing goal is each fund typically associated with?

SGOV is often used for cash-equivalent purposes, such as preserving capital and generating income with minimal volatility. USFR, with its floating-rate design, may be favoured for portfolios seeking a hedge against rising rates while maintaining low credit risk. Neither fund aims for capital appreciation; both serve primarily as conservative income and liquidity tools within a broader portfolio strategy.

What should investors know before comparing SGOV and USFR?

This content is educational and not financial advice. Investors should verify current expense ratios, yields, and holdings directly from fund providers, as data may change. While SGOV offers a lower cost and larger asset base, USFR provides a longer operational history and a slightly higher yield. The best choice depends on individual objectives, risk tolerance, and tax considerations. Always consult a qualified financial professional for personalised guidance.

SGOV vs USFR

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

This page compares SGOV and USFR, covering fees, holdings, dividends and how each fund tracks its market. SGOV has a 0.09% expense ratio, while USFR is 0.15%. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

SGOV

Metric

USFR

0.09%

Expense Ratio

0.15%

3.69%

Dividend Yield

3.74%

$110.87B

Net Assets

$19.62B

Holdings

May 26, 2020

Inception Date

Feb 4, 2014

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Index Tracked

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Ultrashort Bond

Fund Category

Ultrashort Bond

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 offers a low 0.09 percent expense ratio, reducing annual holding costs for investors.
SGOV maintains substantial net assets of $110.9 billion, suggesting robust liquidity and scale.
SGOV delivers a dividend yield of 3.69 percent, supporting regular income distributions.

Considerations

SGOV lacks available top holdings data, limiting transparency into its specific portfolio composition.
SGOV has no index methodology data available, complicating assessment of its tracking precision.
SGOV was launched in May 2020, providing a shorter operational history than some peers.

USFR

Pros

USFR provides a slightly higher dividend yield of 3.74 percent compared to some alternatives.
USFR has operated since February 2014, offering a longer track record of fund management.
USFR holds $19.6 billion in net assets, indicating sufficient size for typical retail trading.

Considerations

USFR charges a 0.15 percent expense ratio, which is higher than lower-cost alternatives.
USFR discloses minimal top holdings detail, with only one small 0.53 percent holding listed.
USFR lacks available index tracking data, hindering evaluation of its benchmark adherence.

About SGOV and USFR

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.

USFR (USFR)

The WisdomTree Floating Rate Treasury Fund (USFR) is an exchange-traded fund designed to offer exposure to a basket of U.S. Treasury securities with floating rates. This structure aims to provide income that adjusts with prevailing short-term interest rates, making it potentially attractive when rates are rising or volatile. With a low expense ratio of 0.15% and net assets exceeding USD 19 billion, it is a significant player in the ultrashort bond category. The fund holds just six types of securities, focusing on high-quality, government-backed instruments. While the dividend yield stands at 3.74%, investors should remember that capital values can fluctuate, and returns are not guaranteed. It serves as a defensive tool in a portfolio, balancing yield against the risk of interest rate changes. However, it does not protect against inflation beyond current rates.

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SGOV vs USFR

Fund Snapshot