If you have money sitting in a brokerage account and want to earn income without taking on the risks of stocks, SGOV and BIL are two short-term Treasury ETFs worth comparing.
Both funds invest primarily in short-term U.S. Treasury bills.
They distribute income monthly, trade on stock exchanges, and generally experience relatively small price movements compared with longer-term bond funds.
But they are not identical.
SGOV has a lower expense ratio and invests in Treasury securities with maturities of up to three months. BIL also invests in short-term Treasury bills, focusing on securities with maturities of one to three months.
Their yields, expenses, trading prices, and tax reporting can differ.
As of October 2026, SGOV had a slight advantage in the latest 30-day SEC yield figures available from the fund providers.
That difference is small enough that your investment amount, brokerage costs, tax situation, and need for accessible cash should also influence your decision.
In this guide, we’ll compare SGOV vs. BIL, explain the latest available figures, show how much income you could earn, and help you decide which ETF may fit your financial goals.
Quick Comparison
SGOV vs. BIL: At a Glance
Comparing yields, fees, maturity ranges, and key features.
SGOV
iShares · BlackRock
3.71%
30-day SEC yield · Oct. 5, 2026
Expense ratio: 0.09%BIL
SPDR · State Street
3.67%
30-day SEC yield · Oct. 7, 2026
Gross expense ratio: 0.1353%| Feature | SGOV | BIL |
|---|---|---|
| Full name | iShares 0-3 Month Treasury Bond ETF | SPDR Bloomberg 1-3 Month T-Bill ETF |
| Fund provider | iShares / BlackRock | State Street SPDR |
| Investment type | Short-term Treasury ETF | Short-term Treasury ETF |
| Treasury maturity range | 0–3 months | 1–3 months |
| 30-day SEC yield | 3.71% as of October 5, 2026 | 3.67% as of October 7, 2026 |
| Expense ratio | 0.09% | 0.1353% gross |
| Distribution frequency | Monthly | Monthly |
| Exchange-traded | Yes | Yes |
| FDIC-insured | No | No |
| Potential state tax benefit | Qualifying Treasury income is generally exempt from state and local income taxes. | Qualifying Treasury income is generally exempt from state and local income taxes. |
| Best-known advantage | Lower annual expense ratio | Longer operating history |
Sources: Official iShares and State Street fund pages. Yield dates differ by two days, so this is a recent snapshot, not a perfectly synchronized comparison. Treasury ETF shares are not FDIC-insured and can lose value.
The latest figures are available from iShares SGOV and State Street BIL.
What Is SGOV?
SGOV is the iShares 0-3 Month Treasury Bond ETF. It seeks to track an index of U.S. Treasury securities with remaining maturities of zero to three months.
Instead of buying individual Treasury bills and managing each maturity yourself, you can purchase SGOV shares through a brokerage account.
The fund holds a portfolio of short-term Treasury securities and distributes income to shareholders according to its distribution schedule.
Why investors choose SGOV
1. A low expense ratio
SGOV’s expense ratio is 0.09% annually. That means the fund’s annual operating expenses are approximately $9 for every $10,000 invested, assuming the balance stays constant.
This is one reason SGOV attracts investors who want a relatively low-cost way to hold short-term Treasury exposure.
2. Very short maturities
SGOV invests in Treasury securities with maturities of up to three months. Short maturities generally limit interest-rate sensitivity compared with longer-duration bond funds.
That does not eliminate price fluctuations, but it can make SGOV useful for investors who want to keep interest-rate risk relatively low.
3. Monthly income distributions
SGOV generally distributes income monthly. This can be convenient if you want periodic cash flow from money held in a brokerage account.
However, monthly distributions are not fixed. They can rise or fall as the fund’s income and market interest rates change.
What are SGOV’s disadvantages?
SGOV is an ETF, not a savings account. Its market price can fluctuate, and you must sell shares to turn your investment into cash.
You may also incur brokerage commissions, bid-ask spread costs, or other transaction expenses depending on your broker and trading activity.
Finally, a low expense ratio does not guarantee the highest yield or total return in every period.
What Is BIL?
BIL is the SPDR Bloomberg 1-3 Month T-Bill ETF, managed by State Street.
It seeks to track an index of U.S. Treasury bills with maturities of one to three months. Like SGOV, it provides access to a portfolio of short-term government debt through an exchange-traded fund.
BIL has been available since 2007, giving it a longer operating history than SGOV, which launched in 2020.
Why investors choose BIL
1. Short-term Treasury exposure
BIL invests in Treasury bills with short maturities. Investors can use it to gain exposure to the short end of the U.S. Treasury yield curve without buying and managing individual bills.
2. Monthly distributions
BIL generally pays distributions monthly. The amount depends on the income generated by its holdings and can change as Treasury yields change.
3. An established fund history
BIL has a longer history of operating through different interest-rate environments. Some investors value that history when comparing similar funds.
A longer history, however, does not mean the fund is guaranteed to perform better.
What are BIL’s disadvantages?
BIL’s gross expense ratio is approximately 0.1353%, higher than SGOV’s 0.09%.
The difference is small, but it can add up over time, particularly for larger balances.
BIL also experiences market-price fluctuations and trading costs. Like SGOV, it does not provide FDIC insurance or a guaranteed return.
SGOV vs. BIL: Which Has the Higher Yield?
Yield is often the first thing investors compare when choosing a short-term Treasury ETF. It matters, but it is important to compare the same type of yield and pay attention to the reporting date.
The 30-day SEC yield is a standardized annualized measure of a fund’s recent income after expenses. It can help investors compare funds, but it does not predict the return they will earn over the next 12 months.
Latest available yield comparison
| Metric | SGOV | BIL |
|---|---|---|
| 30-day SEC yield | 3.71% | 3.67% |
| Reporting date | Oct. 5, 2026 | Oct. 7, 2026 |
| Expense ratio | 0.09% | 0.1353% gross |
Sources: iShares SGOV and State Street BIL.
In this snapshot, SGOV’s reported yield was 0.04 percentage points higher than BIL’s. Because the yields were reported on different dates, that difference should not be treated as a precise same-day advantage.
Yields can change as Treasury bills mature, new bills enter the portfolios, and short-term interest rates move.
How much income could you earn on $10,000?
To make the comparison practical, here is an illustration using the reported yields.
SGOV vs. BIL: Estimated Annual Income
Compare estimated income at the stated 30-day SEC yields.
| Investment | SGOV at 3.71% | BIL at 3.67% | Difference |
|---|---|---|---|
| $5,000 | $185.50 | $183.50 | $2.00 |
| $10,000 | $371.00 | $367.00 | $4.00 |
| $25,000 | $927.50 | $917.50 | $10.00 |
| $50,000 | $1,855.00 | $1,835.00 | $20.00 |
| $100,000 | $3,710.00 | $3,670.00 | $40.00 |
Estimates assume the stated yields remain unchanged for a full year. Actual distributions and returns will vary. SEC yields are annualized measures, not guaranteed returns. Figures are before taxes and assume the stated yields are comparable.
These are illustrative annualized income estimates before taxes. They assume the reported yields remain unchanged for an entire year, which is unlikely to happen exactly.
The actual distributions you receive will vary.
Does SGOV’s higher yield make it the better choice?
Not automatically, but SGOV has two measurable advantages in this snapshot: a slightly higher reported yield and a lower expense ratio.
For many individual investors comparing only these two funds, SGOV is a reasonable starting point.
Still, the small yield difference should not distract you from trading costs, your holding period, tax treatment, and whether you need a fund or a bank account for your cash.
SGOV vs. BIL: Expense Ratio Comparison
Both ETFs charge annual operating expenses that are reflected in their fund performance and net income.
SGOV vs. BIL: Annual Expense Comparison
See how the stated expense ratios translate into estimated yearly costs.
| Investment amount | SGOV at 0.09% | BIL at 0.1353% | Approx. difference |
|---|---|---|---|
| $10,000 | $9.00 | $13.53 | $4.53 |
| $25,000 | $22.50 | $33.83 | $11.33 |
| $50,000 | $45.00 | $67.65 | $22.65 |
| $100,000 | $90.00 | $135.30 | $45.30 |
Estimated annual expenses assume the investment amount remains constant for a full year and the stated expense ratios apply. Actual fund expenses may vary. BIL’s figure is the stated gross expense ratio.
These estimates assume constant investment balances. Actual expenses depend on the fund’s assets and the period you hold it.
The difference is relatively small on a modest balance. But if you hold a large amount of cash for years, lower costs can help preserve more of your investment return.
Keep in mind that your personal trading expenses are separate from the expense ratio. A brokerage commission or wide bid-ask spread can offset some of the cost advantage.
SGOV vs. BIL: Which Is Safer?
Both ETFs invest in short-term U.S. Treasury securities, so they have relatively low credit risk compared with funds holding corporate bonds.
However, neither is risk-free.
1. Interest-rate risk
Bond prices generally move in the opposite direction from market interest rates. Shorter-maturity securities tend to be less sensitive to interest-rate changes than longer-maturity securities.
SGOV’s zero-to-three-month maturity range and BIL’s one-to-three-month range both keep their interest-rate sensitivity relatively low.
Their exact sensitivity can still differ as their holdings change.
2. Market-price risk
Both funds trade on stock exchanges. Their market prices can move above or below their net asset values during the trading day.
If you sell when the market price is lower than your purchase price, you could incur a loss. This is different from holding an individual Treasury bill to maturity.
3. Inflation risk
If inflation rises above the income your investment earns, your purchasing power may decline even if the nominal value of your investment remains relatively stable.
4. Liquidity and trading risk
Both funds are exchange-traded, but the price you receive when selling depends on market conditions, your order, and the bid-ask spread.
Using a limit order can help you control the price at which you are willing to buy or sell, although execution is not guaranteed.
Are SGOV and BIL FDIC-insured?
No. Neither fund is an FDIC-insured bank deposit.
The Treasury securities held by the funds are obligations of the U.S. government, but the ETF shares themselves are not bank deposits and do not receive FDIC insurance.
If your main concern is protecting money for immediate spending, an eligible FDIC-insured savings account may be a better fit for that portion of your cash.
SGOV vs. BIL: Which Is Better for Taxes?
Taxes can make Treasury ETFs attractive to investors who live in states with income taxes.
Both funds primarily hold U.S. Treasury securities. Interest from qualifying direct U.S. Treasury obligations is generally exempt from state and local income taxes, although it remains subject to federal income tax.
The important detail is that you should use each fund’s annual tax reporting to determine the portion of distributions that qualifies for state tax exemption. Do not automatically assume that every dollar of a distribution receives identical treatment.
Federal taxes
Distributions attributable to Treasury interest are generally taxable at the federal level. The exact reporting treatment can depend on the character of the distribution and your tax circumstances.
State and local taxes
Qualifying Treasury interest is generally exempt from state and local income taxes. This may provide a benefit compared with some bank interest or other investment income.
However, each fund’s annual tax supplement should be checked before calculating your state tax savings.
Example: How much could state tax savings matter?
Suppose you receive $3,700 in annual income from a Treasury ETF and, for illustration, 95% of that income qualifies for state income tax exemption.
If your state income tax rate is 5%, the potential tax savings would be:
$3,700 × 95% × 5% = $175.75
This is an example, not a claim about either fund’s actual qualifying percentage. Your actual savings depend on the fund’s tax reporting, state rules, and personal circumstances.
What should you do at tax time?
- Download the fund’s annual tax information.
- Check the percentage of income attributable to qualifying U.S. government obligations.
- Review your state’s rules for exempting that income.
- Keep the relevant tax documents with your records.
- Consult a tax professional if you are unsure how to report the distributions.
If you invest through a tax-advantaged retirement account, the state tax exemption may not provide the same immediate benefit. The account’s own tax rules still apply.
SGOV vs. BIL for an Emergency Fund
An emergency fund is meant to cover expenses you cannot predict, such as a medical bill, car repair, job loss, or urgent home repair.
SGOV and BIL may be useful for some investors who want Treasury exposure while keeping interest-rate sensitivity relatively low. But neither should automatically replace your checking or savings account.
When SGOV may make sense
Consider SGOV if:
- You want short-term Treasury exposure through an ETF.
- You value a low expense ratio.
- You are comfortable placing trades through a brokerage.
- You can tolerate small market-price fluctuations.
- You understand that distributions and yields can change.
When BIL may make sense
Consider BIL if:
- You already hold it in your portfolio.
- You want exposure to one-to-three-month Treasury bills.
- You prefer a fund with a longer operating history.
- Its current yield and trading costs make sense for your account.
- You understand the risks of an exchange-traded investment.
Should you keep your entire emergency fund in SGOV or BIL?
For many households, it is sensible to keep at least the portion needed for immediate expenses in an accessible bank account with appropriate deposit insurance.
An ETF requires a sale to convert shares into cash. Although these funds are generally liquid, settlement and transfer timing can matter when a bill is due immediately.
If you are comparing Treasury ETFs with money market funds, our guide to SGOV vs. SPAXX for an emergency fund explains how these investment types differ.
You can also read our SPAXX vs. SGOV vs. HYSA comparison for a broader look at cash-management options.
SGOV vs. BIL: Which Is Better for Short-Term Savings?
The right choice depends on when you need the money and how much flexibility you want.
If you need the money within days
A bank account with immediate access may be more appropriate than either ETF. Selling ETF shares involves a market transaction and settlement.
If you are holding cash for a few months
SGOV and BIL may be worth comparing if you are comfortable with small market-price changes and want exposure to Treasury bills.
For a specific known expense, you might also compare buying an individual Treasury bill that matures before the money is needed. A bill held to maturity has a different cash-flow structure from an ETF that continually holds and replaces securities.
If you are holding cash for a year or longer
Compare the current yields with high-yield savings accounts, Treasury bills, certificates of deposit, and money market funds. Consider taxes, liquidity, fees, and the possibility that yields will decline.
No short-term ETF can guarantee that today’s yield will remain available for the next year.
SGOV vs. BIL: Which Should You Buy?
For an investor who has already decided to use a short-term Treasury ETF, SGOV is a sensible first fund to evaluate because it has a lower expense ratio.
But the final choice should not be based on the ticker alone.
SGOV vs. BIL: Which Fits Your Needs?
Match your cash-management priority with the investment or account that may be better suited to it.
| Your priority | What to consider |
|---|---|
| Lower annual fund expenses | SGOV |
| Slightly higher yield in the latest figures reviewed |
SGOV Subject to the different reporting dates. |
| Longer operating history | BIL |
| Treasury exposure with low interest-rate sensitivity | Both |
| State tax benefits on qualifying Treasury income |
Both Subject to annual tax reporting and applicable state rules. |
| Immediate access to insured cash |
Bank deposit account Consider an eligible FDIC-insured account within applicable coverage limits. |
| A known expense on a specific date |
Individual Treasury bill Consider a bill maturing before the payment is due. |
Yields change over time, and ETF shares can fluctuate in price. Bank deposits and Treasury securities have different protections, liquidity characteristics, and risks. Check current fund data and your own cash-flow needs before investing.
My take
For many retail investors comparing only SGOV and BIL, SGOV is the stronger starting point because of its lower expense ratio and slightly higher yield in the latest available snapshot.
BIL remains a reasonable alternative. The funds are similar in their basic purpose, and the difference in annual expenses is modest for smaller balances.
If you already own BIL, there may be little reason to switch solely because SGOV’s expense ratio is lower. Consider any trading costs, taxable gains, and the size of the expected benefit before making a change.
Frequently Asked Questions
Is SGOV better than BIL?
SGOV had a lower expense ratio and a slightly higher reported 30-day SEC yield in the latest figures reviewed. However, both funds offer short-term Treasury exposure. The best choice depends on current yields, costs, taxes, and your cash needs.
Does SGOV pay more than BIL?
The latest available figures reviewed showed a 3.71% 30-day SEC yield for SGOV as of October 5, 2026, and 3.67% for BIL as of October 7, 2026. Because the reporting dates differ, compare the latest official figures before investing.
How often do SGOV and BIL pay dividends?
Both funds generally make monthly distributions. The amounts can vary with interest rates, portfolio income, and fund expenses.
Are SGOV and BIL safe investments?
Both hold short-term U.S. Treasury securities and generally have low interest-rate sensitivity. However, they are ETFs, not insured bank deposits. Their market prices can fluctuate, and investors can lose money if they sell at an unfavorable price.
Are SGOV and BIL tax-free?
No. Qualifying Treasury interest is generally exempt from state and local income taxes but remains subject to federal income tax. Check each fund’s annual tax information for the qualifying portion of its distributions.
Can I use SGOV or BIL instead of a high-yield savings account?
They can be alternatives for some investment cash, but they are not identical. A high-yield savings account may offer FDIC insurance and direct access to cash, while an ETF requires selling shares and settling the trade.
What happens when interest rates fall?
The income generated by short-term Treasury ETFs generally declines as their holdings mature and are replaced with lower-yielding securities. The change does not necessarily happen all at once because the funds hold securities with different remaining maturities.
Should I switch from BIL to SGOV?
Not automatically. SGOV’s lower expense ratio may provide a small long-term advantage, but consider trading costs, taxes on any realized gains, and the actual yield difference before switching.
Final Verdict: SGOV vs. BIL
SGOV and BIL offer similar ways to invest in short-term U.S. Treasury bills through an ETF.
SGOV stands out for its lower expense ratio and, in the latest figures reviewed, a slightly higher reported 30-day SEC yield. BIL offers a similar short-term Treasury strategy and a longer operating history.
For many investors who want low-cost Treasury exposure, SGOV is a reasonable starting point. But the difference between these funds is small enough that it is worth checking current yields, trading costs, and tax considerations before making a decision.
Most importantly, choose the option that matches when you need your money, how much risk you can tolerate, and whether you need an investment or an insured cash account.
Financial disclaimer: This article is for educational purposes only and is not individualized investment, tax, or legal advice. SGOV and BIL are exchange-traded funds, not FDIC-insured deposits. Their share prices and distributions can change, and investors can lose money. Review the latest prospectuses and consult a qualified tax professional about your situation.
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