SGOV vs. BIL: Comparing Treasury Bill ETFs
In brief
SGOV tracks U.S. Treasury securities with 0–3 months remaining, while BIL targets Treasury bills with 1–3 months remaining; both are short-duration Treasury ETFs, but their benchmarks, expenses, portfolios, and tradable-share risks differ.
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The main idea
Compare SGOV and BIL by maturity band, current SEC yield, expenses, spreads, and the need for ETF liquidity—not by share price or trailing distribution alone.
At a glance
BIL maturity band
1–3 months
BIL follows the Bloomberg 1-3 Month U.S. Treasury Bill Index.
State Street Investment Management ↗The maturity windows are close, not identical
SGOV's benchmark includes Treasury securities with up to three months remaining, including the shortest part of that range. BIL's benchmark begins at one month and extends to less than three months.
That difference can affect portfolio turnover, duration, and yield. Compare current portfolio characteristics rather than assuming one ticker is a clone of the other.
SEC yield is the cleaner current income comparison
The 30-day SEC yield is a standardized measure of recent net investment income. A trailing distribution yield reflects past payments and can lag changes in short-term rates.
Compare the same yield definition and as-of date. Neither yield is guaranteed, and both should generally move when Treasury-bill rates and fund expenses change.
Sources: iSharesState Street Investment ManagementSEC Investor.gov
ETF shares are not direct Treasury bills
Direct Treasury bills are obligations of the U.S. government held to a maturity date. ETF shareholders own fund shares that trade intraday and can sell at a premium or discount to net asset value.
The ETFs continuously roll holdings, charge expenses, and do not provide an individual investor with a fixed maturity date or known redemption value for each ETF share.
Sources: iSharesState Street Investment ManagementTreasuryDirectSEC Investor.gov
Taxes and trading mechanics still matter
Treasury interest is subject to federal income tax but exempt from state and local income taxes. A fund may report the qualifying portion of its distributions after year-end; the exact treatment depends on reported income and the investor's jurisdiction.
Also review spreads, settlement, brokerage access, and whether direct Treasury bills, an insured bank deposit, or a government money market fund better fits the liquidity need.
Sources: TreasuryDirectSEC Investor.govInternal Revenue Service
Before choosing a fund
Questions to verify
- Compare maturity ranges and current duration.
- Use same-date 30-day SEC yields.
- Verify expense ratios and bid-ask spreads.
- Distinguish ETF shares from direct bills held to maturity.
- Review state-tax reporting and liquidity needs.
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