SGOV vs SPY
iShares 0-3 Month Treasury Bond ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SGOV has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SGOV | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.09% | |
| AUM | $99.7B | $789.1B | |
| Dividend Yield | 3.85% | 1.01% | |
| Holdings | 23 | 505 | |
| YTD Return | +1.89% | +13.68% | |
| 1Y Return | +3.53% | +21.53% | |
| 3Y Return (annualized) | +4.51% | +21.44% | |
| 5Y Return (annualized) | +3.62% | +13.18% | |
| Volatility (annualized) | 0.7% | 15.3% | |
| Max Drawdown | -0.3% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | May 26, 2020 | Jan 22, 1993 |
SGOV vs SPY Performance
iShares 0-3 Month Treasury Bond ETF (SGOV) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year SGOV returned +3.53% while SPY returned +21.53%. Year to date, SGOV is up 1.89% versus a gain of 13.68% for SPY.
Over three years, SGOV compounded at +4.51% per year against +21.44% for SPY; over five years the annualized figures are +3.62% and +13.18% respectively. Across the full 6-year window we track, SPY has the edge at +8.85% annualized vs +2.91%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 0.7% for SGOV. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -0.3% for SGOV and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.04. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SGOV charges 0.09% per year while SPY charges 0.09%. On a $10,000 position that is $9 vs $9 annually, a gap of $0 per year that compounds over a long holding period. On income, SGOV currently yields 3.85% against 1.01% for SPY.
Holdings Overlap
SGOV and SPY share 0 holdings out of 505 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SGOV or SPY?
SGOV has an expense ratio of 0.09% while SPY charges 0.09%. SGOV is the cheaper option. On a $10,000 investment, that is $0 per year of difference.
Which performed better, SGOV or SPY?
Over the past year SGOV returned +3.53% vs +21.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (6 years), SGOV annualized +2.91% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, SGOV or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 0.7% for SGOV. Worst drawdown: SGOV -0.3% vs SPY -56.5%.
Should I hold both SGOV and SPY?
SGOV and SPY have a monthly-return correlation of 0.04, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SGOV and SPY?
SGOV and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 505 unique securities.
Which pays a higher dividend, SGOV or SPY?
SGOV yields 3.85% while SPY yields 1.01%, so SGOV currently pays the higher dividend yield.
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