SGOV vs USFR

Quick Verdict

SGOV has a lower expense ratio. USFR delivered stronger 1-year returns. SGOV offers more diversification with 2 holdings.

Lower Fees: SGOVHigher Returns: USFRMore Diversified: SGOV

Side-by-Side Comparison

MetricSGOVUSFRWinner
Expense Ratio0.09%0.15%
AUM$99.7B$18.3B
Dividend Yield3.85%3.84%
Holdings236
YTD Return+1.88%+2.33%
1Y Return+3.52%+3.95%
3Y Return (annualized)+4.51%+4.52%
5Y Return (annualized)+3.62%+3.72%
Volatility (annualized)0.7%0.9%
Max Drawdown-0.3%-1.4%
Fund FamilyiShares by BlackRock (US)WisdomTree Investments
CategoryFixed IncomeFixed Income
InceptionMay 26, 2020Feb 4, 2014

SGOV vs USFR Performance

iShares 0-3 Month Treasury Bond ETF (SGOV) is a ETF from iShares by BlackRock (US) and WisdomTree Floating Rate Treasury Fund (USFR) is a ETF from WisdomTree Investments. Over the past year SGOV returned +3.52% while USFR returned +3.95%. Year to date, SGOV is up 1.88% versus a gain of 2.33% for USFR.

Over three years, SGOV compounded at +4.51% per year against +4.52% for USFR; over five years the annualized figures are +3.62% and +3.72% respectively. Across the full 6-year window we track, SGOV has the edge at +2.91% annualized vs +1.49%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

USFR has been the more volatile fund, with annualized monthly volatility of 0.9% 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 -1.4% for USFR. 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 0.81. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

SGOV charges 0.09% per year while USFR charges 0.15%. On a $10,000 position that is $9 vs $15 annually, a gap of $6 per year that compounds over a long holding period. On income, SGOV currently yields 3.85% against 3.84% for USFR.

Holdings Overlap

0.0%overlap

SGOV and USFR share 0 holdings out of 3 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 USFR?

SGOV has an expense ratio of 0.09% while USFR charges 0.15%. SGOV is the cheaper option. On a $10,000 investment, that is $6 per year of difference.

Which performed better, SGOV or USFR?

Over the past year SGOV returned +3.52% vs +3.95% for USFR, so USFR leads on 1-year performance. Over the longest common window we track (6 years), SGOV annualized +2.91% vs +1.49% for USFR. Past performance does not guarantee future results.

Which is riskier, SGOV or USFR?

USFR has been the more volatile fund at 0.9% annualized versus 0.7% for SGOV. Worst drawdown: SGOV -0.3% vs USFR -1.4%.

Should I hold both SGOV and USFR?

SGOV and USFR have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SGOV and USFR?

SGOV and USFR share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3 unique securities.

Which pays a higher dividend, SGOV or USFR?

SGOV yields 3.85% while USFR yields 3.84%, so SGOV currently pays the higher dividend yield.

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