SGOV and BIL are two popular ETFs for U.S. Treasury Bills. Is there a clear choice for 2026? Let's compare them.
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Treasury bills, or T-bills for short, are just ultra-short-term bonds from the U.S. government. These short bonds with maturities of less than a year are called bills. T-bills are referenced as the “risk-free asset” because they are backed by the full faith and credit of the United States government and thus have no liquidity risk or default risk.
SGOV vs. BIL – Video
Prefer video? Watch it below. If not, just scroll down to continue reading.
Intro – T-Bills and ETFs For Them
T-bills are still looking particularly attractive right now in 2026 because interest rates are at an appreciable level. As of August 7, 2026, the 3-month T-bill rate is 3.84%. This makes T-bills a safe place to park cash and still get a decent return above that of a typical savings account. That's the purpose of funds like these: park cash, collect a yield close to the risk-free rate, and don't think about it.
ETFs provide the convenience of not having to buy or manage individual bonds yourself. I covered some T-bills ETFs in a separate post here. Two of the most popular are SGOV from iShares and BIL from SPDR.
SGOV vs. BIL Comparison Table
Before we get into more details, here's a quick comparison table of SGOV and BIL:
| SGOV | BIL | |
|---|---|---|
| Name | iShares 0-3 Month Treasury Bond ETF | SPDR Bloomberg 1-3 Month T-Bill ETF |
| Inception | 2020 | 2007 |
| Issuer | iShares / BlackRock | State Street / SPDR |
| AUM | $101B | $47B |
| Net Expense Ratio | 0.09% | 0.14% |
| Index | ICE 0-3 Month US Treasury Securities Index | Bloomberg 1-3 Month U.S. Treasury Bill Index |
| Maturity Range | 0-3 Months | 1-3 Months |
| Duration | 0.11 years | 0.14 years |
| SEC Yield | 3.59% | 3.55% |
| Bid-Ask Spread | $0.01 | $0.01 |
Data as of August 7, 2026.
SGOV vs. BIL – Details
BIL is one of the oldest ETFs for T-bills, having launched in 2007. It is the SPDR Bloomberg 1-3 Month T-Bill ETF. Its age and authority have made it very popular with over $47 billion in assets.
SGOV, the iShares 0-3 Month Treasury Bond ETF, is much newer and launched in 2020, but has quickly amassed over $100 billion in assets due to it previously being the most affordable ETF for T-bills. It used to have a fee waiver in place that made the net expense ratio 0.05%, but that has since expired, so it's now 0.09%. That's still roughly 1/3 cheaper than the price of BIL at 0.14%.
This difference in fees is precisely the explanation of the difference in historical performance between these two. That smaller fee has allowed SGOV to outperform BIL over its short lifespan:
Whether or not this delta is meaningful for you depends on the size of your investment. On a $10,000 investment in 2020, SGOV would have earned you an extra ~$85 going into 2026.
Also notice SGOV's effective duration is a hair shorter than BIL, as its maturity range is 0-3 months while BIL's is 1-3 months. Practically speaking, this makes basically no difference.
Other than that, these funds can be considered nearly identical. Both hold T-bills with maturities of 3 months or less, albeit via different indexes. SGOV seeks to track the ICE 0-3 Month US Treasury Securities Index while BIL seeks to track the Bloomberg 1-3 Month U.S. Treasury Bill Index.
Both are very popular and highly liquid to where the bid-ask spread is a penny for both.
In conclusion, for basically the same asset, SGOV seems like the clear winner in my opinion due to its lower fee. That said, it's worth noting that there now exist cheaper choices for T-bill ETFs that have launched since these two. I discussed them in a separate post here.
Do you own SGOV or BIL? Let me know in the comments.
Disclaimer: While I love diving into investing-related data and playing around with backtests, this is not financial advice, investing advice, or tax advice. The information on this website is for informational, educational, and entertainment purposes only. Investment products discussed (ETFs, mutual funds, etc.) are for illustrative purposes only. It is not a research report. It is not a recommendation to buy, sell, or otherwise transact in any of the products mentioned. I always attempt to ensure the accuracy of information presented but that accuracy cannot be guaranteed. Do your own due diligence. I mention M1 Finance a lot around here. M1 does not provide investment advice, and this is not an offer or solicitation of an offer, or advice to buy or sell any security, and you are encouraged to consult your personal investment, legal, and tax advisors. Hypothetical examples used, such as historical backtests, do not reflect any specific investments, are for illustrative purposes only, and should not be considered an offer to buy or sell any products. All investing involves risk, including the risk of losing the money you invest. Past performance does not guarantee future results. Opinions are my own and do not represent those of other parties mentioned. Read my lengthier disclaimer here.
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Bonds are a horrible investment. They don’t keep up with monetary inflation. Be an owner not a lender.
Nah.
I’m using $BILS, duration risk was only -0.5% max drawdown in 2022
It’s 3-12 months instead of 0-3 iirc