iShares 0-3 Month Treasury Bond ETF
Invests in ultra-short-term U.S. Treasury bills with maturities of three months or less.
Why This Week?
SGOV is essentially a cash equivalent. It provides the risk-free rate of return backed by the U.S. government with virtually zero interest rate or credit risk. It's the perfect parking spot for an emergency fund, short-term savings, or dry powder waiting to be deployed into the market.
Key Metrics
Top Holdings
1 holdings shown. Weights are approximate.
Pros & Cons
Strengths
- Ultra-safe capital preservation.
- Yields track closely to the Federal Reserve's target rate.
- Distributions are generally exempt from state and local income taxes in the US.
Risks & Weaknesses
- Yields will drop immediately if the Federal Reserve cuts interest rates.
- Provides no capital appreciation.
- Returns may not keep pace with high inflation in the long term.
Alternatives Comparison
| ETF | Name | TER |
|---|---|---|
| SGOVThis Week | iShares 0-3 Month Treasury Bond ETF | 0.07% |
| BIL | SPDR Bloomberg 1-3 Month T-Bill ETF | 0.14% |
| BOXX | Alpha Architect 1-3 Month Box ETF | 0.19% |
💬 Frequently Asked Questions
Want to Explore Further?
SGOV launched recently, so try backtesting SMH or SOXX as semiconductor proxies, or explore our ETF database for alternatives.
Disclaimer: ETF of the Week is educational content only. It is not investment advice, a recommendation to buy or sell, or an endorsement of any fund. Past performance does not guarantee future results. Always do your own research and consult a financial advisor before investing.