iShares 0-3 Month Treasury Bond ETF (SGOV)

treasury-bonds cash-management us-treasury-bonds

A passively managed fund that aims to track the ICE 0-3 Month US Treasury Securities Index. It invests in U.S. Treasury bonds with extremely short maturities, typically 0-3 months. SGOV has a very low expense ratio of 0.07%, making it cost-effective for investors. The fund distributes dividends monthly, providing regular income. Its weighting methodology is based on market value, with larger Treasury issues receiving higher allocations. A key differentiating quality of SGOV is its focus on ultra-short-term Treasuries, which can offer stability and liquidity while potentially providing better yields than money market funds. This makes it attractive for cash management or as a low-risk component in a diversified portfolio. The ETF typically holds between 10 to 20 different Treasury securities, reflecting the limited number of issues available within its narrow maturity range.