SGOV vs VBIL: Which Should You Pick?
Two 0-3 month Treasury bill ETFs. VBIL is cheaper and was fully state-tax exempt in 2025; SGOV is ten times larger. What the gap is worth, and whether to switch.
SGOV and VBIL both hold Treasury bills maturing inside three months, both run an effective duration near 0.1 years, and both distribute monthly. VBIL is cheaper and was fully exempt from state tax on its 2025 income. SGOV is roughly ten times larger and has five years of history against VBIL’s eighteen months.
Quick answer
For new money in a taxable account, VBIL by a small margin. It yielded 3.65% to SGOV’s 3.63% on September 3, 2026, and it reported 100% of its 2025 income as Treasury interest against SGOV’s 95.14%, so a state-taxing resident owes tax on a sliver of SGOV’s income and none of VBIL’s. For one modeled California holder at a 9.3% state rate that came to roughly $36 a year on $100,000, and about $20 in a state with no income tax. In an IRA the difference is about two basis points. Note that the yield already reflects each fund’s expense ratio, so the 3 basis point fee saving is not an extra bonus on top of it.
| SGOV | VBIL | |
|---|---|---|
| Expense ratio | 0.09% | 0.06% |
| 30-day SEC yield (Sep 3, 2026) | 3.63% | 3.65% |
| 2025 income from US government obligations | 95.14% | 100.00% |
| Net assets | $107.5b | $11.4b |
| Effective duration | 0.10 yr | 0.1 yr |
| Inception | May 2020 | Feb 2025 |
| Sponsor | iShares | Vanguard |
Who should pick which
Pick VBIL for new cash in a taxable account, particularly in a state with meaningful income tax, where the fully exempt income is worth about as much as the yield edge.
Pick SGOV if you move large balances in and out frequently and care about depth of market, or if you already hold it and would rather not think about a realization event for a few dollars a year.
Either is fine inside an IRA or 401(k), where the state tax difference disappears and only about two basis points separate them.
Does this decision matter?
Figures are each issuer’s published numbers read September 7, 2026. Government-obligation percentages are for tax year 2025 and are republished each January.
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