SGOV's yield in October 2026 is set by Treasury bill rates, and those rates have risen. The 3-month Treasury bill yielded 4.26% on October 20, 2026, up from 3.67% at the end of 2025 and 3.87% on June 30, after the Federal Reserve raised its target range by 0.25 points to 3.75% to 4.00% on September 16, 2026 [1]. The iShares 0-3 Month Treasury Bond ETF (SGOV) reported a 30-day SEC yield of 3.54% as of June 30, 2026, when bills paid less [2]. Because SGOV holds bills that mature within three months, its yield follows the bill rate with a lag of weeks, not months.
What is SGOV's yield in October 2026?
The issuer's most recent figure in this article's source is the 3.54% SEC yield as of June 30, 2026 [2]. The market rates that drive it have moved up since then. DataPorium's Treasury data show the full bill curve higher than a month earlier and much higher than a year earlier at the one-year and longer maturities [1]:
| Treasury par yield | Oct 17, 2025 | Sep 18, 2026 | Oct 19, 2026 |
|---|---|---|---|
| 1-month | 4.18% | 3.97% | 4.11% |
| 3-month | 4.00% | 4.14% | 4.27% |
| 6-month | 3.79% | 4.24% | 4.37% |
| 1-year | 3.56% | 4.44% | 4.50% |
| 2-year | 3.46% | 4.76% | 4.77% |
| 10-year | 4.02% | 5.01% | 5.15% |
Source: DataPorium Economic Metrics, daily U.S. Treasury par yield curve rates [1].
Two things changed in 2026. First, the Fed moved. It held its target range at 3.50% to 3.75% at five meetings from January to July 2026, then raised it to 3.75% to 4.00% on September 16, effective September 17 [1]. The effective federal funds rate averaged 3.63% in August 2026 and 3.75% in September 2026, the latest month in DataPorium's data, against 4.22% in September 2025 [3]. The next scheduled meeting in the data ends on October 28, 2026 [1].
Second, the curve steepened. A year earlier, on October 17, 2025, the 10-year note paid just 0.02 points more than the 3-month bill; on October 19, 2026 the gap was 0.88 points [1].
Our analysis of DataPorium's Treasury yield data shows the 3-month bill rate rose 0.59 points in 2026, to 4.26% on October 20, while the 2-year note rose 1.32 points to 4.79% and the 10-year note 0.94 points to 5.12%.
What are SGOV, BIL and FLOT?
SGOV holds Treasury bills maturing within three months. As of June 30, 2026, its weighted average maturity and effective duration were both 0.11 years, its net assets were $95,892.45 million and its expense ratio was 0.09% [2]. Its ten largest bills were 68.76% of the portfolio, with 44.98% of assets maturing in 31 to 60 days [2].
BIL, the SPDR Bloomberg 1-3 Month T-Bill ETF, is the older fund doing the same job with bills of one to three months. It carries a gross expense ratio of 0.1353% and returned 0.29% in June 2026, 0.88% in the second quarter and 1.74% in the first half at net asset value [4].
FLOT, the iShares Floating Rate Bond ETF, is a different kind of fund. It holds floating-rate notes, mostly issued by companies, whose coupons reset with short-term rates. That keeps its price risk low, but it adds corporate credit risk that Treasury bill funds do not carry. No yield figure for FLOT is used in this article.
What is the difference between SEC yield and distribution yield?
The two yields answer different questions:
- 30-day SEC yield is a standardized figure that funds must calculate the same way. It takes the net investment income earned over the last 30 days, after fees, annualizes it and divides by the share price. For a bill fund, it is the closest thing to the yield of the current portfolio.
- Distribution yield is the cash actually paid to holders, divided by the price. A trailing 12-month version adds up the last year of payments; a latest-payment version annualizes the most recent monthly distribution. Both look backward, so they lag when rates change.
DataPorium's ETF data show the lag clearly in two iShares bond funds with monthly payments [5]:
| Measure (as of October 19, 2026) | SHY (1-3 year Treasuries) | AGG (U.S. aggregate bonds) |
|---|---|---|
| Closing price | $81.31 | $95.11 |
| Distributions, 12 months to October 19, 2026 | $2.947 | $3.966 |
| Trailing 12-month distribution yield | 3.62% | 4.17% |
| October 1 payment, annualized | 3.56% | 4.21% |
| Price change, June 30 to October 19, 2026 | -0.97% | -3.91% |
| 52-week trading range | $80.95 to $83.20 | $93.84 to $101.46 |
Source: DataPorium ETFs, daily prices and distributions to October 19, 2026 [5].
SHY's 3.62% trailing distribution yield sits well below the 4.50% 1-year and 4.77% 2-year Treasury yields of the same day [1][5]. The payments still reflect bonds bought when rates were lower. AGG shows the same pattern: its distributions imply about 4.2%, while its SEC yield was already 4.51% on June 30, 2026 [5][6]. For a bill fund like SGOV the gap is smaller, because its portfolio turns over every few weeks, but in a month after a rate hike the SEC yield usually leads and the distribution yield follows.
SGOV vs BIL: which one pays more?
The two funds hold the same kind of asset, so the fee is the main difference. SGOV's 0.09% expense ratio is lower than BIL's 0.1353%, a gap of about 0.045 points a year that comes straight out of the yield [2][4]. On a $10,000 holding, that is about $4.50 a year.
SGOV's record shows what a low fee and a short bill ladder delivered: 3.90% over one year, 4.68% a year over three years and 3.59% a year over five years to June 30, 2026 [2]. It earned 5.28% in calendar 2024 and 4.24% in 2025, as bill rates came down [2]. BIL's 1-3 month index gives it a slightly longer ladder, but with both funds near 0.1 years of duration the difference in price risk is minimal [2][4].
Is holding cash still worth it after the September 2026 rate hike?
The months since mid-2026 have been a test of the case for cash. From June 30 to October 19, 2026, AGG's price fell 3.91%, or about 2.6% after its four monthly distributions, as longer yields rose [5]. SHY, with one to three years of maturity, lost 0.97% in price and was roughly flat at +0.2% after distributions [5]. Over the same 111 days, bills yielding 3.8% to 4.3% earned roughly 1.2% in interest, with no meaningful price change [1].
- Price stability: SGOV's 0.11-year duration means a one-point move in yields changes its price by about 0.1%, and its three-year standard deviation was 0.21% as of June 30, 2026 [2].
- Yield close to the policy rate: with the Fed's target range at 3.75% to 4.00% since September 17, 2026, bill yields of 4.1% to 4.4% pass through nearly all of the policy rate [1].
- Tax treatment: interest on Treasury bills is generally exempt from state income tax, unlike most bank deposit interest.
- Liquidity: both funds trade on exchange all day and pay monthly distributions [2].
The case against holding too much cash has also shifted. Reinvestment risk works both ways: bill income rises quickly after a hike and falls quickly after a cut, while a 2-year note at 4.79% on October 20, 2026 fixes that yield for two years [1]. Longer bonds now pay more than bills, with the 10-year at 5.12% on the same day, but they carry price risk; AGG had a 5.80-year duration as of June 30, 2026 [1][6]. And over long periods, stocks have compounded well above bills. Cash-like funds fit money with a short time horizon, not long-term growth.
Bill rates, the Fed's decisions and the full yield curve are updated daily on DataPorium's interest rates page, with fund prices on the ETF page.
Key takeaways
- The 3-month Treasury bill yielded 4.26% on October 20, 2026, up 0.59 points from the end of 2025 [1].
- The Fed raised its target range to 3.75% to 4.00% on September 16, 2026; the next meeting in DataPorium's data ends October 28, 2026 [1].
- SGOV's 30-day SEC yield was 3.54% as of June 30, 2026; its 0.09% fee is below BIL's 0.1353% [2][4].
- Distribution yields lag: SHY's trailing yield was 3.62% on October 19, 2026, against a 4.50% 1-year Treasury yield [1][5].
- AGG's price fell 3.91% from June 30 to October 19, 2026, while bills earned roughly 1.2% in interest [1][5].
Frequently asked questions
What is SGOV's yield in October 2026?
SGOV's 30-day SEC yield was 3.54% as of June 30, 2026 [2]. Since then the 3-month bill rate that drives it rose from 3.87% to 4.26% on October 20, 2026, so the fund's current yield moves toward that level as its bills roll over [1].
What are FLOT, SGOV and BIL?
SGOV and BIL are Treasury bill ETFs holding bills of up to three months, with expense ratios of 0.09% and 0.1353% [2][4]. FLOT holds floating-rate notes issued mostly by companies, so it adds corporate credit risk.
Which one pays more, SGOV or BIL?
Their gross yields track the same bill rates, so the lower fee decides it: SGOV's expense ratio is about 0.045 points a year below BIL's, which gives SGOV a small edge [2][4].
Are T-bill ETFs safe?
They hold only U.S. Treasury bills with maturities of a few weeks to three months, so credit risk is minimal and price moves are tiny; SGOV's three-year standard deviation was 0.21% as of June 30, 2026 [2]. They are not FDIC insured, and their income falls when the Fed cuts rates.
Sources & References
- [1] DataPorium Economic Metrics: Interest Rates (Treasury yields and Fed decisions)
- [2] iShares 0-3 Month Treasury Bond ETF (SGOV) Fact Sheet as of June 30, 2026
- [3] DataPorium Economic Metrics: Federal Funds Rate, Inflation and Other U.S. Series
- [4] State Street SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) fund page and performance
- [5] DataPorium ETFs (SHY and AGG daily prices and distributions)
- [6] iShares Core U.S. Aggregate Bond ETF (AGG) Fact Sheet as of June 30, 2026