If you’ve been following the investing world, you might have noticed more and more people talking about BIL and SGOV. These aren’t hot tech stocks or high-risk plays — they’re actually some of the safest places to keep your money while still earning a surprisingly solid return.
So, what exactly are these funds? And why are investors — from beginners to pros — using them as a place to “park cash”? Let’s break it down.
🏦 What Are BIL and SGOV?
BIL and SGOV are ETFs (Exchange-Traded Funds) that invest in short-term U.S. Treasury bills. That means they hold government IOUs that are due to be paid back in just a few weeks or months.
- BIL holds Treasury bills that mature in about 1 to 3 months.
- SGOV holds Treasury bills that mature in 0 to 3 months, so it’s even more short-term.
Because these are backed by the U.S. government, they’re considered extremely low-risk — a smart place to keep cash safe while earning a return.
💰 Why Investors Love These Funds
1. They’re Super Safe
BIL and SGOV invest in U.S. government debt, which is about as low-risk as it gets. There’s virtually no chance of default, so your money is well protected.
2. They Pay Good Interest Right Now
Thanks to higher interest rates, these funds are currently paying around 5% or more in annual yield — far better than the 0.01% you might get from a regular savings account.
3. You Can Get Your Money Out Anytime
These ETFs are liquid, meaning you can buy or sell them whenever the stock market is open. Unlike CDs or bonds that lock up your money, BIL and SGOV give you full flexibility.
4. They Adjust Quickly to Rate Changes
Because the bonds inside mature quickly, the funds respond fast to rising interest rates. That makes them safer than long-term bonds, which can lose value when rates go up.
5. They’re Great for Holding Cash
Many people use these funds as a temporary place to store cash. Whether you’re saving for a purchase, waiting for the right investment, or just want to avoid inflation eating away at your savings, BIL and SGOV are smart, stable choices.
⚖️ BIL vs SGOV: What’s the Difference?
| Feature | BIL | SGOV |
|---|---|---|
| What It Holds | Treasury bills (1–3 months) | Treasury bills (0–3 months) |
| Yield (as of 2025) | Around 5.1% to 5.3% | Slightly higher, ~5.2% to 5.4% |
| Risk | Very low | Very low |
| Best For | Short-term parking | Ultra-short-term cash holding |
They’re both excellent options. SGOV is slightly shorter in duration, so it may respond just a little faster to interest rate changes, but the difference is small for most investors.
🛒 How to Buy BIL and SGOV
You can buy BIL and SGOV just like you’d buy any stock or ETF. All you need is a regular brokerage account — no special bond account required.
Here’s how:
- Open a brokerage account if you don’t already have one. Popular brokers include:
- Fidelity
- Schwab
- Vanguard
- Robinhood
- TD Ameritrade
- Interactive Brokers
- Search by ticker:
- Type “BIL” to find the iShares Short Treasury Bond ETF.
- Type “SGOV” to find the iShares 0–3 Month Treasury Bond ETF.
- Buy shares the same way you’d buy a stock. The price is usually around $100 per share.
- Start earning. Dividends will be paid monthly to your account in cash (or reinvested, depending on your broker settings).
📅 When Do You Get Paid? Ex-Date and Pay Date Explained
BIL and SGOV pay interest as monthly dividends, but there are two important dates to understand:
🗓️ Ex-Dividend Date
You need to own the ETF before this date to get the upcoming dividend. If you buy on or after the ex-date, you’ll miss that month’s payment.
💵 Pay Date
This is the day the dividend is actually deposited into your account — usually a few days after the ex-date.
✅ Example:
If the ex-dividend date is June 3 and the pay date is June 7:
- Buy on June 1 or earlier → you get the dividend.
- Buy on June 3 or later → you miss the dividend and wait for next month.
These dates are announced each month by the ETF issuer and shown on most brokerage platforms.
🌍 A Note on Taxes for Non-U.S. Investors
If you live outside the U.S., be aware that the monthly dividends from BIL and SGOV may be subject to a 30% withholding tax by the IRS. This tax is taken off the top before you receive the money, which can lower your actual yield.
However, many countries have tax treaties with the U.S. that reduce this rate — often to 15% or even less. To get the lower rate, you’ll need to file a W-8BEN form with your broker. If you don’t file, you’ll automatically be charged the full 30%.
It’s a good idea to check your country’s treaty status and talk to a tax advisor if you’re investing from abroad.
🧠 Final Thoughts
BIL and SGOV may not be exciting, but they’re incredibly useful. They offer a safe, flexible way to earn solid interest on your cash, especially when you’re not quite ready to jump into stocks or other investments.
With yields about 5%, monthly payouts, and near-zero risk, these funds are ideal for anyone looking to make their cash work harder — without giving up control.
Disclaimer: This post is for informational purposes only and does not constitute financial advice. Always do your own research or consult with a financial advisor before investing.
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