SGOV vs. VMFXX

Last updated Jun 11, 2026

SGOV (iShares 0-3 Month Treasury Bond ETF) and VMFXX (Vanguard Federal Money Market Fund) are both funds - SGOV is a Ultrashort Bond fund tracking the ICE 0-3 Month US Treasury Securities Index, while VMFXX is a Money Market fund managed by Vanguard. Over the past 5 years, SGOV returned 3.55%/yr vs 2.39%/yr for VMFXX. At a 0.02 correlation, their price movements are largely independent. SGOV charges 0.09%/yr vs 0.11%/yr for VMFXX.

Performance

SGOV vs. VMFXX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares 0-3 Month Treasury Bond ETF (SGOV) and Vanguard Federal Money Market Fund (VMFXX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SGOV achieves a 1.58% return, which is significantly higher than VMFXX's 1.50% return.

SGOV

• 1D: 0.01%
• 1M: 0.29%
• YTD: 1.58%
• 6M: 1.81%
• 1Y: 3.95%
• 3Y*: 4.71%
• 5Y*: 3.55%
• 10Y*: —

VMFXX

• 1D: 0.00%
• 1M: 0.30%
• YTD: 1.50%
• 6M: 1.82%
• 1Y: 3.95%
• 3Y*: 3.35%
• 5Y*: 2.39%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

SGOV vs. VMFXX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
SGOV iShares 0-3 Month Treasury Bond ETF	1.58%	4.24%	5.27%	5.12%	1.58%	0.02%
VMFXX Vanguard Federal Money Market Fund	1.50%	4.24%	1.64%	4.64%	0.00%	0.00%

Correlation

The correlation between SGOV and VMFXX is -0.03, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.03
Correlation (3Y) Calculated over the trailing 3-year period	-0.01
Correlation (5Y) Calculated over the trailing 5-year period	0.02
Correlation (All Time) Calculated using the full available price history since May 25, 2021	0.02

Return for Risk

SGOV vs. VMFXX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

SGOV

SGOV Risk / Return Rank: 100
SGOV Sharpe Ratio Rank: 100
SGOV Sortino Ratio Rank: 100
SGOV Omega Ratio Rank: 100
SGOV Calmar Ratio Rank: 100
SGOV Martin Ratio Rank: 100

VMFXX

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

SGOV vs. VMFXX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares 0-3 Month Treasury Bond ETF (SGOV) and Vanguard Federal Money Market Fund (VMFXX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	SGOV	VMFXX	Difference
Sharpe ratio: Return per unit of total volatility	20.28	3.67	+16.60
Sortino ratio: Return per unit of downside risk	275.69	—	—
Omega ratio: Gain probability vs. loss probability	195.55	—	—
Calmar ratio: Return relative to maximum drawdown	398.20	—	—
Martin ratio: Return relative to average drawdown	4,461.98	—	—

SGOV vs. VMFXX - Sharpe Ratio Comparison

The current SGOV Sharpe Ratio is 20.28, which is higher than the VMFXX Sharpe Ratio of 3.67. The chart below compares the historical Sharpe Ratios of SGOV and VMFXX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

SGOV vs. VMFXX - Drawdown Comparison

The maximum SGOV drawdown since its inception was -0.03%, which is greater than VMFXX's maximum drawdown of 0.00%. Use the drawdown chart below to compare losses from any high point for SGOV and VMFXX.

Drawdown Indicators

	SGOV	VMFXX	Difference
Max Drawdown Largest peak-to-trough decline	-0.03%	0.00%	-0.03%
Max Drawdown (1Y) Largest decline over 1 year	-0.01%	0.00%	-0.01%
Max Drawdown (3Y) Largest decline over 3 years	-0.01%	0.00%	-0.01%
Max Drawdown (5Y) Largest decline over 5 years	-0.03%	0.00%	-0.03%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-0.00%	0.00%	0.00%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.00%	0.00%	0.00%

Volatility

SGOV vs. VMFXX - Volatility Comparison

The current volatility for iShares 0-3 Month Treasury Bond ETF (SGOV) is 0.05%, while Vanguard Federal Money Market Fund (VMFXX) has a volatility of 0.30%. This indicates that SGOV experiences smaller price fluctuations and is considered to be less risky than VMFXX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SGOV	VMFXX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.05%	0.30%	-0.25%
Volatility (6M) Calculated over the trailing 6-month period	0.13%	0.79%	-0.66%
Volatility (1Y) Calculated over the trailing 1-year period	0.20%	1.12%	-0.92%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.24%	0.94%	-0.70%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.24%	0.94%	-0.70%

SGOV vs. VMFXX - Expense Ratio Comparison

SGOV has a 0.09% expense ratio, which is lower than VMFXX's 0.11% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

SGOV vs. VMFXX - Dividend Comparison

SGOV's dividend yield for the trailing twelve months is around 3.85%, which matches VMFXX's 3.87% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
SGOV iShares 0-3 Month Treasury Bond ETF	3.85%	4.10%	5.10%	4.87%	1.45%	0.03%	0.05%
VMFXX Vanguard Federal Money Market Fund	3.87%	4.14%	1.63%	4.53%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both SGOV and VMFXX in my portfolio?

SGOV and VMFXX have a correlation of -0.03, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SGOV or VMFXX?

VMFXX has higher volatility (0.30%) compared to SGOV (0.05%). In terms of maximum drawdown, SGOV dropped -0.03% vs VMFXX's 0.00%.

Which has better risk-adjusted returns?

SGOV currently has the higher Sharpe Ratio (20.28 vs 3.67), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.