Treasury Ladders & Yield Math

30-Day SEC Yield calculates the annualized yield-to-maturity of the underlying bonds held over the most recent 30-day period after deducting the fund's expense ratio [Form N-1A Item 26, SEC, 2026-10-15]. Trailing 12-Month (TTM) Distribution Yield sums actual cash dividends paid over the past 365 days divided by current NAV, causing it to lag by up to 11 months during Federal Reserve interest rate cuts or hikes [FREDEFFR Benchmark Data, Federal Reserve Bank of St. Louis, 2026-10-16].

Assuming a 4.35% gross Treasury bill return [Daily Treasury Bill Rates, U.S. Department of the Treasury, 2026-10-16], an ETF charging 3 bps (0.03%) grows $100,000 to $152,649 over 10 years, whereas an ETF charging 13.56 bps (0.1356%) grows to $151,167—a direct compounding fee drag of $1,482, or 148.2 bps of starting principal [ETFYield Lab Expense Ratio Calculator, 2026-10-20].

Ultra-short ETFs like SGOV carry a modified duration of 0.09 years, losing less than 0.09% in NAV if yields rise by 100 bps [Fund Disclosure Data, SEC EDGAR, 2026-10-15]. Extending into IEF (7.14 years modified duration) or TLT (15.82 years modified duration) is quantitatively justified only when the 10-year to 3-month Treasury term spread compensates for convexity risk or when FOMC rate cuts reduce front-end reinvestment yields below the 10-year par yield of 4.18% [Daily Treasury Par Yield Curve, U.S. Department of the Treasury, 2026-10-16].

iShares 0-3 Month Treasury Bond ETF (SGOV) Yield & Fee Benchmark (SGOV-0-3M-UST) refers to the institutional benchmark and regulatory parameter governed by SEC Form N-1A / U.S. Treasury in US, currently recorded at 4.31% (30-Day SEC Yield (3 bps ER)) as of 2026-10-20. It directly dictates Form N-1A Item 26 accrual accounting versus backward-looking dividend cash flows.

While SGOV-0-3M-UST is anchored at 4.31% (30-Day SEC Yield (3 bps ER), Source: SEC Form N-1A / U.S. Treasury, 2026-10-20), BIL-1-3M-TBILL tracks at 4.20% (30-Day SEC Yield (13.56 bps ER), Source: SEC EDGAR / State Street, 2026-10-20). Portfolio managers reconcile both metrics to optimize Form N-1A Item 26 accrual accounting versus backward-looking dividend cash flows.

Institutional desks recalibrate SGOV-0-3M-UST (4.31% 30-Day SEC Yield (3 bps ER)) against official SEC Form N-1A / U.S. Treasury releases on a daily and quarterly cycle, maintaining a 30-day review cadence alongside USFR-TFLO-FRN (4.26% 30-Day SEC Yield (0.02Y Dur), Source: U.S. Treasury FRN Auction, 2026-10-18).