VUSXX vs SGOV: a $1.00 Treasury money fund against a Treasury bill ETF, 100% vs 95.14% state tax exempt for 2025
Both hold short-term Treasuries, and both clear the state-tax hurdles: Vanguard reports 100% of Vanguard Treasury Money Market Fund's (VUSXX) 2025 dividends as U.S. government income, iShares 95.14% for the iShares 0-3 Month Treasury Bond ETF (SGOV), and both met the 50% test that California, Connecticut and New York require. At the latest yields, VUSXX's 7-day SEC yield of 3.89% (Oct. 16, 2026) and SGOV's 30-day SEC yield of 3.74% (Oct. 15, 2026), VUSXX keeps more in all 50 states and D.C. for our example filer, $66.65 to $83.34 a year on $50,000. Most of that is the yield gap; the tax difference is the 4.86% of SGOV's dividends that most states tax.
- Two different yields. A money fund's 7-day yield and an ETF's 30-day SEC yield are both net of fees but are measured differently. We compound the first weekly (3.97% a year) and the second twice a year (3.77%), as the SEC's yield formulas assume. SGOV would need a 30-day SEC yield of about 3.93% to keep as much as VUSXX in a state without income tax, and 3.95% in California, for this filer.
- The real differences are practical. VUSXX is a Vanguard mutual fund: $3,000 minimum, a fixed $1.00 share price, bought and sold at Vanguard. SGOV is an ETF: one share (about $100), or less where fractional shares are sold, traded at a market price that moves slightly, settling one business day after the trade.
- Costs. Expense ratios of 0.07% (VUSXX, Vanguard's figure as of December 19, 2025) and 0.09% (SGOV). Both yields are already net of them; a brokerage commission on SGOV, where charged, is not.
VUSXX and SGOV side by side
| VUSXX | SGOV | |
|---|---|---|
| Fund | Vanguard Treasury Money Market Fund | iShares 0-3 Month Treasury Bond ETF |
| Sponsor | Vanguard | iShares (BlackRock) |
| Type | Government money market fund (mutual fund), $1.00 share price | Exchange-traded fund; the price moves with its holdings (net asset value $100.58 on Oct. 16, 2026) |
| What it holds | Vanguard: “The fund generally invests 100% of its assets in U.S. Treasury securities and in repurchase agreements fully collateralized by U.S. Treasury securities” | Seeks to track “an index composed of U.S. Treasury bonds with remaining maturities of less than or equal to three months” |
| Current yield | 7-day SEC yield 3.89% (Oct. 16, 2026) | 30-day SEC yield 3.74% (Oct. 15, 2026) |
| Expense ratio | 0.07% (Vanguard's figure as of Dec. 19, 2025) | 0.09% |
| Minimum first purchase | $3,000 | One share at the market price, or less where a brokerage sells fractional shares |
| How you buy and sell | Bought and sold at Vanguard at the $1.00 net asset value, on business days | On the stock exchange at the market price while the market is open, through a brokerage; trades settle one business day later |
| Settlement or sweep fund? | No. Vanguard's settlement fund is VMFXX (or Vanguard Cash Deposit) | No; it is bought and sold like a stock |
| Fees on sales or gates | “Vanguard has chosen not to subject the fund to liquidity fees or redemption gates.” | None from the fund; your brokerage's commission, if any |
| U.S. government share of 2025 dividends | 100.00% | 95.14% |
| Met the 50% test (CA, CT, NY), 2025 | Yes | Yes |
| What the sponsor says about 2025 | Vanguard marks it as a fund that “meets the threshold requirements for California, Connecticut, and New York” | iShares' footnote: “At least 50% of the assets of the fund were invested in Federal Obligations at the end of each quarter of the fiscal year.” |
VUSXX vs SGOV after tax in all 50 states and D.C.
The yield left after federal and state income tax for a single filer aged 35 with $90,000 of wages and $50,000 in the fund for a year, at the yields above. “Keeps more” is the dollar difference over a year on $50,000. “Break-even” is the 30-day SEC yield SGOV would need to keep as much as VUSXX at 3.89% in that state, for this filer.
| State | VUSXX after tax | SGOV after tax | Keeps more, a year | Break-even SGOV yield | Why |
|---|---|---|---|---|---|
| Alabama | 3.14% | 2.98% | VUSXX, $80.44 | 3.94% | Exempts each fund's U.S. government share: VUSXX 100%, SGOV 95.14%. |
| Alaska | 3.09% | 2.94% | VUSXX, $74.81 | 3.93% | No state tax on dividends: only the yields matter. |
| Arizona | 3.09% | 2.94% | VUSXX, $77.10 | 3.93% | Exempts each fund's U.S. government share: VUSXX 100%, SGOV 95.14%. |
| Arkansas | 3.09% | 2.94% | VUSXX, $78.20 | 3.94% | Exempts each fund's U.S. government share: VUSXX 100%, SGOV 95.14%. |
| California | 3.09% | 2.93% | VUSXX, $83.34 | 3.95% | 50% test: both met it, so VUSXX 100% and SGOV 95.14% exempt. |
| Colorado | 3.09% | 2.94% | VUSXX, $78.84 | 3.94% | Exempts each fund's U.S. government share: VUSXX 100%, SGOV 95.14%. |
| Connecticut | 3.09% | 2.93% | VUSXX, $79.85 | 3.94% | 50% test: both met it, so VUSXX 100% and SGOV 95.14% exempt. |
| Delaware | 3.09% | 2.93% | VUSXX, $80.86 | 3.94% | Exempts each fund's U.S. government share: VUSXX 100%, SGOV 95.14%. |
| District of Columbia | 2.76% | 2.62% | VUSXX, $66.65 | 3.93% | No rule found for fund dividends: our calculator taxes both in full, so only the yields matter. |
| Florida | 3.09% | 2.94% | VUSXX, $74.81 | 3.93% | No state tax on dividends: only the yields matter. |
| Georgia | 3.09% | 2.93% | VUSXX, $79.38 | 3.94% | Exempts each fund's U.S. government share: VUSXX 100%, SGOV 95.14%. |
| Hawaii | 2.79% | 2.66% | VUSXX, $67.51 | 3.93% | No rule found for fund dividends: our calculator taxes both in full, so only the yields matter. |
| Idaho | 3.09% | 2.93% | VUSXX, $79.67 | 3.94% | Exempts each fund's U.S. government share: VUSXX 100%, SGOV 95.14%. |
| Illinois | 3.09% | 2.93% | VUSXX, $79.35 | 3.94% | Exempts each fund's U.S. government share: VUSXX 100%, SGOV 95.14%. |
| Indiana | 3.09% | 2.94% | VUSXX, $77.51 | 3.93% | Exempts each fund's U.S. government share: VUSXX 100%, SGOV 95.14%. |
| Iowa | 3.09% | 2.94% | VUSXX, $78.29 | 3.94% | Exempts each fund's U.S. government share: VUSXX 100%, SGOV 95.14%. |
| Kansas | 3.09% | 2.93% | VUSXX, $79.92 | 3.94% | Exempts each fund's U.S. government share: VUSXX 100%, SGOV 95.14%. |
| Kentucky | 2.95% | 2.81% | VUSXX, $71.45 | 3.93% | No rule found for fund dividends: our calculator taxes both in full, so only the yields matter. |
| Louisiana | 3.09% | 2.94% | VUSXX, $77.56 | 3.93% | Exempts each fund's U.S. government share: VUSXX 100%, SGOV 95.14%. |
| Maine | 3.09% | 2.93% | VUSXX, $81.36 | 3.94% | Exempts each fund's U.S. government share: VUSXX 100%, SGOV 95.14%. |
| Maryland | 3.09% | 2.93% | VUSXX, $79.16 | 3.94% | Exempts each fund's U.S. government share: VUSXX 100%, SGOV 95.14%. |
| Massachusetts | 3.09% | 2.93% | VUSXX, $79.39 | 3.94% | Exempts each fund's U.S. government share: VUSXX 100%, SGOV 95.14%. |
| Michigan | 3.09% | 2.94% | VUSXX, $78.70 | 3.94% | Exempts each fund's U.S. government share: VUSXX 100%, SGOV 95.14%. |
| Minnesota | 3.09% | 2.93% | VUSXX, $81.04 | 3.94% | Exempts each fund's U.S. government share: VUSXX 100%, SGOV 95.14%. |
| Mississippi | 3.09% | 2.94% | VUSXX, $78.48 | 3.94% | Exempts each fund's U.S. government share: VUSXX 100%, SGOV 95.14%. |
| Missouri | 3.10% | 2.94% | VUSXX, $79.26 | 3.94% | Exempts each fund's U.S. government share: VUSXX 100%, SGOV 95.14%. |
| Montana | 3.09% | 2.93% | VUSXX, $79.99 | 3.94% | Exempts each fund's U.S. government share: VUSXX 100%, SGOV 95.14%. |
| Nebraska | 3.09% | 2.93% | VUSXX, $78.98 | 3.94% | Exempts each fund's U.S. government share: VUSXX 100%, SGOV 95.14%. |
| Nevada | 3.09% | 2.94% | VUSXX, $74.81 | 3.93% | No state tax on dividends: only the yields matter. |
| New Hampshire | 3.09% | 2.94% | VUSXX, $74.81 | 3.93% | No state tax on dividends: only the yields matter. |
| New Jersey | 3.09% | 2.93% | VUSXX, $80.65 | 3.94% | Exempts each fund's U.S. government share: VUSXX 100%, SGOV 95.14%. |
| New Mexico | 3.09% | 2.93% | VUSXX, $79.30 | 3.94% | Exempts each fund's U.S. government share: VUSXX 100%, SGOV 95.14%. |
| New York | 3.09% | 2.93% | VUSXX, $80.22 | 3.94% | 50% test: both met it, so VUSXX 100% and SGOV 95.14% exempt. |
| North Carolina | 3.09% | 2.94% | VUSXX, $78.47 | 3.94% | Exempts each fund's U.S. government share: VUSXX 100%, SGOV 95.14%. |
| North Dakota | 3.09% | 2.94% | VUSXX, $76.60 | 3.93% | Exempts each fund's U.S. government share: VUSXX 100%, SGOV 95.14%. |
| Ohio | 3.09% | 2.94% | VUSXX, $77.33 | 3.93% | Exempts each fund's U.S. government share: VUSXX 100%, SGOV 95.14%. |
| Oklahoma | 3.09% | 2.94% | VUSXX, $78.93 | 3.94% | Exempts each fund's U.S. government share: VUSXX 100%, SGOV 95.14%. |
| Oregon | 3.09% | 2.93% | VUSXX, $82.83 | 3.95% | Exempts each fund's U.S. government share: VUSXX 100%, SGOV 95.14%. |
| Pennsylvania | 3.09% | 2.94% | VUSXX, $77.62 | 3.93% | Exempts each fund's U.S. government share: VUSXX 100%, SGOV 95.14%. Pennsylvania uses its own percentage, which can differ. |
| Rhode Island | 3.09% | 2.94% | VUSXX, $78.25 | 3.94% | Exempts each fund's U.S. government share: VUSXX 100%, SGOV 95.14%. |
| South Carolina | 3.04% | 2.88% | VUSXX, $78.54 | 3.94% | Exempts each fund's U.S. government share: VUSXX 100%, SGOV 95.14%. |
| South Dakota | 3.09% | 2.94% | VUSXX, $74.81 | 3.93% | No state tax on dividends: only the yields matter. |
| Tennessee | 3.09% | 2.94% | VUSXX, $74.81 | 3.93% | No state tax on dividends: only the yields matter. |
| Texas | 3.09% | 2.94% | VUSXX, $74.81 | 3.93% | No state tax on dividends: only the yields matter. |
| Utah | 3.09% | 2.93% | VUSXX, $80.08 | 3.94% | Exempts each fund's U.S. government share: VUSXX 100%, SGOV 95.14%. |
| Vermont | 3.09% | 2.93% | VUSXX, $80.86 | 3.94% | Exempts each fund's U.S. government share: VUSXX 100%, SGOV 95.14%. |
| Virginia | 3.09% | 2.93% | VUSXX, $80.08 | 3.94% | Exempts each fund's U.S. government share: VUSXX 100%, SGOV 95.14%. |
| Washington | 3.09% | 2.94% | VUSXX, $74.81 | 3.93% | No state tax on dividends: only the yields matter. |
| West Virginia | 3.09% | 2.93% | VUSXX, $79.01 | 3.94% | Exempts each fund's U.S. government share: VUSXX 100%, SGOV 95.14%. |
| Wisconsin | 3.09% | 2.93% | VUSXX, $80.25 | 3.94% | Exempts each fund's U.S. government share: VUSXX 100%, SGOV 95.14%. |
| Wyoming | 3.09% | 2.94% | VUSXX, $74.81 | 3.93% | No state tax on dividends: only the yields matter. |
VUSXX keeps more in all 50 states and D.C. at these yields: $74.81 a year where only the yields matter, up to $83.34 in California.
A money fund or an ETF: what changes besides tax
- Price. The SEC: “Most money market funds – including money market funds intended for retail investors and government money market funds – seek to keep their NAV at a stable $1.00 per share.” SGOV's net asset value was $100.58 on October 16, 2026, with a 52-week range of $100.27 to $100.73 on iShares' page.
- Selling. A money fund: “This means that investors can generally sell their shares back to a money market fund on any business day at the net asset value (NAV) per share.” An ETF: “ETF investors can trade their shares on the market at the market price whenever the market is open—minus any fees.” and “Under the new “T+1” settlement cycle, all applicable securities transactions from U.S. financial institutions will settle in one business day of their transaction date.”
- Where you can hold it. SGOV is bought through a brokerage; see how 15 brokerages handle a purchase of SGOV. VUSXX has a $3,000 minimum at Vanguard.
- Federal tax is the same kind. Both pay ordinary dividends, taxed federally in full. SGOV's summary prospectus: “The Fund intends to make distributions that may be taxable to you as ordinary income or capital gains”, unless held in an IRA or a similar account.
For a single filer aged 35 with $90,000 of wages and $50,000 in the fund for a year, the state tax on each fund's dividends is $8.53 for SGOV and $0.00 for VUSXX in California, $5.41 and $0.00 in New York. The largest gaps are in California, Oregon and Maine.
Quick answers
Is VUSXX better than SGOV?
For what is left after tax at these yields, VUSXX kept more in every state for our example, by $66.65 to $83.34 a year on $50,000; where dividends are not taxed the whole gap ($74.81) is the yield. The two yields move separately, so the result can change. SGOV can be held at other brokerages and needs no $3,000 minimum; VUSXX keeps a $1.00 price. Which suits your cash is your decision.
Are VUSXX and SGOV state tax exempt?
Mostly, from state tax only. 100% of VUSXX's 2025 dividends and 95.14% of SGOV's came from U.S. government obligations, and both funds met the 50% test, so the share is exempt in 39 states including California, Connecticut and New York. Nine states do not tax dividends. D.C., Hawaii and Kentucky have no rule we found for fund dividends. More on SGOV: Is SGOV state tax exempt?
VUSXX vs SGOV yield: why are the numbers not comparable?
Vanguard publishes a 7-day SEC yield for VUSXX (3.89% on October 16, 2026); iShares publishes a 30-day SEC yield for SGOV (3.74% on October 15, 2026). Both are after expenses, over different periods and compounded differently. Our calculator converts each before comparing.
What is the minimum for VUSXX and SGOV?
VUSXX: $3,000 at Vanguard. SGOV: one share at the market price (its net asset value was $100.58 on October 16, 2026), or a dollar amount where your brokerage sells fractional shares.
How fast can I get cash out of each?
SGOV trades while the market is open and settles one business day later. VUSXX is redeemed at Vanguard on business days at $1.00. How soon the money reaches your bank depends on the brokerage.
How often do they pay?
Monthly for both. iShares lists SGOV's distribution frequency as monthly; Vanguard lists VUSXX's distribution schedule as monthly, accruing daily.
How we built this page
- The yields, expense ratios, minimums and fund descriptions are the sponsors' own pages, read October 17, 2026. To keep the comparison fair, both yields are each fund company's latest figure.
- The 2025 shares and 50% test results are the sponsors' 2025 tax documents. Schwab's is a PDF on a server whose robots.txt closes it to automated reading; we read it on September 22, 2026 and quote nothing from it.
- Each state's rule comes from its own instructions, regulations or statutes, listed in our calculator's table of state rules. The after-tax figures come from the reference code that produces the calculator's published test cases.
- For twelve funds from five sponsors side by side, see state tax exempt money market funds; for Fidelity's core fund, Is SPAXX state tax exempt?; for SGOV in every state, Is SGOV state tax exempt?
Rechecks and changes
We will update the 2025 shares when the sponsors publish their 2026 documents, usually in January or February, and the yields every month.
- . First published.
Sources: Vanguard, 2025 U.S. government obligations information (January 2026); iShares, 2025 U.S. Government Source Income Information; Vanguard, VUSXX fund profile; iShares, SGOV product page; iShares, SGOV summary prospectus (PDF); SEC, Investor.gov: Money Market Funds; SEC, Investor.gov: Exchange-Traded Funds (ETFs); SEC, New “T+1” Settlement Cycle (March 27, 2024); each state's source is in our calculator's table of state rules. Dollars Ahead is not affiliated with Vanguard, iShares, BlackRock or any state. This page reports what the funds and states publish. It is not tax or investment advice.