SGOV’s Short Duration Limits Rate-Hike Losses as 30-Day SEC Yield Hits 3.79%

The comparison to TLT is the real story here: it shows that duration, not credit risk, was the dominant driver of Treasury returns during the rate-hike cycle, and SGOV's near-zero duration is what insulated it. The 30-day SEC yield sitting above the trailing distribution rate suggests the fund's payout is still catching up to current bill yields, a gap worth watching as it converges. Whether that spread narrows through higher distributions or falling yields is the open question, and it matters most for cash-like allocations where the yield, not the price, is the return.