Treasury bill ETF yield in June 2024

Treasury Bills or T-Bills are short-term securities with maturity of one year or less. Bills are sold at face value or at a discount from the face value. When they mature, you're paid the face value.

Treasury bill ETF yield in June 2024
Photo by tommao wang / Unsplash

Top 8 based on yield (%):

Yield Ticker ETF Net Expense Ratio Net Assets (B) Investment Objective Fund Inception
5.27% TBLL Invesco Treasury Collateral ETF → 0.08% $1.71 US Treasury Obligations with a maximum remaining term to maturity of 12 months. 12-Jan-17
5.23% SGOV iShares 0-3 Month Treasury Bond ETF → 0.05% $21.80 US Treasury bonds with remaining maturities less than or equal to three months. 26-May-20
5.21% BIL SPDR® Bloomberg 1-3 Month T-Bill ETF → 0.14% $32.07 US Treasury Bills that have a remaining maturities between 1 and 3 months. 25-May-07
5.17% XBIL US Treasury 6 Month Bill ETF → 0.15% $0.55 ICE BofA US 6-Month Treasury Bill Index (G0O2) 7-Mar-23
5.16% GBIL Goldman Sachs Access Treasury 0-1 Year ETF → 0.12% $5.26 FTSE US Treasury 0-1 Year Composite Select Index. 6-Sep-16
5.13% SHV iShares Short Treasury Bond ETF → 0.15% $19.02 US Treasury bonds with remaining maturities one year or less. 5-Jan-07
5.12% TBIL US Treasury 3 Month Bill ETF → 0.15% $3.58 ICE BofA US 3-Month Treasury Bill Index (G0O1) 9-Aug-22
5.05% OBIL US Treasury 12 Month Bill ETF → 0.15% $0.21 ICE BofA US 12-Month Treasury Bill Index (G0O3) 15-Nov-22

What is a Treasury Bill?

Treasury Bills or T-Bills are short-term securities with maturity of one year or less. Bills are sold at face value or at a discount from the face value. When they mature, you're paid the face value.

For example, on February 23, 2023 the Department of Treasury issued a 364-Day Bill at a discounted price of $95.151722 for a $100 face value bill. At maturity, an investor with ten T-Bills will receive $1,000, or 5.046% yield.

T-Bills are backed by the full faith and credit of the U.S. government, and hence have no liquidity, credit, or default risk, unless the government defaults. The three-month T-Bill is used as a proxy for the “risk-free” rate and considered a “cash-equivalent”.

To purchase directly from the Treasury go to https://www.treasurydirect.gov/marketable-securities/treasury-bills/, alternatively consider investing in a T-Bill ETF.

What is a T-Bill ETF?

ETF or Exchange Traded Fund is a pooled investment fund that trades on a stock exchange, the T-Bill ETFs track the investment results of an index composed of U.S. Treasury bills with remaining maturities less than one year.

T-Bill ETFs, for a small fee, buy, hold, and roll over different maturities of T-Bills to provide you with the yields, while eliminating the administrative burden.

To purchase an ETF you will need a brokerage account, see latest rankings at https://www.maxint.com/post/best-brokerage-accounts

Treasury Bills vs. Notes vs. Bonds

Bills Notes Bonds
Yield 5.400% - 4W; 5.433% - 8W; 5.446% - 13W; 5.527% - 17W; 5.494% - 26W; 5.428% - 52W 4.625% - 3Y; 4.875% - 5Y; 4.875% - 7Y; 3.875% - 10Y 4.375% - 20Y; 4.125% - 30Y
Maturity 4, 8, 13, 17, 26, and 52 weeks 2, 3, 5, 7, or 10 years 20 or 30 years
Interest rate Fixed at auction. Difference between what you paid and the face value you get when the bill matures. The rate is fixed at auction. It doesn’t change over the life of the note. It is never less than 0.125% The rate is fixed at auction. It does not vary over the life of the bond. It is never less than 0.125%
Interest paid At maturity Every six months until maturity Every six months until maturity
Minimum purchase $100 $100 $100
Maximum purchase $10 million (non-competitive bid); 35% of offering amount (competitive bid) $10 million (non-competitive bid); 35% of offering amount (competitive bid) $10 million (non-competitive bid); 35% of offering amount (competitive bid)
Auction frequency Every four weeks for 52-week bills; Weekly for 4, 8, 13, 17, 26-week bills 2, 3, 5, and 7-year notes: Monthly; 10-year notes: Feb., May, Aug., Nov. Reopenings of 10-year notes: 8 times/year 4 per year (original issue); 8 per year (reopenings)
Taxes Federal tax due on interest earned. No state or local taxes. Federal tax due each year on interest earned. No state or local taxes. Federal tax due each year on interest earned. No state or local taxes.

Disclosure: INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE