Treasury bill ETF yield in October 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.
Top 8 based on yield (%):
| Yield | Ticker | ETF | Net Expense Ratio | Net Assets (B) | Investment Objective | Fund Inception |
|---|---|---|---|---|---|---|
| 5.16% | GBIL | Goldman Sachs Access Treasury 0-1 Year ETF → | 0.12% | $5.61 | FTSE US Treasury 0-1 Year Composite Select Index. | 6-Sep-16 |
| 5.08% | SGOV | iShares 0-3 Month Treasury Bond ETF → | 0.05% | $25.11 | US Treasury bonds with remaining maturities less than or equal to three months. | 26-May-20 |
| 4.99% | BIL | SPDR® Bloomberg 1-3 Month T-Bill ETF → | 0.14% | $33.61 | US Treasury Bills that have a remaining maturities between 1 and 3 months. | 25-May-07 |
| 4.75% | TBLL | Invesco Treasury Collateral ETF → | 0.08% | $1.86 | US Treasury Obligations with a maximum remaining term to maturity of 12 months. | 12-Jan-17 |
| 4.75% | SHV | iShares Short Treasury Bond ETF → | 0.15% | $19.26 | US Treasury bonds with remaining maturities one year or less. | 5-Jan-07 |
| 4.43% | TBIL | US Treasury 3 Month Bill ETF → | 0.15% | $4.21 | ICE BofA US 3-Month Treasury Bill Index (G0O1) | 9-Aug-22 |
| 4.25% | XBIL | US Treasury 6 Month Bill ETF → | 0.15% | $0.61 | ICE BofA US 6-Month Treasury Bill Index (G0O2) | 7-Mar-23 |
| 3.9% | OBIL | US Treasury 12 Month Bill ETF → | 0.15% | $0.25 | 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
