BILS
SPDR Series Trust - SPDR Bloomberg Barclays 3-12 Month T-Bill ETF
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BILS, SPDR 3-12 MONTH T-BILL ETF, when to sell
Parking Cash (Money Markets, Treasury Bills, Bond Funds, ETFs, etc.)
Question about negative returns on an SPDR T-Bill ETF
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I set aside money in BILS for taxes
Not in private credit in terms of $ there, but I relate in my head CLOs to private credit. - in terms of spreads / liquidity. I was just in PAAA, but that's basically zero now. I move up quality ladder as AAA CLOs are stilll technically lower rated from my understanding. Prudential PULS has some CLO exposure - but minimal. Ah yes, Treasury Direct. Their website is painful though. If I need something like that I use BILS State Street.
I use BIL, 1-3 month Ts. BILS is 3-12 month. Pays out monthly
Dude is literally giving the best option at the bottom of his post followed by "what should I do"? If you're unemployed and speculating your savings away after already having made decent profit you're asking for an ass kicking. OP sell your bag, buy SGOV or BILS and collect 3-4% on it while you find a job and work on your career.
A short term treasury etf like BIL, BILS, or SGOV will get you about 4.00%, so $20/month more per $100k than the money market fund you're in. But the NAV for those goes up about a penny a day during month, then they pull the div out of that and start over again. Instead of accruing a daily div like a money market. So when you sell, you'd have a short-term cap gain or loss you'd have to account for unless you sold at the same price you bought at. Divs in those are mostly state-tax exempt though, if you live in a state with its own income tax.
I mean tbh, the current top comment ends up basically being correct. I see you say you spend $11,000 a month. So you can just put everything in a treasury money market ETF like SGOV or BIL or BILS and you'll get 2% - 3% even when rates come down and you still won't run out of money even if you spend twice as much as you do now.
The high interest rate environment has completely decimated American's that rely on borrowing for cars, house, loans and credit cares vs those sitting on capital assets making a S-ton of Money just sleeping with 0 risk. The economy is only working for the very few while there a lot of cause and effect, lowering the interest rate will revive lending rate, improve certain areas of industry like housing, building supplies, and fundamentals. Instead of playing needless interest, those can be diverted to something else. Trump is quite good at responding to inflation and I rather we lower interest rates in early 2025 and toggle as needed. The $$ is way too strong as the value to spend money outside is just too tempting. Foreigners come to America and see the prices of restaurants and everything puke at how absurd it is. At the end of the day, you don't need to upgrade your iPhone evert 2 years or have 20 pairs of sneakers. Toggling purchases is easy, fixing the mortgage is hard. I hold a S\_ton of SGOV, BIL and BILS and a just feel sorry to the taxpayer like me that is paying interest to me instead of paying for government services. I'm really pissed 35% of the budget pays interest. I understand interest is a function of interest rate and amount outstanding, but interest rate is easily controlled. I am fortunate to be on the collecting side of the interest spectrum but that is only because I got the ball rolling in a much friendlier interest rate environment.
Divs from Treasury funds and ETFs are generally free from state taxes. The article you posted is paywalled. I'm not going to bother looking up treasury-based money market funds, but BIL, BILS, or SGOV would suit your purpose as ETFs. The ETFs you can sell any time during the day, they dont have any real volatility, and you can turn around and use the sale proceeds immediately to buy something else.
Stick with term if that's what you have it for, and put the rest of your investable money into a HYSA or a short-duration treasury note ETF like BIL, BILS, SGOV. You have the right instinct, whole life is a shitty investment product.
Oops, you meant BILS. Here’s that link from State Street (SSGA). https://www.ssga.com/us/en/intermediary/etfs/spdr-bloomberg-3-12-month-t-bill-etf-bils The 30 day yield is towards the bottom of the page. On mobile you’ll need to scroll down a ways.
I think you're looking at old data for that yield. BILS is 3-12 month treasuries. There are no treasuries paying 5.12% right now. For that duration you're going to get something between 4.0 and 4.3%. https://www.treasurydirect.gov/auctions/announcements-data-results/
Yahoo shows SGOV at 4.89% and BILS at 4.82%
https://testfol.io/?s=cjc9xiX5XBD Go to rolling metrics and set it to 12 month rolling return. BILS is exposed to short term risks that SGOV is not. The dropping value of bonds despite higher yield results in a lower net wealth creation.
Not really. They’re both for short term bills. BILS is longer. ~3 vs ~12 months I believe
The source you got your numbers from must be looking at past distributions prior to \~September 2024. You need to look forward and with current data. SGOV Yield to maturity is 4.27% Weighted average maturity 0.11 yrs. [https://www.ishares.com/us/products/314116/ishares-0-3-month-treasury-bond-etf](https://www.ishares.com/us/products/314116/ishares-0-3-month-treasury-bond-etf) BILS Yield to maturity is 4.24% Weighted average maturity 0.34 [https://www.ssga.com/us/en/intermediary/etfs/spdr-bloomberg-3-12-month-t-bill-etf-bils](https://www.ssga.com/us/en/intermediary/etfs/spdr-bloomberg-3-12-month-t-bill-etf-bils) Unless you're playing with a whole lot of money these two are functionally equivalent though SGOV is slightly better due to it's lower expense ratio.
I can sure you BILS isn’t yielding 5.12%
Also the apples to apples forward looking metric is "30 day SEC yield" * BILS - 4.11% * SGOV - 4.17% So BILS is not higher. Also BILS is subject to more interest rate risk. If rates go up you will end up with a greater loss of principal.
They are different products with different duration. SGOV = 0-3 months BILS = 3-12 months Because of BILS longer duration, you are exposed more the interest rate risk. It depends on what investing use-case you have.
keep sitting on the cash pile. if the dollar gets to parity with the euro im gonna make the whole thing XSX7 or VXUS if that drops otherwise its cash sitting in BILS for me.
I have a 10k in Five years. XFIV and PIMCO STPZ 1-5 year tips more. avg duration is 3 years!! doh! longer then I thought! dumping that tomorrow. lighten up PULS too...that's ultra-short, but mix of stuff in there. moving to MMF. Lots of $$ in BILS. 3-12 month treasuries. i think under 2 years is generally ok. @ 3 months - no worries. going to schwab mmf just to be safer for stuff i sell.
buy BILS/SGOV. this is a good time to invest.
JPST has outperformed PULS a little. BILS is my largest holding. PULS was/still #2...but reducing it in favor of JPST. During COVID it's max drawdown was 1%? JPST. PULS was 3%. PULS has more private capital/equity holdings from what I gleaned - like ARES, etc... still short term loans...but can underperform I'm learning. I'm sticking more in SWVXX. But drawing up a list of things to buy soon...things I used to own.
put (most of) it @ 4% MMF or short term bond funds BILS or PULS can work, and invest a small portion of it....learn from the mistakes and successes. Invest XX% (the small portion) in whatever you want. Study your emotions and what you are comfortable with. That xx% - put in whatever investment you want. How do you feel when it goes up 5%, down 10%, etc... How do you feel when the market is up bigly for a day, but you lag? How about when it goes down 5% and you lose next to nothing or actually gain. How does that make you feel? Everyone else just gives std "advice" which may not be applicable for you. Master emotions first and gain knowledge. With right knowledge and experience, one can make $$ in any kind of market.
buy BILS/SGOV. that will pull you out of the market.
risk free in BILS and SGOV. no point DCAing until there is good news starting to appear.
put your money into SGOV and BILS. once berkshire decides to invest in the market again switch it over to VOO.
SGOV, BIL, BILS Short term Treasury Note ETFs. They all go up about a penny a day and then pay a div at the beginning of each month. Look at a multi-month chart of any of them to see how that works. If you're at Schwab, when the time comes and you want to plunge, you can sell whatever number of shares gets you the amount of cash you need and then instantly turn around and buy something else with the proceeds If you put it in a money market mutual fund, those don't get officially priced until the end of the day, so you'd have to wait until the next day to do anything with the money.
yes but what was your point in posting the message ? the client basically said musk and trump are idiots. we all know that. you replied with your risk tolerance is blah blah blah based on your numbers and you can do whatever. disclaimer: i dont care. which is a typical wall street response. i mean, its ok i guess ? it addresses nothing of his concerns nor does it tell him to dump everything into BILS/SGOV to mitigate a market crash. so \*shrug\* ?
Definitely take $14k and max out your 2024 and 2025 Roth contribs. You can park the money in a short-term Treasury ETF like BIL or BILS to park the money while you wait and get around 4.5% although that will go down if/when interest rates do. Buy index funds or individual stocks when you think the time is right.
USFR, BILS for anything with a potential spend or invest within 1-12M, but usually brokerages offer a money market fund at 0.25% below what USFR yields
drop everything into BILS - you will get 5% which is guaranteed by the US taxpayer. and the proceeds are enough to live like a king.
buy BILS or SGOV instead. much less risk.
yes. BILS if you need some cashflow.
i would put it in BILS, wait for the SPY drop then go all in on SPY.
Not sure if it's a language barrier - and I don't speak Portuguese. Are you asking about how to invest in US treasury bonds? It looks like you have access to US ETFs like SGOV. That is effectively the same thing for ultra-short duration treasuries. Are you looking for longer duration treasury funds? If so - what duration or average maturity are you seeking? There are other treasury ETFs that you can use depending on what you are seeking such as BILS (3-12 month), SHY (1-3 year), IEI (3-7year), IEF (7-10 year), TLT (10+ year)
Park it in BILS. Right now BILS is getting 5.12% APY and though it will drop, it won't drop much.
So, T-Bills specifically refer to a type of US Treasury. Anything in maturity less than and including one year is a T-Bill. BIL is 1-3 months maturity, meaning approximately 1-3 months after a rate cut, you'll start to get less yield. (It's more complex, but I am generalising) Some, like BILS and GBIL, hold slightly longer yielding T-Bills, so you will have a bit of a more extended period getting a higher yield. You're a bit late to the party, so to speak; t-bills will go down in yield with a very short lag as the Fed cuts rates. This doesn't mean it's the wrong place to park some cash. If you want to get a note (2-10-year maturity), you can do so, but the yield is lower than 5%. The 2-year is currently yielding just 4%, so there may not be as much incentive for you to hold that. For yields, I wouldn't recommend going past 2-year maturity, currently, just because the yields are lower and it's much more of a speculative bet on the economy. Yields are yearly, so if it's a 5.3% yield, you'll get 1/12 of that each month paid as dividends. This would be for BIL but may differ for the other tickers I mentioned. You can also Google US treasuries ETFs. It wasn't a top result, but I looked at the "ETF Database" (etfdb.com) to find the other two alternative ETFs mentioned above.
BILS and CASH are definitely mitigating a lot of damage for me
just buy BILS. 5% guaranteed or $12k.
BILS. Dividend currently at 5.12%, I believe.
I work at a hospital but not in a medical capacity. I don't make much and I'm pretty risk averse so half of my $20k portfolio is in BILS earning 5% in dividends and the other $10k is in VOO, VOE, SCHD, and VT. I also have about $12k in a HYSA earning 5.30% APY.
right now im all in on BILS which is cheap money waiting for the next crash.
take all your money and spend 1/3 on SPY, QQQ and BILS. now youre profitable.
ive dumped in BILS mostly. i get 5% pretty much guaranteed returns.
just buy BILS and get your 5% while you wait for the market crash. then buy buy buy baby.
thats gambling. you got lucky. now walk away and dump everything in BILS.
sell everything start a DCA on Spy for the next 48 months and check it again in 15 years. that’s the easiest way and I am in Your position also… Or go cash buy 6M BILS till the shock on TLT will come (inflation up) then go all in on TLT
Thank you so much for posting this solution. I was in the same situation with BILS and SGOV in my taxable account. Everything you provided with links made perfect sense.
>BILS Why is this better than money market mutual fund ?
I just wanted to take advantage of a bit longer term t-bills by using BILS. So SGOV is 0-3 month duration treasury bills and BILS is 3-12 months. There really isn't much difference in the payout, but SGOV is going to be more sensitive to interest rate changes (faster to increase dividends if rates go up and faster to decrease dividends if rates go down) since it has those very short term t-bills in it.
Thank you so much, that's extraordinarily helpful. Can I ask what the benefit of investing in both SGOV and BILS is?
No worries at all. The fund provider will tell your brokerage what percentage of the dividends were exempt from state/local taxes, it should be all of them for something like SGOV. For t-bill ETFs, I've just chucked my emergency fund into them and left it alone since then. I use SGOV and BILS and just let the dividends reinvest. No need to sell and rebuy since when the big drop happens is because the dividend is announced and then paid out. You won't be losing money on SGOV, just getting the monthly dividend.
BIL, BILS, USFR, SPAXX <- T bill ETFs/ultra short duration is yielding 5%. Easy place to park cash and more liquid than a certificate of deposit and better yield than banks I think USFR has a rolling hedge strategy to keep duration at 0 otherwise the others are very conservative money market funds basically. You can at least sit around and clip a coupon until you figure out what you want to do
BER GOD KNOWS ALL BER GOD SAYS NO WRONG BILS ANUS WILL BURN 
150K is a teeny tiny bit of money. i made 1.2 million just YOLOing into RE at the correct time. 150K is barely 15 trades. i do that in a week. so just do 15 trade. F all the CD nonsense. buy SPY, VOO, BILS and other junk and get those out of the way.
Thank you everyone for taking the time to respond. Great suggestions here, and instead of commenting on each, I am writing a general response to your suggestions, as to why I asked about what are my options: ​ ​ It is intimidating, because of how many options there are. Honestly, just my own demons to fight. Vanguard, Fideltiy, Schwab? how do I compare? or are they all the same and just pick one? Then, there are bonds, etfs, money markets, etc. In other words, I now understand t-bills, so how do I find a replica of t-bills - track yield of t-bills, principal is secure, can be cashed in around 5 days. and then, furthermore, am I limiting myself by focusing on t-bills? are there other options where principal is secure, tax exempt, and yield is better? A quick search gave me a long list: FDLXX FHQFX VFISX VUSXX SGOV TBLL BIL, BILS Information overload!
SGOV, BIL invest in t-bills with very short duration. As ETF’s they settle T+2. I have TTTXX through Merrill and the cash balance is available for transfer T+1. Also have VUSXX in a JPM account, and the cash balance is available T+2. BILS and SHV have longer effective durations around 3-4 months.
This is a good strategy. I do something similar except I just use t-bill ETFs like SGOV and BILS for easier liquidity.
Seriously. Just YOLO into TBIL or BILS.
There's pretty much zero risk with these short term treasury products and they are state tax exempt to boot. You'll get a higher yield versus an HYSA. Just pick one (I'd recommend SGOV, BIL, BILS, TFLO, or USFR) and be done with it. You'll get ~5.5% interest each month from any of those and they are easy to buy and sell should you need to.
Well, longterm yields right now aren’t 5.2%, so if Powell is expecting that to be where it tops out… And remember, yield going up results in price *depreciation*, not appreciation. Fwiw, t bills are at 5.2% right now. You could join me in buying an instrument like BIL or BILS, and then you’d be more immune to price changes and able to calculate your expected returns from the yield alone more accurately.
I might be wrong, but here’s how I see it: Buying a treasury ETF can be dangerous because, you’re exposed to price in a way that you aren’t if you buy the bond straight up. Caveat: this assumes you expect to hold the bond to maturity. Put another way, when the yield goes up, and the price goes down, if you buy the bond, it doesn’t matter to you, the yield is what it was when you bought it. In a bond etf though, you’re affected by that price drop. On a long enough time scale, it shouldn’t matter. If a bond price lowers, its yield goes up, and so your dividend gets bigger. But, there’s a catch, and that catch is the length of the bonds in the etf. If you buy an etf that’s mostly 5 and 10 year bonds, and the prices start to drop, you end up getting dividends from lower yield bonds, which means that can’t keep up with how much the new bonds’ price is causing the etf price to drop. It takes time to mature out the old, lower yield bonds. So there’s a relaxation time between when the bond price drops and when the dividends compensate. In that lag period, you can lose money. I personally get around this by buying BILS, because the lag period is so small that it’s not as consequential. If prices drop, I just have to wait a month or two before the entire fund has churned over into t bills at the newer price/yield. Because of this, the price is very stable, and it’s very easy to keep all your principal while getting dividends that reflect that actual, current average t bill yield.
Diversify your dividend options I know there is BIL or BILS. I dont like cds because they lock your funds. Also some higher yield jepq and jepi
HYSA. I use Marcus which is at 4.3% pm Me if you want a referral link. You’ll get an extra 1% for 3 months. So would be at 5.3% and if you get a few friends or family to sign up that 3 months extends. When I signed up I had 6 months of the extra 1% bonus was awesome. Otherwise short term treasuries like BILS are paying 5% or a money market fund. That’s basically a cap rate for real estate. Imo real estate is a disaster at the moment
Which do you recommend between BILS and SGOV?
I saw RH gold's 0% margin on first $1000 too. I don't have an RH account but thought it would be simple enough to at least just use that $1000 and put it into short term t-bill funds like SGOV or BILS and have an easy way to get 5% on any extra $1000.
BILS currently paying 5% ish. I'd DCA into SPY over next 12 months, selling BILS as you go.
To add to this, buying T-Bills is super easy through your brokerage but you can also buy an ETF to do the work for you to make it even easier. Some good short term T-bill ETFs are: SGOV, BIL, BILS.
Maybe it's petty, but this is the reason I switched to just using ETFs to manage my t-bills. I got frustrated that my 8 week ladder actually needed 9 rollover purchases. I just buy SGOV and BILS now.
$BILS. dry powder for better opportunities down the road.
I have no idea what SPAXX is. I don't see a ticker for it so I'm not sure what you are talking about. Treasuries, I have bought a few short term treasuries (3 & 6 months) but the smallest amount available for purchase was $25,000. I don't trade them often so not sure if you can get in for less money but at least with the time period I was looking at, I could not. My intent with them is to hold until expiration so I'm not worried about selling them. BIL / BILS are nice and simple, have a ticker for easy buy and sell and you can buy whatever amount you want and sell easily if you need to. For long term or larger amounts, I would probably buy treasuries directly but for short duration or lower dollar amounts, they work well. Difference between them is BIL is based on 1-3 month treasuries and BILS is based on 3-12 month treasuries and pays slightly more.
- Are tbills bought through a brokerage still tax exempt? - Since indexes like BILS and even partially spaxx are made of up of tbills, wouldn’t they also be mostly untaxed? - The disadvantage to those is slightly lower rates and paying expense ratios?
Can you help me understand the differences of BILS vs spaxx vs tbill? - spaxx seems to have a highish expense ratio and you’re probably taxed partially on payments since it’s not just US bonds. Rate slightly lags tbill. Also very liquid. - BILS has a lower expense ratio than spaxx and similar yield to tbill? It’s all tbills so payments are untaxed federally? Also very liquid, risk slight loss of rates fall? - tbills have highest rate and are untaxed federally. No expense ratio. Have to sell on 3rd market if need money. Takes more time to manage ongoing ladders Is this kind of sum it up?
BIL or BILS for the amount of cash you have. No need to roll or make other changes. Simple. The share price does drop a little bit when dividends are paid but come back up over the month.
> BIL - 4.17% 30 day SEC yield > > BILS - 4.84% 30 day SEC yield Are those paid out as a dividend? What does SEC yield mean?
> What did you mean when you said “You might “lose” money in the short term but as long as you keep your duration short”? I mean that bond prices move inversely to the interest they pay. If interest rates keep rising, then the value of the bond will go down in response. This also affects T-Bills on the secondary market, but you can always hold those to maturity. Most ETFs don't mature, they just re-purchase when a bond matures. That means if you need the cash from an ETF you must sell it. You don't have the option of "waiting for it to mature". > Why or how would I keep my duration short? The price of a bond moves inversely to the prevailing interest rate that bond pays. Shorter duration bonds decrease in price less in response to interest rate increases than longer duration ones. You would check the duration of the bonds the ETF holds. BIL targets 1-3 month T-Bills. BILS keeps 3-12 month T-Bills. I don't really want to get into the math of it all, but if you hold something like BIL for 3 months then you should not end up with less than you started. Same thing for holding BILS for at least 12 months. If you hold either than less than their longest duration then there's a chance you would be selling at a loss.
Yes, like any other ETF. There's also USFR, SGOV, CLTL, BIL, BILS, ...
Those are great funds. Others in the same vein: USFR, BIL, CLTL, and BILS (a tad longer term).
I think spamming the occasional $BILS will help them out lmao... (man I'm glad I sold that at $104 because it's at $91 now)