US Treasury 3 Month Bill ETF

TBIL

Market cap $6.34B

The year is 2026, and the market (and macro) environment seem to be exactly the opposite of what is required for stress-free income. For prudent income investors, considering taking some risk off the table might be a good idea. But in most cases it comes at the cost of reduced income potential.

F/m US Treasury 3 Month Bill ETF (TBIL) offers direct, low-risk exposure to short-term US Treasury yields, closely tracking the 3-month bill rate. TBIL's yield is highly sensitive to Federal Reserve rate changes, with recent cuts reducing its carry and dividend growth rate. The ETF's 0.15% expense ratio is higher than peers like SGOV (0.09%) and VBIL (0.07%), impacting net returns.

Yield for traditional income sources have started to compress. For income-oriented investors, who seek to build a reliable passive income machine it causes a real headache. To hit a certain target income figure, investors have to assume either higher risks, extend time horizon or save/invest more capital.

Utah-based wealth manager Coign Capital added 60,906 shares of TBIL for an estimated $3 million in the third quarter. The transaction value represented 1.7% of 13F reportable AUM as of quarter-end.

The F/m US Treasury 3 Month Bill ETF offers a simple, highly liquid way to park cash and earn a yield above checking accounts. TBIL is nearly identical to other short-term Treasury ETFs, with low duration risk, predictable price, and monthly dividends. TBIL is best used as a cash substitute for personal expenses, business cash cycles, or holding funds between investments.

The chances for a notable correction are certainly not low. Going into richly priced and growth-focused names might not be the smartest idea. Yet, sitting on sidelines might come with some serious opportunity costs.

F/m Investments has added a new ETF to its roster, with the full debut of its new ultrashort muni bond ETF, listed on the Nasdaq. The shop, which announced the fund as the first muni bond ETF to offer an ultrashort approach, officially launched ZMUN, the Ultrashort Municipal Bond ETF, on Wednesday.

The US Treasury 3 Month Bill ETF (TBIL) offers automated exposure to short-term T-Bills, closely tracking the front end of the yield curve. Following the Fed's recent 25 bps rate cut, TBIL's yield will decrease, mirroring future Fed Funds rate movements almost one-for-one. TBIL remains a reliable cash parking vehicle, but investors seeking protection from further rate cuts should consider longer-duration funds like SHY or NEAR.

F/m US Treasury 3 Month Bill ETF prospects seem sound. Lower implied rates and issuance volume present headwinds, but forward-looking real yields are currently very attractive. TBIL offers strong collateral and liquidity benefits, making it a practical choice in the current environment. Barbell strategies and leveraged portfolios would benefit from TBIL for the foreseeable future. Key fund metrics support the bullish case, though duration risk and policy uncertainty remain concerns.

TBIL offers ultrashort US Treasury exposure, closely tied to Fed rate policy, making it sensitive to upcoming interest rate decisions. Current economic data is mixed, with strong GDP but rising inflation and weak job growth, complicating the Fed's rate outlook. Given high odds of a September 2025 rate cut, I suggest gradually rotating from ultrashort to intermediate- and long-term Treasuries for better returns.