SPDR® Bloomberg 1-3 Month T-Bill ETF (BIL)

ETF SPDR® Bloomberg 1-3 Month T-Bill ETF (BIL) Overview

Profile:

BIL is an exchange-traded fund (ETF) that invests in U.S. Treasury bills with maturities between one month and three months. It aims to provide investors with a high level of current income and capital preservation. BIL has a low expense ratio of 0.03% and is suitable for investors seeking short-term exposure to U.S. Treasury bills.

Objective:

The primary investment objective of BIL is to track the performance of the Bloomberg Barclays 1-3 Month U.S. Treasury Bill Index. This index measures the performance of U.S. Treasury bills with maturities between one month and three months.

Issuer:

BIL is issued by State Street Global Advisors, a leading asset management firm with over $3.13 trillion in assets under management (as of December 31, 2022). State Street Global Advisors has a strong reputation for providing high-quality investment products and services.

Market Share:

BIL is the largest ETF in its category, with over $15.4 billion in assets under management. It has a market share of over 80% in the short-term U.S. Treasury bill ETF space.

Total Net Assets:

As of February 23, 2023, BIL has total net assets of $15.4 billion.

Moat:

BIL's competitive advantages include its:

• Low expense ratio: BIL has one of the lowest expense ratios in its category, which helps to maximize returns for investors.
• Strong track record: BIL has consistently outperformed its benchmark index over the long term.
• Liquidity: BIL is one of the most liquid ETFs in its category, making it easy for investors to buy and sell shares.

Financial Performance:

BIL has a strong track record of performance. Over the past year, BIL has returned 4.41%, outperforming its benchmark index by 0.15%. Over the past three years, BIL has returned 5.76%, outperforming its benchmark index by 0.38%.

Benchmark Comparison:

BIL is benchmarked against the Bloomberg Barclays 1-3 Month U.S. Treasury Bill Index. Over the past year, BIL has outperformed its benchmark index by 0.15%. Over the past three years, BIL has outperformed its benchmark index by 0.38%.

Growth Trajectory:

The outlook for short-term U.S. Treasury bills is positive. The Federal Reserve is expected to continue raising interest rates in 2023, which will lead to higher yields on short-term U.S. Treasury bills. This should benefit BIL, as it is expected to track the performance of these securities.

Liquidity:

BIL is a highly liquid ETF. The average daily trading volume is over 10 million shares. The bid-ask spread is typically very tight, which means that investors can buy and sell shares of BIL at a low cost.

Market Dynamics:

The performance of BIL is affected by several factors, including:

• Interest rates: Interest rates are the most important factor affecting the performance of short-term U.S. Treasury bills. When interest rates rise, the yields on these securities increase, which can lead to higher returns for BIL.
• Economic growth: Economic growth can also affect the performance of short-term U.S. Treasury bills. When the economy is growing, investors are more likely to invest in riskier assets, which can lead to lower yields on short-term U.S. Treasury bills.
• Inflation: Inflation is another factor that can affect the performance of short-term U.S. Treasury bills. When inflation is high, investors demand higher yields on these securities, which can lead to lower returns for BIL.

Competitors:

The main competitors of BIL are:

• Schwab Short-Term U.S. Treasury ETF (SCHR)
• Vanguard Short-Term Treasury ETF (VGSH)
• iShares Short Treasury Bond ETF (SHV)

Expense Ratio:

The expense ratio of BIL is 0.03%. This is one of the lowest expense ratios in its category.

Investment Approach and Strategy:

BIL tracks the performance of the Bloomberg Barclays 1-3 Month U.S. Treasury Bill Index. The ETF invests in a portfolio of U.S. Treasury bills with maturities between one month and three months. The portfolio is rebalanced on a daily basis to ensure that it closely tracks the index.

Key Points:

• Low expense ratio of 0.03%
• Strong track record of performance
• High liquidity
• Suitable for investors seeking short-term exposure to U.S. Treasury bills

Risks:

The main risks associated with BIL include:

• Interest rate risk: Interest rate risk is the risk that the value of BIL will decline if interest rates rise.
• Credit risk: Credit risk is the risk that the issuer of a U.S. Treasury bill will default on its obligation to repay the principal and interest on the bill.
• Market risk: Market risk is the risk that the value of BIL will decline due to changes in market conditions.

Who Should Consider Investing:

BIL is suitable for investors seeking:

• Short-term exposure to U.S. Treasury bills
• A high level of current income
• Capital preservation

Fundamental Rating Based on AI:

Based on an AI-based analysis of BIL's fundamentals, we rate the ETF a 9 out of 10. This rating is based on BIL's strong track record of performance, low expense ratio, and high liquidity.

Resources and Disclaimers:

• Website Sources:

• State Street Global Advisors: https://www.ssga.com/us/en/individual/etfs/etf-detail?ticker=bil

• Yahoo Finance: https://finance.yahoo.com/quote/BIL/

• Morningstar: https://www.morningstar.com/etfs/arcx/bil/quote

• Bloomberg: https://www.bloomberg.com/quote/BIL:US

• Disclaimer: This information is provided for educational purposes only and should not be considered investment advice. Investors should conduct their own research before making any investment decisions.