How Does the SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) Dividend Yield Stack Up Against Other Short-Term Bond Funds to Date
Bil - Market Position
| Ticker Symbol | Product Type | Asset Class | Strategy | Payment Frequency | Geographic Focus | Expense Ratio | Sponsor |
|---|---|---|---|---|---|---|---|
| BIL | ETF | Fixed Income Bond ETF | Cash Management | Monthly | United States | 0.1355% | State Street |
BIL Overview - The SPDR Bloomberg 1-3 Month T-Bill ETF
The SPDR Bloomberg 1-3 Month T-Bill ETF, ticker symbol BIL, is an exchange-traded fund (ETF) that seeks to provide investment results that correspond generally to the price and yield performance of the Bloomberg Barclays 1-3 Month U.S. Treasury Bill Index. This index includes all publicly issued zero-coupon U.S. Treasury Bills with a remaining maturity between one and three months, providing exposure to the short-term U.S. government bond market.
As a short-term bond ETF, BIL offers investors a relatively low-risk investment option with the potential for modest returns. The fund's primary objective is to maintain a high degree of liquidity while minimizing credit risk, making it an attractive choice for investors seeking a cash management solution or a safe haven during times of market volatility.
BIL is sponsored by State Street Global Advisors (SSGA), one of the world's largest asset managers. SSGA is known for its extensive range of ETFs, including the popular SPDR S&P 500 ETF Trust (SPY). With its focus on short-term U.S. Treasury Bills, BIL differs from many other bond ETFs that invest in longer-term securities or corporate bonds, which may carry higher yields but also greater credit risk and interest rate sensitivity.
BIL - Price / Yield
BIL - Holdings, Asset Allocation, and Grade
The SPDR® Bloomberg 1-3 Month T-Bill ETF's holdings are substantially composed of U.S. Treasury Bills that have a remaining maturity between 1 and 3 months, expressed as a percentage of the fund's total assets. The index is market capitalization-weighted, and the securities are rated investment-grade. As of Mar 2024, BIL's total assets under management (AUM) stand at $4.67 billion.
Unlike dividend stocks that make regular payments to shareholders, BIL's dividend information is based on the interest earned from its underlying short-term Treasury holdings. BIL's dividend yield and payout ratio are determined by prevailing market conditions and the performance of the securities in its portfolio.
Top 5 Holdings
| Name | Market Value | ISIN | Weight |
|---|---|---|---|
| TREASURY BILL 04/24 | 2,936,311,036.84 | US912797JL25 | 9.30% |
| TREASURY BILL 04/24 | 2,689,047,503.29 | US912797HF74 | 8.52% |
| TREASURY BILL 04/24 | 2,667,680,616.70 | US912797GZ48 | 8.45% |
| TREASURY BILL 05/24 | 2,215,216,233.33 | US912797FH58 | 7.02% |
| TREASURY BILL 04/24 | 2,151,364,177.30 | US912796CX52 | 6.81% |
Asset Allocation
BIL's asset allocation is 100% invested in U.S. Treasury Bills with maturities between one and three months, expressed as a percentage of the fund's total assets. This allocation provides investors with exposure to the short-term end of the U.S. Treasury yield curve, which is less sensitive to interest rate fluctuations compared to longer-dated securities. By focusing exclusively on these short-term instruments, BIL maintains a high degree of liquidity and minimal credit risk, making it an attractive option for investors seeking capital preservation and stable income.
Security Grade
Due to the nature of its holdings, BIL's portfolio is considered to be of the highest credit quality. The U.S. Treasury Bills held by the fund are rated investment-grade, with the index being market capitalization-weighted. This top-tier credit rating indicates that BIL's holdings carry minimal default risk, providing investors with a safe haven during times of market volatility. Investors can find the latest information on BIL's holdings, dividend history, and performance metrics by visiting the fund's summary page on the SPDR website or financial platforms like TipRanks.
Dividend Yield and Distribution History
| Section | Details |
|---|---|
BIL Dividend Data |
The SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) pays monthly dividends. The most recent ex-dividend date was on March 1, 2024, with a dividend payment of $0.1234 per share on March 7, 2024. |
BIL Dividend Yield |
As of March 23, 2024, the 30-day SEC yield for BIL is 4.67%. This means that for every $100 invested in the fund, investors would receive $4.67 in dividends per year, assuming the yield remains constant. |
BIL Dividend History |
BIL has a history of paying monthly dividends. The dividend payments fluctuate based on the interest rates of the underlying 1-3 month U.S. Treasury Bills held by the fund. |
BIL Dividend Payout & Dividend Payout Ratio |
As an ETF, BIL does not have a dividend payout ratio like individual stocks. The fund distributes nearly all of its net investment income (NII) to shareholders in the form of monthly dividends, after deducting expenses. |
BIL Dividend Growth |
BIL's dividend payments are dependent on the interest rates of the underlying 1-3 month U.S. Treasury Bills. As interest rates change, the fund's dividend payments will adjust accordingly. The fund does not aim for consistent dividend growth like some individual stocks. |
BIL Dividend Stability |
While BIL's dividend payments may fluctuate based on interest rate changes, the fund provides a relatively stable income stream due to its investments in short-term, high-quality U.S. Treasury Bills. However, the dividend payments are not guaranteed and may be affected by changes in market conditions. |
BIL - Chart
Bil - Comparative Analysis
Let's compare BIL with prominent competitors, focusing on key aspects like performance, fees, and strategy: (as of Mar 2024)
| BIL | SHV | GBIL | |
|---|---|---|---|
| Investment Focus | 1-3 Month U.S. Treasury Bills | 1-12 Month U.S. Treasury Bills | 1-3 Month U.S. Treasury Bills |
| Current Yield | 5.10% | 4.96% | 4.93% |
| Expense Ratio | 0.1355% | 0.1472% | 0.1240% |
| Investment Strategy | Passively tracks Bloomberg Barclays 1-3 Month U.S. Treasury Bill Index | Passively tracks Bloomberg Barclays Short Treasury Index | Passively tracks U.S. Treasury securities with a maturity of less than 3 months |
| Strengths | High liquidity, minimal credit risk, government-backed security | Slightly broader maturity range, government-backed security | Competitive yield, similar risk profile to BIL |
| Weaknesses | Limited capital appreciation potential, susceptible to tax implications | Slightly lower yield than BIL, higher expense ratio | Higher expense ratio than BIL, limited capital appreciation potential |
Dividend History (Last 5 distributions)
| Ex/EFF Date | Type | Cash Amount | Declaration Date | Record Date | Payment Date |
|---|---|---|---|---|---|
| 12/18/2023 | Cash | $0.42135 | 01/17/2023 | 12/19/2023 | 12/22/2023 |
| 12/01/2023 | Cash | $0.419159 | 01/17/2023 | 12/04/2023 | 12/07/2023 |
| 11/01/2023 | Cash | $0.407686 | 01/17/2023 | 11/02/2023 | 11/07/2023 |
| 10/02/2023 | Cash | $0.394298 | 01/17/2023 | 10/03/2023 | 10/06/2023 |
| 09/01/2023 | Cash | $0.404697 | 01/17/2023 | 09/05/2023 | 09/08/2023 |