TBIL - VanEck 1-3 Month US Treasury Bond ETF

[Dona Ferentes]

VanEck 1-3 Month US Treasury Bond ETF - TBIL​

• Snapshot

Fund description: TBIL invests in a portfolio of US dollar denominated Treasury Bills issued by the US Government with a maturity ranging from 1-3 months with the aim of providing investment returns (before fees and costs) that closely track the returns of the Index.

Index description: The Bloomberg U.S. Treasury Bills: 1-3 Months Unhedged AUD Index is intended to capture the performance of US Treasury Bills issued by the US Government with time to maturity between 1 and 3 months. To be included in the index, the bonds must have an investment grade rating as determined by Bloomberg, and must be public obligations of the US Treasury.

Country of domicile: Australia

 

[Dona Ferentes]

This ETF has only been set up a month or so, so the size is still small. It will be interesting to see if it grows.

Fees 0.22% pa and monthly distributions

 

[InsvestoBoy]

VanEck 1-3 Month US Treasury Bond ETF - TBIL​

• Snapshot

Fund description: TBIL invests in a portfolio of US dollar denominated Treasury Bills issued by the US Government with a maturity ranging from 1-3 months with the aim of providing investment returns (before fees and costs) that closely track the returns of the Index.

Index description: The Bloomberg U.S. Treasury Bills: 1-3 Months Unhedged AUD Index is intended to capture the performance of US Treasury Bills issued by the US Government with time to maturity between 1 and 3 months. To be included in the index, the bonds must have an investment grade rating as determined by Bloomberg, and must be public obligations of the US Treasury.

Country of domicile: Australia

If you can get in without slippage, and hedge in the futs on a 3 month basis, the yield is about the same as the RBA cash rate or the shortest duration AU Gov bond (1Y bond).

Hedging erodes the otherwise relatively attractive 5.28% US 3 month T bill rate.

No hedge just makes this an unlevered AUDUSD short.