BIL Stock Recent News

U.S. Weekly Fund Flows Insight Report: Investors Embrace Money Market Funds During The Fund Flows Week, But Test The Waters Of Equity, Bond, And Commodity ETFs

GBIL: Balancing Income And Principal Protection

Since the last time I covered BIL, it has returned 1.12%, while the S&P 500 and BND are down about 1.09% and 1.64%, respectively. BIL provides a low-risk high-yield investment. BIL is getting a slight rating upgrade to a Strong Buy due to the expectation of higher interest rates for longer than previously expected.

The Fed may have held rates at this month's FOMC meeting but indicated the potential for one more hike before the year's end. Advisors and investors looking to optimize their bond exposures in a higher-for-longer rate environment should consider the  NEOS Enhanced Income Aggregate Bond ETF (BNDI).

Higher Fed rates have led to higher rates on most bonds and fixed-income securities. T-bills have benefited more than most and currently yield +5.4%. An analysis and peer comparison of t-bills follows.

BIL is a short-term treasury fund with low volatility and a high total return profile, making it an ideal investment for retail investors. BIL is a credit risk-free investment fund with enticing yields as risk-free rates have risen. While some Bank CDs offer marginally higher yields (30-50bps higher yields), retail investors need to be mindful of early withdrawal fees and credit risk.

The Fed's top economists reversed previous recession predictions. The stock market, measured by the S&P 500, is up nearly 20% since January.

An inverted yield curve provides investors with opportunities at the short end of the yield curve. Treasury bonds are considered the safest investment due to the low likelihood of a U.S. government default and are backed by the U.S. Treasury Department. The iShares 0-3 Month Treasury Bond ETF is highly recommended for investment as it provides access to U.S. T-bills, offers stability and liquidity, and generate income on excess cash.

Ultra short-term bonds, particularly treasuries, are gaining popularity due to their low risk and high dividends, making them attractive to investors anticipating a recession. Two potential ETFs to consider are the popular SPDR Bloomberg 1-3 Month T-Bill ETF and the lesser-known SPDR SSgA Ultra Short Term Bond ETF, both offering high yields with low volatility. While BIL is ideal for investors seeking near-risk-free assets, ULST offers slightly higher risk for a higher yield and potential for capital appreciation.

BIL gives exposure to U.S. short-term treasury bills and could lend stability in the high volatility and uncertainty of the market. I believe that the fund is a good match in order to hedge duration risk and earn attractive return. The inflection point in the Fed's monetary policy appears not far off, and I expect at least 4% yield from BIL's portfolio over the next 12 months.