TBIL ETF

Warren Buffett highlighted in the company's AGM that he sees accumulating cash and cash equivalents as a more favorable option than investing in additional stocks. Warren Buffett prefers building cash reserves over investing in stocks due to market conditions. TBIL has extremely low volatility risk and duration risk, it is a great cash diversifier for any portfolio to mitigate downside risk.

The US Treasury 3 Month Bill ETF is a fixed income exchange-traded fund. TBIL fund composition includes only AAA rated T-Bills with 30-day SEC yield of 5.11%. TBIL has slightly edged out similar funds (SGOV, BIL) since the Federal Reserve raised interest rates.

The Fed meeting went as expected, with no major changes in policy. The short-end of the bond market remains attractive. Fed Chair Jerome Powell emphasized the focus on managing inflation and maintaining full employment with a long-term goal of inflation around 2%. The Fed discussed slowing the pace of balance sheet runoff, aiming for a smooth transition to prevent liquidity problems.

Looking to freshen up your fixed income allocation? It may be worth taking a look at some of the short-term Treasury offerings out there.

The US Treasury 3 Month Bill ETF has raised nearly $3 billion in assets due to its transparency, liquidity, and ease of access. TBIL offers exposure to short-term US Treasury Bills with a maturity period of three months, providing the benefits of an ETF's ease and efficiency. The fund's advantages include liquidity, low risk backed by the US government, dividend payments, and potential tax efficiencies, but it may have limited growth potential and is subject to interest rate risk.

Downgrading US Treasury 3 Month Bill ETF from a buy to a hold due to changing macroeconomic developments. The Federal Reserve has shifted its messaging, hinting at potential interest rate cuts in 2024. Investors holding TBIL should consider alternative investments such as short-term treasury bonds or the Simplify Short Term Treasury Futures Strategy ETF to benefit from potential rate cuts.

'Cash' instruments like the US Treasury 3 Month Bill ETF have outperformed other assets since July 31, 2023. This is partly because the Treasury's funding requirements have been higher than expected, sucking liquidity out of the financial system. Until the U.S. government reins in its spending, this may continue to be a headwind for markets.

Barbell strategy involves splitting investments into low-risk and high-risk segments for balance between safety and growth. The current market environment is in uncharted waters, is narrative-driven, has overvalued mega-cap stocks, and has seen the fastest pace of interest rate hikes in history. The TBIL ETF offers exposure to 3-month Treasury bills with a current yield of 5.56% for conservative investment and capital protection.

The US Treasury 3 Month Bill ETF is a relatively new offering that tracks the returns of the ICE BofA US 3-Month Treasury Bill Index. TBIL has a current yield of 5.20% and has outperformed its benchmark since its inception in August 2022. Treasury bills versus longer-duration bonds is a complex equation, and we explore one study which compares the returns of the two.