What Is TBIL? F/m US Treasury 3 Month Bill Fund - ETF Class Shares
Last updated September 2026
Short answer
TBIL is F/m US Treasury 3 Month Bill Fund - ETF Class Shares, an ETF that tracks the most recently issued three-month US Treasury bill at a 0.15% expense ratio. TBIL is not a portfolio in the usual sense. It is designed to hold the most recently auctioned three-month US Treasury bill, rolling into the new issue as each auction comes round. There is no diversification decision to make, no credit selection and no maturity ladder, because there is essentially one security. The yield is 4.12 percent, reflecting whatever the front of the Treasury curve pays at the time. The fee is 0.15 percent, assets are $7.1 billion and the fund launched in 2022.
TBIL is issued by F/m Investments LLC and tracks the most recently issued three-month US Treasury bill. It charges a 0.15% expense ratio, holds approximately $7.1B in assets under management, yields about 4.12%, and launched in 2022.
One security, held deliberately
Almost every bond fund spreads across many issues to reduce the effect of any one going wrong. TBIL does the opposite and it costs nothing to do so, because the security in question is a direct obligation of the US Treasury maturing in about three months. There is no issuer risk to diversify away from, and no other bond in the fund can drag the result. What you get is exactly the return of that bill, less the fee.
The clarity is the appeal. A holder can see precisely what determines the fund's yield, which is the three-month auction rate, and nothing else. There is no manager judgement about credit or duration, no sector rotation to assess and no chance that the fund quietly reaches for extra yield. For an instrument used as a place to hold money, being able to describe it in one sentence is a genuine feature.
Duration measured in weeks
The price sensitivity of a bond to interest rates rises with the time until repayment. A bill maturing in three months has almost none. If market rates move sharply, the effect on a three-month bill's price is small and disappears entirely within a quarter as the bill matures at face value. This is why TBIL sits closer to cash than to any bond fund on the risk spectrum.
The corresponding limitation is that TBIL provides no protection against falling rates. Longer-maturity Treasury funds gain when rates drop, which is why they are held as a counterweight to equities. TBIL simply reinvests at the new lower rate at the next auction and its distribution falls within a quarter. It also means the 4.12 percent yield is entirely a snapshot: it tracks policy rates with almost no lag in either direction.
What the fee buys, and what it costs
At 0.15 percent the fund charges five times what a short Treasury index fund such as SCHO charges at 0.03 percent, for a portfolio that is far simpler. That comparison is unflattering on its face. The fee is buying convenience: continuous exchange trading, automatic rolling at each auction, no need to manage individual bill maturities or reinvest proceeds, and access inside a brokerage account that may not support direct Treasury purchases.
Whether that is worth paying depends on the alternative available to a given holder. Buying three-month bills directly at auction is possible and carries no fee, but it requires managing the roll. Money market funds charge their own fee and hold a broader mix of short instruments. TBIL's specific position in that set is a single-security government exposure in an exchange-traded wrapper, which is a narrow but real gap in the product range.
TBIL holdings: top 10
Approximate weights as of August 2026. Each ticker links to its individual stock guide in Walnut.
| Rank | Ticker | Company | % of TBIL |
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How do I invest in TBIL?
There are three common ways to get TBIL exposure. Buy shares (or fractional shares) of TBIL directly at any major broker that lists it. Hold it as a core position and layer more concentrated ideas on top. Or build it into a thematic portfolio in Walnut, so TBIL sits alongside other holdings that express the same thesis, with target weights you can rebalance toward. TBIL trades like a stock during market hours, so you buy it the same way you would any listed share.
New to buying funds? See how to buy an ETF, step by step.
Is TBIL a good buy?
Whether TBIL is a good buy depends less on any single call and more on your time horizon and what you already hold: it tracks the most recently issued three-month US Treasury bill, so the real question is whether you want that exposure in your mix and at what weight. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is TBIL a buy?
The bottom line on TBIL
TBIL gives you the most recently issued three-month US Treasury bill exposure in one ticker at a 0.15% expense ratio. Most investors use it as a core holding and layer more concentrated thematic portfolios on top.
More on TBIL
Whether TBIL is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is TBIL a buy?
TBIL yields 4.12% as of August 2026, paid by passing through the dividends of its underlying holdings. For the payout schedule, history, and how the distributions are taxed, see TBIL dividend: yield and schedule.
New to funds like TBIL? Start with what an ETF is, then how to buy an ETF, or browse the full guide to ETF investing.
Wondering how TBIL fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in TBIL with AI
Connect the broker you already use and ask Walnut's AI how TBIL fits what you actually hold: what it overlaps with, what it leaves you exposed to, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
Does TBIL really hold only one bond?
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That is its design. The fund is built to hold the most recently issued three-month US Treasury bill, replacing it with the new issue as each auction occurs. There may be brief transitional periods around a roll, and small cash balances for operational purposes, but the intent is single-security exposure rather than a diversified portfolio.
Can TBIL lose money?
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Only marginally, and only over short periods. A three-month bill's price barely moves when interest rates change, and it matures at face value regardless. The realistic risk is opportunity cost: if rates fall, the fund reinvests at the lower rate quickly and the distribution declines, whereas a longer bond would have locked in the higher rate for longer.
How does TBIL compare with a money market fund?
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Both sit at the very short end. A money market fund holds a mix of short instruments, which may include government repurchase agreements and commercial paper depending on its type, and is managed to a stable value. TBIL holds one Treasury bill and trades on an exchange at a price that can move slightly. The government-only exposure is more restrictive and more transparent.
Why does the 4.12 percent yield keep changing?
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Because the fund reprices at every auction. A new three-month bill is issued at whatever rate the market clears, and the fund's distribution follows within weeks. That makes it one of the most direct reflections of short-term policy rates available in a fund. It also means the yield offers no protection if rates fall, unlike a longer-maturity holding.
Is 0.15 percent expensive for what it does?
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It is high relative to broad short Treasury index funds, some of which charge 0.03 percent for a diversified portfolio of short government bonds. The fee pays for the roll being handled automatically, exchange tradability and precise maturity targeting. Whether that convenience is worth the difference depends on whether buying bills directly is practical for the holder.
How is TBIL different from a short-term Treasury ETF?
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A fund like SCHO holds a range of Treasuries maturing across a band of years, so it has more price sensitivity to rates and its yield adjusts more slowly. TBIL targets one maturity point at the very front of the curve. In practice TBIL behaves more like cash and the broader fund behaves more like a very conservative bond holding.
How is the income taxed?
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Interest on US Treasury securities is generally exempt from state and local income tax while remaining subject to federal tax, and that treatment passes through a fund holding Treasuries. The value of the exemption varies by state and by individual circumstances, so the fund's tax documents and a qualified adviser are the right sources rather than a general statement.
When is TBIL the wrong tool?
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When the objective is yield, since the very front of the curve pays less than longer or riskier debt in most conditions. When bonds are meant to offset equity losses, because that effect requires duration this fund does not have. And when a holder can buy Treasury bills directly without difficulty, in which case the fee is paying for a service they do not need.
What is TBIL's expense ratio?
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TBIL has an expense ratio of 0.15% per year as of August 2026, charged by F/m Investments LLC and deducted from the fund's value rather than billed to you separately. On a $10,000 position that is roughly $15 a year. Fees compound over time, so on a long-term holding the expense ratio is one of the few return drivers you control. It is worth comparing against other funds that track the most recently issued three-month US Treasury bill before you choose.
How do I compare TBIL to similar ETFs?
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Put a few fields side by side: the expense ratio (fees compound over decades), the index or strategy it tracks, the top holdings and how much they overlap with what you already own, the dividend yield, and the AUM, liquidity, and bid-ask spread that affect trading costs. For index funds, tracking error (how closely it follows its index) and tax efficiency matter too. TBIL's figures are above; the full method is in Walnut's guide on how to compare ETFs.
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Walnut is informational, not investment advice. Holdings weights and fund statistics on this page are approximations stamped to August 2026; verify current figures against F/m Investments LLC's fund page or your broker before investing.