Picking and Choosing Among the Treasury ETFs | ETF Trends

You are viewing an older ETF Trends article from 2008. You may be interested in reading our more current articles on Bond ETFs and Treasuries.

Bonds, and bond exchange traded funds (ETFs) are a good place for investors to hang out and park their cash in uncertain times.

ETFs that invest in short-term Treasury bills are known for being one of the safest types of investments. SPDR Lehman 1-3 Month Treasury Bill ETF (BIL) invests in short-term Treasury bills and has an expense ratio of 0.14%, so most of the yield goes into your pocket.

Current yield, which can be calculated here, is an important indicator of a Treasury bill and if it’s a good time to go in. The only disadvantage of an ETF Treasury bill fund is that you have to pay a brokerage commission to buy and sell.