With money market funds now offering almost no yields and the potential for yields to go negative, some advisors and investors are growing less enthusiastic with the investment, especially as fund fees eat away at any remaining yield.
BIL, which has 10 holdings, has a modified adjusted duration of 0.17 years. Duration measures a bond’s sensitivity to changes in interest rates. The $1.57 billion ETF has a 30-day SEC yield of 0.62%, according to issuer data.
Same-day settlement is also increasing the allure and utility of BIL.
“The added option of same-day settlement means BIL now disseminates two NAVs. This is the result of the process we’ve put in place for same-day settlement, where APs will need to submit creation and redemption orders by 12:00 pm EST. The value of the shares submitted will be determined based on the newly added intra-day NAV, which is to be struck at 12:00 pm EST by the fund custodian based on pricing valuations from the calculation agent,” adds SSgA.
For more information on Fixed-Income ETFs, visit our Fixed-Income category.