Is TBIL a good ETF?
TBIL is the VanEck 1-3 Month US Treasury Bond ETF from VanEck. We classify it under Bonds and Intl. With about $107 million in assets it is a solidly established fund.
On a total-return basis, TBIL has delivered 3.07% a year over 3 years (ranked 205th of 226 ETFs we track) and -4.91% a year over 1 year (ranked 278th of 308 ETFs we track). It has trailed most comparable ETFs over the periods we measure, so look closely at whether its strategy fits what you're after.
The management fee of 0.22% is reasonable. That's cheaper than the typical 0.45% for similar ETFs. If cost is your priority, IUSG (0.17%) and USTB (0.19%) cover similar ground for less. It pays a healthy 3.76% yield, attractive if you want regular income. Bear in mind distributions are taxed each year at your marginal rate, so a high yield is less tax-efficient for higher earners and during the accumulation phase.
Over the past 3 years its volatility has been moderate (annualised standard deviation around 9.45%), meaning the kind of swings you'd expect from a diversified equity fund.
Strengths
- Low-cost: a 0.22% management fee keeps more of the return in your pocket.
- Pays a useful 3.76% income yield.
Things to watch
- Has lagged most peers over 3 years (205th of 226).
- Cheaper alternatives exist: IUSG and USTB.
What TBIL's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
Global and international shares from outside Australia — broadening you into thousands of companies and the sectors (tech, healthcare) the local market lacks.
- Market regime
- Essential diversification away from the bank-and-resources-heavy ASX. Unhedged versions carry currency risk; hedged versions remove it at a small cost.
- In a portfolio
- A core holding for almost every long-term Australian portfolio.
General information only, generated from the fund's published data — not personal financial advice. Past performance is not a reliable indicator of future returns. Consider your own circumstances or seek licensed advice before investing.