Treasury Bill ETFs SGOV and BIL (Less Hassle And Easier To Buy?)

Are Treasury Bill ETFs like SGOV & BIL a good alternative to buying individual Treasury Bills at auction and in the secondary market? I take a look at two popular 0-3 month Treasury Bill ETFs: SGOV and BIL. I look at the treasuries they hold and the average maturities as well as the expenses. I then compare them to the treasuries you can buy individually in the secondary market to show you how much of a difference in yield there is between just buying Treasuries versus buying SGOV or BIL ETFs.
With the Fed still expected to raise interest rates, many people are switching for the safety of Treasury Bills compared to the risk of the stock market.

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Disclaimer: I am not a financial advisor, and nothing on this channel is meant to be financial advice. The ideas expressed on this channel are purely opinions and should not be regarded as objective information. Nothing on this channel is a recommendation to buy or sell securities. Do not assume that facts and numbers in any video are accurate. Always do your own due diligence.

[ashhansen]

Great information. I have all our iras in $bil and was trying to explain it to my brother, forwarding this super helpful video. Thanks for the work put in

[adamo]

Great video. These ETFs are being overlooked right now and will gain in popularity as awareness grows.

[daveschmarder-US]

I own both T Bills and Treasury ETFs. Currently I have a little in SCHO. But I mostly have 3 and 6 month TBs. The SCHO is part of my ready cash resource, should it be needed. I now have a very small amount in a couple 1 year TBs. A year ago I had nothing in Treasuries. I just kept cash as my fixed income. And that income was fixed -- at nearly 0%.
For additional bond speculation I own a tiny amount ofVGLT and a very tiny amount of EDV. Just enough so I notice the movement.
Your presentations are excellent.

does an ETF of short treasuries like TBIL is risk free? i mean can it go down if is there a recesion or big volatiliy in the markets?

[bluegtturbo]

Thank you for this! I went for Sgov because I'm nearing retirement and I want to preserve what I have over possible longer term benefits of stocks.

[somejohndoe]

That was an amazing video, you got a new subscriber. Keep up the great work. Thank you for the quality content.

[joedall]

Was hoping this video would explain how these funds return money to investor? Do they return make a payment comparable to a dividend?

[dr.avinashksajnani]

Love it ! On that T Bil train and it’s been a game changer

[bryanmcb]

Thank you for sharing your knowledge on these ETF’s!

[aaajjj]

Quality video, very helpful, thanks. 1) Is the bid ask spread on sgov typically only 0.01, and how high might it get from your experience? 2) There could be Capital Gain on sgov up to roughly 0.5%, under current yields, if you buy and sell right after and before ex date, then even for measly amounts of CG, you are burdened with having to fill out f8949 and SchD on fed tax return, which is a pain, or will the cg appear as interest on 1099int making life easier? 3) intraday price of sgov ... have you ever seen much of a premium or discount, meaning mkt price away from nav?

[deriums]

I'd rather buy the bond itself, BUT You can buy into the ETFs for $1 at a time and can DRIP the dividends. Honestly, it might not be a bad idea to buy the actual bonds if you can and whatever you earn from that, throw it into the ETFs and just let it drip while you wait out this weird environment we are in.

[JasonDouce]

Im considering parking an emergency fund in sgov over a money market fund like fdlxx due to living in a high tax state. Nice video

[birdman]

Considering that SGOV is a US Treasury Bond ETF, is the monthly interest payment exempt from state tax?

[noydbwia]

An apology for the novella...
I have just stepped into the world of Treasury bills and find that the innumerable videos talking about how laborious it is to manage the rolling of maturing t-bills and what-not are a bit insufferable... When I decided to go into treasuries, my goal was to cut out all of the middlemen, all of them (banks/brokerages/et.al.). An "ETF" is a middleman. Don't need, nor care about, someone looking to shave fees off what I can make directly from doing the work myself through the wonderful website that is Treasury Direct. My overall plan became shifting from regularly scheduled deposits into 2 different savings accounts into a series of rolling 4week bills... Weekly purchases, all set on a automatic reinvestment plan that reaches the final maturity in either Nov or Dec. I have designs, that over the next couple of years to have no less than 80% of my disposable income rolling through the whole slate of offerings, 4, 8, 13, 17 and 26 week t-bills.... I will be receiving what's called "refunds" almost every day of every week come next year... And that doesn't include the new bills that I continue purchasing weekly throughout the next year! Working with Treasury Direct is a time consuming affair, but I find it a fascinating challenge and look forward to a good run. The only reason I have to involve a bank or any other financial middleman is the need to have a place for those deposits and withdrawals to funnel through. I don't pay interest and I don't appreciate banks that do the same thing I do then shave off a little bit for the poor little depositor. Learn to beat the banks and middlemen at their own game, prosper and not give three happy flips about the stock market.

[Soobs]

It might be helpful to touch on Treasury FRNs. The ETFs USFR and TFLO are getting a lot of attention.

[kendallhughes]

Thank you for the video- is it safe for me to have the majority of my money (about $824K+) temporarily parked in either *SGOV* or *BIL* while I sit back and wait for the stock market to settle down? Also would you recommend *TBIL* (US Treasury 3 Month Bill ETF) instead, as I noticed that its currently paying a *+5% yield* ?

[savysav]

Thank you! Seriously considering buying into sgov

[dGooddBaddUgly]

I was thinking about parking some reserve in ETFs and treasury bill ETFs seem to protect me from market fluctuation for the short term. Thanks for the great video.

[michaelzarifes]

Hi, thanks for the video and all the great information. One question I do have. If you want to put some money into BIL etf, and let's say, in the future, you want to sell a portion in order to take cash out of the etf, is it best to wait until a certain time of the month to get the full value/accrual of the dividends? So, would you recommend waiting until the end of the month (30th or 31st) to sell. Or wait until the first of the month to sell? Or can you sell shares for cash at anytime during the month? Also will selling shares of BIL etf trigger any kind of a wash sale? JUst want to make sure I am thinking about things in the right way. What is the best way to do this? Thanks!

[kfhcr]

Thank you Sir,
I appreciate your time to help us learn.
Well done.