SPDR Bloomberg 1-3 Month T-Bill ETF: How to Buy

Holdings of the SPDR Bloomberg 1-3 Month T-Bill ETF

The SPDR Bloomberg 1-3 Month T-Bill ETF focuses on holding short-duration T-bills. As of mid-2025, the ETF had 24 holdings. The T-bills all matured within three months, with an average remaining term of one-and-a-half months. The ETF rebalances its holdings at the end of each month, replacing maturing T-bills with new ones with remaining maturities of one to three months.

Should I invest in SPDR Bloomberg 1-3 Month T-Bill ETF?

Investing can be very personal. You should invest in things that align with your risk tolerance and return objectives. With that in mind, here are some reasons you might consider investing in the SPDR Bloomberg 1-3 Month T-Bill ETF:

• You're seeking a low-risk, fixed-income investment.
• You want to invest in a sector ETF focused specifically on short-duration T-bills.
• You're looking for a cash management tool to hold idle cash and generate some interest income.
• You want a very liquid investment.
• You're seeking to generate income on a monthly basis.

Conversely, here are some reasons you might not want to invest in this particular bond ETF:

• You'd prefer to buy T-bills directly from the U.S. government.
• You're seeking a bond ETF or mutual fund with a broader focus on the U.S. Treasury market or global bond market.
• You're seeking a dividend ETF with a higher total return potential than this fund can deliver.
• You think the federal funds rate will fall in the coming months and want to invest in an ETF focused on longer-duration T-bills.

Does SPDR Bloomberg 1-3 Month T-Bill ETF pay a dividend?

The SPDR Bloomberg 1-3 Month T-Bill ETF pays a dividend. It distributes income to investors monthly. In mid-2025, the fund had a distribution yield of about 4.3%.

T-bills are non-interest-bearing debt instruments. The Treasury sells them at a discount. At maturity, the government redeems the T-bill at its face value. You calculate the percentage return of a T-bill by taking the difference between the discount and the bill's face value, which is the interest income the holder earns at maturity.

Monthly interest payments from the SPDR Bloomberg 1-3 Month T-Bill ETF rise and fall based on the federal funds rate. When that rate is higher, the ETF pays a higher monthly dividend:

At that rate, every $10,000 invested in the SPDR Bloomberg 1-3 Month T-Bill ETF would cost about $13.56 in management fees each year. That compares to $9 annually for a similar investment in a rival short-duration T-bill ETF like the iShares 0-3 Month Treasury Bond ETF. Given its higher expense ratio, investors would cede more of their income to the fund's manager.

Historical performance of the SPDR Bloomberg 1-3 Month T-Bill ETF

T-bills are highly susceptible to changes in the federal funds rate. When the rate is low (like it has been for most of the past decade), the income generated by T-bills is low. Conversely, a higher federal funds rate (which we've experienced in more recent years) increases the income generated by short-duration T-bills:

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