How do you buy a three-month Treasury bill?

Investors have several ways to buy a 3-month Treasury bill. They can:Open an account with the U.S. government (TreasuryDirect.gov) and buy them directly.Buy T-bills with a remaining maturity of three months through their brokerage account (if it allows trading bonds).Purchase an ETF focused on short-duration T-bills, like the SPDR Bloomberg 1-3 Month T-Bill ETF or the iShares 0-3 Month Treasury Bond ETF.

How does SPDR Bloomberg 1-3 Month T-Bill ETF work?

The SPDR Bloomberg 1-3 Month T-Bill ETF is an ETF focused on short-duration T-bills. The fund holds T-bills with remaining maturities of one to three months. It rebalances at the end of each month, replacing maturing T-bills with those that mature in one to three months.

What is the Bloomberg 1-3 Month T-bill ETF?

The SPDR Bloomberg 1-3 Month T-Bill ETF is a passively managed fund that tracks the Bloomberg 1-3 Month Treasury Bill Index. It provides investors with exposure to short-duration T-bills, which they typically hold to generate interest income on idle cash.

How do investors buy the BIL ETF?

Buying the SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) is easy. Go to your brokerage account's order page and fill out all the relevant information, including:The number of shares you want to buy or the amount you want to invest to purchase fractional sharesThe ticker (BIL for SPDR Bloomberg 1-3 Month T-Bill ETF)The order type (limit order or a market order)Once you complete the order page, click to submit your trade and add the bond ETF to your portfolio.

How to Buy SPDR Bloomberg 1-3 Month T-Bill ETF (BIL)

The SPDR Bloomberg 1-3 Month T-Bill ETF (BIL +0.00%) enables anyone to easily invest in short-term U.S. Treasury bills (T-bills). These government obligations help the U.S. Treasury fund its short-term cash requirements. Investors use T-bills to park their short-term cash in a low-risk, interest-bearing investment.

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NYSEMKT: BIL

SPDR Series Trust - State Street SPDR Bloomberg 1-3 Month T-Bill ETF

Today's Change

(0.00%) $0.00

Current Price

$91.50

Key Data Points

AUM

$47B

Dividend Yield

3.81%

Expense Ratio

0.14%

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This exchange-traded fund (ETF) provides exposure to T-bills with remaining maturities of between one and three months. It's an ideal cash management tool for investors since the fund lets them earn some interest income on their idle cash.

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Exchange-Traded Fund (ETF)

An exchange-traded fund, or ETF, allows investors to buy many stocks or bonds at once.

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How to buy SPDR Bloomberg 1-3 Month T-Bill ETF

Anyone can buy shares of the SPDR Bloomberg 1-3 Month T-Bill ETF. It trades on major stock exchanges, allowing you to purchase shares in your brokerage account. Here's a step-by-step guide to help you add the bond ETF to your portfolio.

Open your brokerage account: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
Search for the ETF: Enter the ticker "BIL" into the search bar to bring up the ETF's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this ETF.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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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.

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Should you 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:

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What is the SPDR Bloomberg 1-3 Month T-Bill ETF's expense ratio?

ETF sponsors like State Street charge a fee, known as the expense ratio, to manage the fund's assets on behalf of investors. The SPDR Bloomberg 1-3 Month T-Bill ETF's expense ratio is 0.1356%, higher than other ETFs focused on short-duration T-bills. For example, the iShares 0-3 Month Treasury Bond ETF (NYSEMKT:SGOV) has an expense ratio of 0.09%.

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ETF Expense Ratio

Annual fee as a percentage of assets that an Exchange-Traded Fund charges investors for management and operational costs.

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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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Data source: State Street.
Fund	1-Year	3-Year	5-Year	10-Year
SPDR Bloomberg 1-3 Month T-Bill ETF	4.90%	4.17%	2.46%	1.71%
Benchmark (Bloomberg 1-3 Month U.S. Treasury Bill Index)	5.03%	4.33%	2.60%	1.86%

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As that table shows, the SPDR Bloomberg 1-3 Month T-Bill ETF does a solid job tracking its benchmark.

The bottom line

The SPDR Bloomberg 1-3 Month T-Bill ETF allows anyone to easily invest in T-bills through their brokerage account, making it a great cash management tool. It allows investors to generate some additional interest income on idle cash.

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FAQ

Investing in the SPDR Bloomberg 1-3 Month T-Bill ETF FAQ

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About the Author

Matt DiLallo has been a contributing Motley Fool stock analyst specializing in the energy, industrials, and real estate sectors since 2012. He also covers dividend-paying stocks, pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

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@MatthewDiLallo

Matt DiLallo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

How to Invest in SPDR Bloomberg 1-3 Month T-Bill ETF (BIL)

Key Points