SPDR Bloomberg 1-3 Month T-Bill ETF
Price
$91.41
YTD
—
Expense
0.14%
Yield
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Best Money Market & Ultra-Short Bond ETFs for 2026
Discover the best money market and ultra-short bond ETFs for 2026. Compare BIL, SHV, SGOV, USFR and other cash-like investments.
Complete Guide to Money Market & Ultra-Short Bond ETFs in 2026
Money market and ultra-short bond ETFs have attracted record inflows as investors seek safe, liquid places to park cash while earning competitive yields. With assets exceeding $300 billion across the category, these funds serve as modern alternatives to traditional savings accounts and money market funds.
Why Use Cash-Like ETFs?
Traditional savings accounts at many banks pay well below market rates. Cash-like ETFs invest in Treasury bills, government repo agreements, and short-duration bonds that capture the full benefit of current interest rates with minimal credit and duration risk.
Top Money Market & T-Bill ETFs
BIL (SPDR Bloomberg 1-3 Month T-Bill ETF): Invests in 1-3 month US Treasury bills. Near-zero credit risk and minimal interest rate sensitivity. One of the safest investments available.
SGOV (iShares 0-3 Month Treasury Bond ETF): Similar to BIL with slightly different maturity range. From BlackRock, the world's largest asset manager.
SHV (iShares Short Treasury Bond ETF): Invests in Treasury bonds maturing in less than one year. Slightly more yield than T-bill ETFs with minimal additional risk.
USFR (WisdomTree Floating Rate Treasury Fund): Invests in floating rate Treasury notes that adjust with interest rates. Provides natural protection against rising rates.
🏆 Winner — #1 pick
iShares 0-3 Month Treasury Bond ETF
Price
$100.43
YTD
—
Expense
0.07%
Yield
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Frequently asked questions
Why invest in money market and ultra-short bond ETFs?
These ETFs provide a safe, liquid alternative to savings accounts, earning competitive yields with minimal credit and duration risk.
What is the total asset size of money market and ultra-short bond ETFs?
The category exceeds $300 billion in assets in 2026.
Which ETF invests in 1-3 month US Treasury bills?
BIL — SPDR Bloomberg 1-3 Month T-Bill ETF invests in 1-3 month Treasury bills.
What is the expense ratio of BIL ETF?
BIL has an expense ratio of 0.14%.
Which ETF is the top pick for cash-equivalent exposure?
BIL — SPDR Bloomberg 1-3 Month T-Bill ETF is the #1 pick for ultra-short Treasury exposure.
Which ETF is a low-cost alternative to BIL?
SGOV — iShares 0-3 Month Treasury Bond ETF offers ultra-short Treasury exposure with a 0.07% expense ratio.
What is the price of BIL ETF?
BIL is priced at $91.42.
What is the price of SGOV ETF?
SGOV is priced at $100.43.
Which ETF invests in Treasury bonds maturing in less than one year?
SHV — iShares Short Treasury Bond ETF invests in Treasury bonds with less than one-year maturity.
Which ETF protects against rising interest rates?
USFR — WisdomTree Floating Rate Treasury Fund invests in floating rate Treasury notes that adjust with interest rates.
Who manages SGOV ETF?
SGOV is managed by BlackRock, the world's largest asset manager.
Do these ETFs carry credit risk?
They have near-zero credit risk since they invest primarily in U.S. Treasury securities.
Are money market ETFs suitable for long-term growth?
No, they are designed for capital preservation and liquidity, not long-term growth.
Can these ETFs be used as a cash alternative?
Yes, they are ideal for parking cash while earning market-based yields.
Which ETF offers floating rate exposure?
USFR — WisdomTree Floating Rate Treasury Fund provides natural protection against rising interest rates.
What is the main benefit of BIL ETF?
BIL provides near cash-equivalent safety with zero interest rate risk for ultra-short Treasury bills.
Which ETF has the lowest expense ratio in this category?
SGOV — iShares 0-3 Month Treasury Bond ETF has the lowest expense ratio at 0.07%.
Is SHV ETF riskier than BIL?
Slightly, since SHV invests in short-term Treasury bonds rather than T-bills, but risk remains minimal.
Do these ETFs pay interest or dividends?
Yes, they pay yields derived from Treasury interest, typically distributed monthly.
Who is the runner-up in money market ETFs?
SGOV — iShares 0-3 Month Treasury Bond ETF is the runner-up due to its ultra-low cost and similar exposure to BIL.