How does the TBIL ETF select its holdings?

The TBIL ETF derives its holdings by eliminating all non-U.S. companies from the STOXX® Global 1800 Index. It further excludes companies that are non-compliant based on Sustainalytics Global Standards Screening assessment, involved in controversial weapons, or are coal miners. The remaining companies are assessed based on ESG key performance indicators (KPIs) within their respective industries, and those with ESG scores below the median within each industry are dropped from the Underlying Index.

What is the investment objective of the TBIL ETF?

The TBIL ETF's investment objective is to mirror the performance of the Underlying Index, which is designed to showcase better ESG and risk-return characteristics compared to the broad U.S. large-cap equity market.

How does the TBIL ETF work?

The TBIL ETF follows a passive or indexing approach, aiming to achieve its investment objective by using a representative sampling strategy. It invests in a selection of securities that collectively have a similar investment profile to the Underlying Index, which consists of U.S. companies with enhanced ESG characteristics.

What is the industry concentration policy of the TBIL ETF?

The TBIL ETF may concentrate its investments in a particular industry or group of industries to approximately the same extent as the Underlying Index. As of December 31, 2022, the Underlying Index was concentrated in the Information Technology sector.

5 min read

By Ron Koren, ETF Insider

What is the TBIL ETF ?

In the world of finance, Exchange-Traded Funds (ETFs) have gained immense popularity among investors due to their diversified nature and ease of trading. One such ETF that has garnered attention is the UST 3 Month Bill Fund, often referred to as the TBIL ETF. In this article, we will delve into the various aspects of this ETF, providing an overview, understanding its underlying and exposure, exploring its benefits as an investment option, and discussing important considerations before investing.

<h2>TBIL ETF: Overview <h2> The UST 3 Month Bill Fund, known as TBIL ETF, is a passively-managed exchange-traded fund that seeks to replicate the performance of the ICE BofA US 3-Month Treasury Bill Index (G0O1). As a passive ETF, TBIL aims to match the price and yield movements of its underlying index, without active management decisions. <h2>TBIL ETF: Underlying and Exposure - What Does It Track and How? <h2> The Underlying Index, established by ICE Data Services, comprises a single issue purchased at the start of the month and held for the entire month. At the end of the month, this issue is sold and replaced with a newly selected one. The selected issue is the outstanding Treasury Bill that matures closest to, but not beyond, three months from the rebalancing date. To qualify for selection, an issue must have settled on or before the month-end rebalancing date. The components of the Underlying Index change based on new public sales (auctions) by the U.S. Government of underlying Treasury Securities.

TBIL overlap What is the TBIL ETF ?

<h2>TBIL ETF: Benefits of Investing in this ETF <h2> Investing in the TBIL ETF offers several advantages to investors. Firstly, it provides exposure to short-term U.S. government debt securities, which are considered relatively safe investments with low credit risk. Additionally, the fund's objective of tracking the 3-Month Treasury Bill Index makes it an ideal option for investors seeking short-term capital preservation while earning a competitive yield. <h2>TBIL ETF: Considerations Before Investing <h2> Before considering investing in the TBIL ETF, investors should be aware of certain factors. As a passive ETF, the fund's performance is tied directly to the movements of its underlying index. This means that it may not outperform the market during bull runs, but it also minimizes the risk of poor decision-making by active managers. Moreover, as with any investment, it's essential to understand that the value of the ETF may fluctuate due to changes in interest rates, economic conditions, and overall market sentiment. <h2>Conclusion: <h2> In conclusion, the TBIL ETF, or the UST 3 Month Bill Fund, offers investors an opportunity to gain exposure to short-term U.S. government debt securities in a passively-managed structure. Its focus on tracking the ICE BofA US 3-Month Treasury Bill Index provides investors with potential benefits in terms of safety and competitive yields. However, as with any investment, individuals must carefully consider their financial goals, risk tolerance, and market conditions before making investment decisions.

Disclaimer: This article is for informational purposes only and does not provide any investment advisory services. Investing in ETFs or any financial instruments involves risk, and individuals should seek advice from a qualified financial professional before making any investment decisions.

Sources:
The UST 3 Month Bill Fund prospectus and fact sheet
ICE Data Services - The Index Provider of the ICE BofA US 3-Month Treasury Bill Index

TBIL ETF issuer
TBIL ETF official page

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FAQ

What is the TBIL ETF?
The TBIL ETF, also known as the [ETF Name], is an exchange-traded fund that aims to provide investors with exposure to a selection of U.S. companies with enhanced environmental, social, and governance (ESG) characteristics relative to the U.S. companies in the STOXX® Global 1800 Index.
How does the TBIL ETF select its holdings?
The TBIL ETF derives its holdings by eliminating all non-U.S. companies from the STOXX® Global 1800 Index. It further excludes companies that are non-compliant based on Sustainalytics Global Standards Screening assessment, involved in controversial weapons, or are coal miners. The remaining companies are assessed based on ESG key performance indicators (KPIs) within their respective industries, and those with ESG scores below the median within each industry are dropped from the Underlying Index.
What is the investment objective of the TBIL ETF?
The TBIL ETF's investment objective is to mirror the performance of the Underlying Index, which is designed to showcase better ESG and risk-return characteristics compared to the broad U.S. large-cap equity market.
How does the TBIL ETF work?
The TBIL ETF follows a passive or indexing approach, aiming to achieve its investment objective by using a representative sampling strategy. It invests in a selection of securities that collectively have a similar investment profile to the Underlying Index, which consists of U.S. companies with enhanced ESG characteristics.
What is the industry concentration policy of the TBIL ETF?
The TBIL ETF may concentrate its investments in a particular industry or group of industries to approximately the same extent as the Underlying Index. As of December 31, 2022, the Underlying Index was concentrated in the Information Technology sector.

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