Buying Treasury Bill ETFs vs. Buying Treasury Bills Directly What Are Treasury Bills and Treasury Bill ETFs? Treasury bills are short-term debt instruments issued by the US government, with maturities ranging from a few weeks to one year. They’re considered one of the safest investments, backed by the full faith and credit of the US government, making them ideal for capital preservation and liquidity. Treasury bills are sold at a discount to their face value, and you receive the full face value at maturity—the difference being your return. A Treasury bill ETF is a fund that pools investors’ money to buy a basket of Treasury bills, typically tracking an index like the Bloomberg 1-3 Month US Treasury Bill Index. These ETFs trade like stocks on major exchanges, offering an indirect way to gain exposure to Treasury bills without purchasing them directly. Buying Treasury Bills Directly: The Hands-On Approach Purchasing Treasury bills directly is typically done through TreasuryDirect, the US...
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