ETF Comparison

BIL vs USFR: Which Is the Better Pick in 2026?

A head-to-head comparison of SPDR Bloomberg 1-3 Month T-Bill ETF and WisdomTree Floating Rate Treasury Fund covering yield, cost, risk, and income potential.

Data updated May 20, 2026

State Street

ETFs42

Total AUM$1750.5B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

State Street is one of the largest ETF providers globally and is known for its SPDR family of funds, which pioneered the modern ETF industry. The company's 17-fund lineup spans multiple strategies including broad market exposure (SPLG), dividend-focused income products (SPYD, SPYM), sector-specific funds (the Select Sector SPDR series), and specialized strategies like covered call income (Premium Income series) and portfolio construction tools (SPDR Portfolio). Notable for its extensive Select Sector SPDR offerings that track individual S&P 500 sectors and its focus on both traditional index investing and income-generating strategies, State Street serves investors across a wide range of investment objectives from core holdings to tactical income plays.

See our curated list of related YouTube videos on BIL.

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WisdomTree

ETFs5

Total AUM$40.1B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

WisdomTree is recognized for its specialized approach to dividend and income-focused ETFs, offering funds designed to capture yield through both traditional dividends and alternative income strategies. The company's limited lineup of three ETFs concentrates on income generation across different market segments, with popular tickers including DGRW (dividend growth), DLN (dividend growth with a defensive tilt), and USFR (floating-rate bonds). WisdomTree distinguishes itself in the ETF space by emphasizing tax-efficient dividend selection and exposure to less-traditional income sources beyond standard equity dividends.

See our curated list of related YouTube videos on USFR.

See all WisdomTree ETFs

Side-by-side snapshot

	BIL	USFR
Full name	SPDR Bloomberg 1-3 Month T-Bill ETF	WisdomTree Floating Rate Treasury Fund
Issuer	State Street	WisdomTree
Last Close	$91.53 as of May 20, 2026	$50.44 as of May 20, 2026
Distribution yield	3.50%	3.60%
Expense ratio	0.14%	0.15%
AUM	$46.4B	$17.0B
Distribution frequency	Monthly	Monthly
Underlying index	Bloomberg 1-3 Month U.S. Treasury Bill Index	Bloomberg U.S. Treasury Floating Rate Bond Index
Objective	Seeks to provide investment results that correspond to the price and yield performance of the Bloomberg 1-3 Month U.S. Treasury Bill Index. Provides pure short-term Treasury exposure with minimal credit risk.	Track the performance of U.S. Treasury floating-rate notes (FRNs).
Asset class	Fixed Income	Fixed Income
Inception date	05/25/2007	02/04/2014
Beta	—	-0.02
Last dividend	$0.27	$0.16
Ex-dividend date	05/01/2026	04/27/2026

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Quick verdict

BIL (SPDR Bloomberg 1-3 Month T-Bill ETF) and USFR (WisdomTree Floating Rate Treasury Fund) are both monthly-pay dividend ETFs, but they take different approaches.

USFR offers the higher yield at 3.60% vs 3.50% for BIL. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

BIL is cheaper with an expense ratio of 0.14% compared to 0.15%.

They track different benchmarks: BIL is linked to Bloomberg 1-3 Month U.S. Treasury Bill Index while USFR tracks Bloomberg U.S. Treasury Floating Rate Bond Index, which means their performance drivers differ.

BIL is the larger fund by assets ($46.4B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, BIL would generate roughly $29.17/month, while USFR would produce $30.00/month, at current distribution rates. Both pay monthly distributions.

BIL yield3.50%

USFR yield3.60%

Monthly diff on $10K$0.83

Cost & efficiency

Over 10 years on $10,000, BIL would cost approximately $140 in fees vs $150 for USFR (simplified, not compounded). The $10.00 difference may be offset by yield or performance.

BIL ER0.14%

USFR ER0.15%

Strategy & risk

BIL tracks Bloomberg 1-3 Month U.S. Treasury Bill Index with a money market approach, while USFR tracks Bloomberg U.S. Treasury Floating Rate Bond Index using a bonds strategy.

BIL beta—

USFR beta-0.02

Fund details

BIL is managed by State Street (launched 05/25/2007) with $46.4B in assets. USFR is managed by WisdomTree (launched 02/04/2014) with $17.0B in assets.

BIL AUM$46.4B

USFR AUM$17.0B

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Frequently asked questions

Is BIL or USFR better for dividend income?

It depends on your goals. USFR currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between BIL and USFR?

BIL (SPDR Bloomberg 1-3 Month T-Bill ETF) tracks Bloomberg 1-3 Month U.S. Treasury Bill Index with a money market strategy, while USFR (WisdomTree Floating Rate Treasury Fund) tracks Bloomberg U.S. Treasury Floating Rate Bond Index with a bonds approach. They are issued by State Street and WisdomTree respectively.

Can I hold both BIL and USFR?

Yes. Many income investors hold both to diversify across different strategies and underlying indexes. This can reduce concentration risk while maintaining a strong income stream.

Which has lower fees, BIL or USFR?

BIL has an expense ratio of 0.14% while USFR charges 0.15%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in BIL vs USFR generate?

At current rates, $10,000 in BIL would generate roughly $29.17 per month ($350.00 annually). The same in USFR would produce about $30.00 per month ($360.00 annually).

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BIL vs USFR — at a glance

Generated April 2026 from current fund data.

Overview

BIL and USFR are both ultra-short Treasury funds, but they serve different roles in a fixed-income portfolio. BIL holds Treasury bills with maturities between one and three months, while USFR holds floating-rate Treasury notes that reset periodically based on short-term rates. Both carry virtually no credit risk and offer similar yields around 3.5–3.6%, but their interest-rate sensitivity and duration characteristics differ meaningfully.

How they differ

The core distinction is maturity and rate sensitivity. BIL invests in bills maturing in one to three months, giving it near-zero duration and near-zero price volatility (52-week range: $91.26–$91.78). USFR holds longer-dated floating-rate notes, which reset their coupons as rates change, providing slightly more yield cushion if rates fall but also carrying modest duration risk (52-week range: $50.23–$50.49). Both charge low expense ratios—BIL at 0.14% and USFR at 0.15%—but BIL has substantially larger assets under management at $50 billion versus USFR's $17.6 billion. The yield difference is negligible: BIL's 3.53% distribution rate versus USFR's 3.61%. BIL's monthly distributions are sized at $0.26 per share versus USFR's $0.15, reflecting different share prices and underlying valuations rather than fundamentally different income streams.

Who each is best for

BIL: Conservative investors seeking maximum stability and liquidity, including those building a cash-equivalent core holding or deploying funds into volatile markets. Ideal for short-term reservoirs and risk-averse bond allocations.

USFR: Investors with a one- to three-year time horizon who want slightly higher yield than money-market funds without committing to traditional fixed-rate bonds. Works well for those who expect rates to remain stable or decline modestly.

Key risks to know

Interest rate risk: BIL is virtually immune to rate moves due to short maturity. USFR has floating-rate coupons, but longer duration still exposes it to modest price decline if rates spike unexpectedly.

Reinvestment risk: BIL's one-to-three-month bills roll frequently, meaning investors face reinvestment at lower yields if rates drop. USFR's floating-rate structure mitigates this.

Liquidity and scale: BIL's $50 billion AUM ensures deep secondary-market liquidity. USFR's $17.6 billion is substantial but notably smaller, potentially widening bid-ask spreads during stressed markets.

Basis risk: Both track indices closely, but USFR's floating-rate note index is less widely held and may experience periodic tracking differences versus BIL's Treasury-bill benchmark.

Bottom line

If you need a true cash substitute with zero volatility and instant liquidity, BIL is the cleaner choice. If you can tolerate modest price fluctuation and have a slightly longer holding period, USFR's floating-rate structure offers comparable yield with a hedge against falling rates. Neither fund is suitable as a long-term growth holding—they're tools for parking capital safely in a low-rate environment. Past performance doesn't predict future returns; both depend on the path of short-term Treasury yields and monetary policy.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.