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Is F/m US Treasury 6 Month Bill ETF (XBIL) a Strong ETF Right Now?

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Designed to provide broad exposure to the Government Bond ETFs category of the market, the F/m US Treasury 6 Month Bill ETF (XBIL - Free Report) is a smart beta exchange traded fund launched on 03/07/2023.

What Are Smart Beta ETFs?

The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.

Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.

On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.

This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.

Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.

Fund Sponsor & Index

The fund is managed by Us Benchmark Series. XBIL has been able to amass assets over $801.96 million, making it one of the average sized ETFs in the Government Bond ETFs. XBIL seeks to match the performance of the BBG US TRSR BELLWETHER 6M TR USD UNHG ID before fees and expenses.

The Bloomberg US Treasury Bellwether 6M Total Return USD Unhedged Index tracks the most recent or on-the-run 6 Month US Treasury security and is rebalanced on the last day of each month.

Cost & Other Expenses

For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.

With on par with most peer products in the space, this ETF has annual operating expenses of 0.15%.

It has a 12-month trailing dividend yield of 4.22%.

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

When you look at individual holdings, United States Treasury Bill 02/26/2026 (912797RU3) accounts for about 75.45% of the fund's total assets, followed by United States Treasury Bill 03/05/2026 (912797RV1) and Cash & Other (Cash&Other).

XBIL's top 10 holdings account for about 100% of its total assets under management.

Performance and Risk

So far this year, XBIL return is roughly 3.07%, and it's up approximately 4.22% in the last one year (as of 09/29/2025). During this past 52-week period, the fund has traded between $49.99 and $50.21.

The fund has a beta of 0.00 and standard deviation of 0.38% for the trailing three-year period. With about 3 holdings, it has more concentrated exposure than peers .

Alternatives

F/m US Treasury 6 Month Bill ETF is a reasonable option for investors seeking to outperform the Government Bond ETFs segment of the market. However, there are other ETFs in the space which investors could consider.

SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) tracks Bloomberg Barclays 1-3 Month U.S. Treasury Bill Index and the iShares 0-3 Month Treasury Bond ETF (SGOV) tracks ICE 0-3 MONTH US TREASURY SECURITIES IND. SPDR Bloomberg 1-3 Month T-Bill ETF has $42.21 billion in assets, iShares 0-3 Month Treasury Bond ETF has $57.85 billion. BIL has an expense ratio of 0.14% and SGOV changes 0.09%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Government Bond ETFs

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

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