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

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

What Are Smart Beta ETFs?

Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.

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

If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.

These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.

While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.

Fund Sponsor & Index

The fund is sponsored by Us Benchmark Series. It has amassed assets over $755.66 million, making it one of the average sized ETFs in the Government Bond ETFs. XBIL, before fees and expenses, seeks to match the performance of the BBG US TRSR BELLWETHER 6M TR USD UNHG ID.

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.

Operating expenses on an annual basis are 0.15% for XBIL, making it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 4.06%.

Sector Exposure and Top Holdings

ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

Looking at individual holdings, United States Treasury Bill 04/30/2026 (912797SN8) accounts for about 68.96% of total assets, followed by United States Treasury Bill 05/07/2026 (912797SP3) and Cash & Other (Cash&Other).

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

Performance and Risk

The ETF has added roughly 3.77% so far this year and is up about 4.17% in the last one year (as of 12/04/2025). In the past 52-week period, it has traded between $49.99 and $50.21

XBIL 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.

State Street 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. State Street SPDR Bloomberg 1-3 Month T-Bill ETF has $43.07 billion in assets, iShares 0-3 Month Treasury Bond ETF has $63.23 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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