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

What Are Smart Beta ETFs?

For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.

Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.

There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.

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

XBIL is managed by Us Benchmark Series, and this fund has amassed over $756.41 million, which makes it one of the average sized ETFs in the Government Bond ETFs. Before fees and expenses, XBIL 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

Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.

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

The fund has a 12-month trailing dividend yield of 4.32%.

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.

The top 10 holdings account for about 100% of total assets under management.

Performance and Risk

The ETF has added about 0.26% and is up roughly 3.99% so far this year and in the past one year (as of 02/03/2026), respectively. XBIL has traded between $49.99 and $50.21 during this last 52-week period.

The ETF has a beta of 0.00 and standard deviation of 0.37% for the trailing three-year period. With about 2 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 $42.27 billion in assets, iShares 0-3 Month Treasury Bond ETF has $70.75 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.