A 0-3 month short-term ETF invests in very safe, ultra-short government debt like Treasury bills maturing in zero to three months. Top options include the iShares 0-3 Month Treasury Bond ETF (SGOV) for US dollars or the Global X 0-3 Month T-Bill ETF (CBIL) for Canadian investors. [1, 2]
Popular 0-3 Month ETFs
- SGOV: Focuses on ultra-short US Treasury bills.
- CBIL: Holds Canadian Treasury bills for local cash management.
Main Benefits
- Low Risk: Backed by stable government-issued short-term debt.
- High Liquidity: Easy to buy and sell like cash equivalents.
- Steady Yield: Earns current short-term interest rates. [1]
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Current Yield Comparison (August 2026)
ETF Ticker Currency 30-Day SEC / Gross Yield 12-Month Trailing Yield SGOV (iShares) USD 3.60% 3.74% VBIL (Vanguard) USD 3.62% 3.60% CBIL (Global X) CAD 2.50% 2.27%
TIPS (Treasury Inflation-Protected Securities) bond ETFs protect your investment from inflation by adjusting their principal value based on the Consumer Price Index. Key fund options include broad-market choices like the iShares TIPS Bond ETF (TIP) or short-term options like the iShares 0-5 Year TIPS Bond ETF (STIP). [1, 2, 3, 4, 5]
How TIPS ETFs Work- Inflation Hedge: The principal value goes up when inflation rises and goes down if there is deflation.
- Interest Rate Risk: Like regular bonds, ETF prices drop when interest rates go up. Short-term TIPS ETFs have less of this risk.
