Share-split context: A reverse split was recorded on Nov 30, 2017 with coefficient 0.5. A reverse split combines multiple old shares into fewer new shares and mechanically raises the quoted price per share. That mechanical increase does not restore lost investment value. The returns in this report are already split-adjusted, while reverse-split history remains a separate structural warning.

ETF Education Report: BIL

What this ETF is trying to do

The STATE STREET(R) SPDR(R) BLOOMBERG 1-3 MONTH T-BILL ETF (ticker: BIL) is an exchange-traded fund. Based on its name, it focuses on very short-term government debt, known as T-bills.

What the numbers show

When looking at this ETF, it is important to understand the difference between "price return" and "total return."

• Price Return: This only measures how much the share price itself has changed.

• Total Return: This includes both the change in share price AND the cash distributions (dividends) paid out to investors.

For BIL, the numbers show a difference between these two:

• Year-to-Date (YTD): The price return is approximately 8.75%, while the total return is higher at approximately 2.75%.

• One Year: The price return was approximately -5.46%, but the total return was positive at approximately 3.67%.

• Three Year: The price return was approximately -7.65%, while the total return was much higher at approximately 13.94%.

This ETF has a history of a reverse split. In a reverse split, multiple old shares are combined into fewer new shares. This causes the quoted per-share price to rise mechanically, but it does not increase the actual value of the investment.

Income and distribution explanation

This ETF provides cash distributions to investors. The distribution yield is approximately 3.67%. This means the amount of cash paid out is about 3.67% relative to the current share price of $91.46. These distributions usually happen monthly, with 12 payments recorded over the last year.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value, which is the actual value of the assets held by the fund. While a falling share price can sometimes look like erosion, it is not the same thing.

For BIL, the erosion-risk score is 94, which is labeled as "Stable / sideways." The erosion severity is described as "good," and there is no severe erosion-risk flag present.

Pros

• The fund has a history of providing total returns that are higher than its share-price returns.

• It has a "good" erosion-risk rating, suggesting the price movement is relatively stable.

• It provides regular monthly income through distributions.

Cons

• The share-price return (price return) has been negative over the one-year and three-year periods.

• Investors must look at total return rather than just price to see the full picture of performance.

Beginner takeaway

When looking at BIL, remember that the share price might go down even if the total return is positive. This happens because the cash distributions help make up for the price changes. Always check both the price return and the total return to understand how the fund is performing.