US Treasury 12 Month Bill ETF’s management team is rated Average, but a solid investment process still helps this strategy retain its Morningstar Medalist Rating of Bronze. The portfolio maintains a sizable cost advantage over competitors, priced within the least expensive fee quintile among peers.  

 The strategy's effective investment philosophy earns it an Above Average Process Pillar rating. The team managing the passive strategy earns the strategy an Average People Pillar rating. The strategy's parent firm has some investor-friendly attributes, like modest portfolio manager turnover and overall attractive fees. As a result, the firm gets an Average Parent Pillar rating.

Analyst Rating

US Treasury 12 Month Bill ETF earns an Above Average Process Pillar rating. Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. The predominant contributor to the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. The firm's five-year retention rate of 100% also underpins the process. Lastly, the process is limited by the experience of the management team, which averages seven years at this fund.

The investment strategy as stated in the fund's prospectus is: 

The investment seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the ICE BofA US 1-Year Treasury Bill Index.  Under normal market conditions and the Adviser seeks to achieve the fund’s investment objective by investing at least 80% of the UST 12 Month Bill Fund’s net assets (plus any borrowings for investment purposes) in the component securities of the index. The underlying index is comprised of a single issue purchased at the beginning of the month and held for a full month.  

 This strategy has a 4.9% 12-month yield, higher than its average peer's 3.7%. In addition, it has a 4.9% 30-day SEC yield (a standardized, point-in-time estimate of the fund’s future income return). Typically, higher yields come at the cost of higher credit risk.

Above Average

Process

North Slope’s team receives An Average People Pillar rating. The main contributor to the rating is the firm's five-year retention rate of 100%. The combined average five-year excess return of each manager also contributes to the rating. It implies that the funds they manage have outperformed the average manager. Lastly, the rating is limited by the experience of the management team, which averages seven years at this fund.

Average

People

Even though North Slope only has a one-year track record, it has shown to be an industry-standard steward, warranting an Average Parent Pillar rating. North Slope currently runs 10 vehicles, with a total of $4.31 billion under management and a roster of three portfolio managers.   

 A pocket of strength is the firm’s economical fees on its open-end and exchange-traded funds, demonstrating a firmwide commitment to minimizing costs and maximizing investors’ returns. The average net expense ratio of its funds is within the cheapest quintile of firms.  

 To retain an Average rating, North Slope needs to maintain a consistent track record of positive investor experience.

Parent

US Treasury 12 Month Bill ETF

OBIL is a passively managed, single-bond fund that invests in the most recently issued, on-the-run, 12-month US Treasury bill. The fund is designed for those specifically required to track the 12-month tenor on the yield curve. 

OBIL offers an attractive “cash-like” alternative to traditional hedges, given the current high yield environment and expectations of future Fed rate cuts. The start of the Fed tightening cycle has suppressed volatility and traditional hedging strategies, with traditional hedges (options, inverse funds) performing poorly. The US Treasury 12 Month Bill ETF offers a high duration and a better hedge compared to buying a 1-year T-Bill outright.

OBIL: When Sitting In Cash Is A Hedge

The US Treasury 12 Month Bill ETF allows investors to access T-Bills without opening an account with the Treasury. The OBIL ETF provides consistent income with low volatility through its focus on the on-the-run 12-month T-Bill. The fund offers stable returns, high liquidity, and zero credit risk, but is susceptible to interest rate risk and lacks diversification.

OBIL: Good Vehicle But Duration Makes More Sense

Treasury bills are considered a decent cash parking vehicle by investors due to their short term to maturity and backing by the US government. The US Treasury 12 Month Bill ETF aims to track the performance of the ICE BofA US 12-Month Treasury Bill Index. We examine this fund and tell you why we like it.

5.25% Yielding OBIL Is A Far Better Choice Than EDV, TLT, Or ZROZ

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WASHINGTON--( BUSINESS WIRE )--Today, The US Benchmark Series, a brand of F/m Investments (“F/m”), a $4 billion multi-boutique investment advisor based in Washington DC, is proud to announce the launch of the US Treasury 12 Month Bill ETF (Ticker “OBIL”).

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