T-bill ladder strategy
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There is A Weekly Income T-Bill ETF That No One Knows About, But It's Beating Money Markets
247Wallst· 2026-03-30 18:47
Core Viewpoint - The Roundhill Weekly T-Bill ETF (WEEK) offers a unique investment structure with weekly income, combining a T-bill ladder strategy with lower fees, making it a competitive alternative to traditional money market funds [2][11]. Group 1: ETF Structure and Performance - WEEK provides a rare structure with weekly income, allowing for frequent and predictable cash flow [2]. - The ETF is actively managed and functions as a T-bill ladder, where matured T-bills' principal is reinvested to maintain the ladder [9]. - WEEK has a current asset under management of approximately $153 million, indicating it is still relatively small in the market [7]. Group 2: Cost and Yield Comparison - WEEK charges a low expense ratio of 0.19%, significantly lower than the 0.42% expense ratio of the Fidelity Money Market Fund, which currently offers a 3.37% seven-day SEC yield [11][6]. - The current yield for WEEK is around 3.42% for a 30-day SEC yield, making it a more attractive option compared to traditional money market funds [11]. Group 3: Investment Use Cases - WEEK can serve as a Treasury allocation, cash alternative, or income tool, particularly for investors looking for consistent cash flow [3][12]. - It can also act as a replacement for high-yield savings accounts, providing capital preservation with income tied to prevailing rates, while the income is exempt from state income taxes [13]. - The ETF highlights the potential benefits of exploring smaller, niche products beyond the largest ETF issuers [14].