The Horizons 0-3 Month U.S. T-Bill ETF (UBIL.U) and the Horizons 0-3 Month T-Bill ETF (CBIL) are two new ETFs recently launched by Horizons ETFs. UBIL.U tracks ultra-short maturity government bond issues from the U.S. government, while CBIL tracks Canadian government T-Bills.
T-Bills are considered a “risk-free” asset due to their low credit and interest rate risk. T-Bills are backed by the full faith and credit of the respective governments, which makes them a safe haven asset for investors. Additionally, T-Bills have a short maturity of three months or less, which makes them less sensitive to changes in interest rates.
UBIL.U is traded in U.S. dollars and charges a management fee of 0.12%, while CBIL is traded in Canadian dollars and charges a management fee of 0.10%. Both ETFs pay monthly interest with a target annual yield of 4.25% and 4.23%, respectively, which can change depending on prevailing interest rates in their respective countries.