TBIL vs. UTWO

Last updated Jun 4, 2026

TBIL (US Treasury 3 Month Bill ETF) and UTWO (US Treasury 2 Year Note ETF) are both exchange-traded funds - TBIL is a Ultrashort Bond fund tracking the ICE BofA US Treasury Bill 3 Month Index, while UTWO is a Government Bonds fund tracking the ICE BofA Current 2 Year US Treasury Index - Benchmark TR Gross. Both are passively managed. Over the past 3 years, TBIL returned 4.64%/yr vs 3.78%/yr for UTWO. At a 0.19 correlation, their price movements are largely independent. Both charge a 0.15% expense ratio.

Performance

TBIL vs. UTWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in US Treasury 3 Month Bill ETF (TBIL) and US Treasury 2 Year Note ETF (UTWO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TBIL achieves a 1.49% return, which is significantly higher than UTWO's 0.33% return.

TBIL

• 1D: 0.00%
• 1M: 0.30%
• YTD: 1.49%
• 6M: 1.78%
• 1Y: 3.93%
• 3Y*: 4.64%
• 5Y*: —
• 10Y*: —

UTWO

• 1D: -0.04%
• 1M: 0.07%
• YTD: 0.33%
• 6M: 0.63%
• 1Y: 3.13%
• 3Y*: 3.78%
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

TBIL vs. UTWO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
TBIL US Treasury 3 Month Bill ETF	1.49%	4.19%	5.15%	5.12%	1.30%
UTWO US Treasury 2 Year Note ETF	0.33%	4.79%	3.71%	3.45%	-0.81%

Correlation

The correlation between TBIL and UTWO is 0.21, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.21
Correlation (3Y) Calculated over the trailing 3-year period	0.17
Correlation (All Time) Calculated using the full available price history since Aug 10, 2022	0.19

Return for Risk

TBIL vs. UTWO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

TBIL

TBIL Risk / Return Rank: 100
TBIL Sharpe Ratio Rank: 100
TBIL Sortino Ratio Rank: 100
TBIL Omega Ratio Rank: 100
TBIL Calmar Ratio Rank: 100
TBIL Martin Ratio Rank: 100

UTWO

UTWO Risk / Return Rank: 75
UTWO Sharpe Ratio Rank: 71
UTWO Sortino Ratio Rank: 85
UTWO Omega Ratio Rank: 79
UTWO Calmar Ratio Rank: 70
UTWO Martin Ratio Rank: 70

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

TBIL vs. UTWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for US Treasury 3 Month Bill ETF (TBIL) and US Treasury 2 Year Note ETF (UTWO). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	TBIL	UTWO	Difference
Sharpe ratio Return per unit of total volatility	13.78	2.33	+11.45
Sortino ratio Return per unit of downside risk	58.40	3.84	+54.55
Omega ratio Gain probability vs. loss probability	17.16	1.47	+15.68
Calmar ratio Return relative to maximum drawdown	196.84	3.50	+193.34
Martin ratio Return relative to average drawdown	934.41	12.89	+921.52
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TBIL vs. UTWO - Sharpe Ratio Comparison

The current TBIL Sharpe Ratio is 13.78, which is higher than the UTWO Sharpe Ratio of 2.33. The chart below compares the historical Sharpe Ratios of TBIL and UTWO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	TBIL	UTWO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	13.78	2.33	+11.45
Sharpe Ratio (All Time) Calculated using the full available price history	14.07	1.45	+12.62

Drawdowns

TBIL vs. UTWO - Drawdown Comparison

The maximum TBIL drawdown since its inception was -0.10%, smaller than the maximum UTWO drawdown of -2.04%. Use the drawdown chart below to compare losses from any high point for TBIL and UTWO.

Drawdown Indicators

	TBIL	UTWO	Difference
Max Drawdown Largest peak-to-trough decline	-0.10%	-2.04%	+1.94%
Max Drawdown (1Y) Largest decline over 1 year	-0.02%	-0.90%	+0.88%
Max Drawdown (3Y) Largest decline over 3 years	-0.02%	-1.08%	+1.06%
Current Drawdown Current decline from peak	0.00%	-0.38%	+0.38%
Average Drawdown Average peak-to-trough decline	-0.00%	-0.49%	+0.49%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.00%	0.24%	-0.24%

Volatility

TBIL vs. UTWO - Volatility Comparison

The current volatility for US Treasury 3 Month Bill ETF (TBIL) is 0.08%, while US Treasury 2 Year Note ETF (UTWO) has a volatility of 0.36%. This indicates that TBIL experiences smaller price fluctuations and is considered to be less risky than UTWO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TBIL	UTWO	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.08%	0.36%	-0.28%
Volatility (6M) Calculated over the trailing 6-month period	0.19%	0.92%	-0.73%
Volatility (1Y) Calculated over the trailing 1-year period	0.29%	1.35%	-1.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.32%	2.07%	-1.75%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.32%	2.07%	-1.75%

TBIL vs. UTWO - Expense Ratio Comparison

Both TBIL and UTWO have an expense ratio of 0.15%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

TBIL vs. UTWO - Dividend Comparison

TBIL's dividend yield for the trailing twelve months is around 3.82%, more than UTWO's 3.50% yield.

Position	TTM	2025	2024	2023	2022
TBIL US Treasury 3 Month Bill ETF	3.82%	4.07%	5.02%	5.00%	1.10%
UTWO US Treasury 2 Year Note ETF	3.50%	3.63%	4.22%	4.39%	1.22%

Frequently Asked Questions

Can I hold both TBIL and UTWO in my portfolio?

TBIL and UTWO have a correlation of 0.21, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TBIL or UTWO?

UTWO has higher volatility (0.36%) compared to TBIL (0.08%). In terms of maximum drawdown, TBIL dropped -0.10% vs UTWO's -2.04%.

Which ETF is better, TBIL or UTWO?

On 3-year performance, TBIL leads with 4.64% vs 3.78% for UTWO. Both ETFs have the same 0.15% expense ratio. On volatility, TBIL has been the lower-risk option at 0.08%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TBIL or UTWO?

Over the 3-year period, TBIL has performed better with a 4.64% return vs 3.78%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TBIL or UTWO?

TBIL and UTWO have the same expense ratio: 0.15% per year.

Which ETF pays a higher dividend yield, TBIL or UTWO?

TBIL has the higher dividend yield at 3.82%, compared with 3.50% for UTWO.

What is the main difference between TBIL and UTWO?

TBIL is categorized as Ultrashort Bond, while UTWO is Government Bonds. TBIL tracks ICE BofA US Treasury Bill 3 Month Index, while UTWO tracks ICE BofA Current 2 Year US Treasury Index - Benchmark TR Gross.

Which has better risk-adjusted returns?

TBIL currently has the higher Sharpe Ratio (13.78 vs 2.33), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.