UTWO vs. TBIL

Last updated Jun 25, 2026

UTWO (US Treasury 2 Year Note ETF) and TBIL (F/m US Treasury 3 Month Bill ETF) are both exchange-traded funds - UTWO is a Government Bonds fund tracking the ICE BofA Current 2 Year US Treasury Index - Benchmark TR Gross, while TBIL is a Ultrashort Bond fund tracking the Bloomberg US Treasury Bellwether 3M Total Return USD Unhedged Index. Both are passively managed. Over the past 3 years, UTWO returned 3.89%/yr vs 4.60%/yr for TBIL. At a 0.18 correlation, their price movements are largely independent. Both charge a 0.15% expense ratio.

Performance

UTWO vs. TBIL - Performance Comparison

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

Returns By Period

In the year-to-date period, UTWO achieves a 0.44% return, which is significantly lower than TBIL's 1.69% return.

UTWO

• 1D: 0.11%
• 1M: 0.27%
• YTD: 0.44%
• 6M: 0.57%
• 1Y: 2.74%
• 3Y*: 3.89%
• 5Y*: —
• 10Y*: —

TBIL

• 1D: 0.00%
• 1M: 0.28%
• YTD: 1.69%
• 6M: 1.76%
• 1Y: 3.87%
• 3Y*: 4.60%
• 5Y*: —
• 10Y*: —

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

UTWO vs. TBIL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
UTWO US Treasury 2 Year Note ETF	0.44%	4.79%	3.71%	3.45%	-0.84%
TBIL F/m US Treasury 3 Month Bill ETF	1.69%	4.19%	5.15%	5.12%	1.29%

Correlation

The correlation between UTWO and TBIL 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 9, 2022	0.18

Return for Risk

UTWO vs. TBIL — Risk / Return Rank

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

UTWO

UTWO Risk / Return Rank: 73
UTWO Sharpe Ratio Rank: 71
UTWO Sortino Ratio Rank: 81
UTWO Omega Ratio Rank: 77
UTWO Calmar Ratio Rank: 69
UTWO Martin Ratio Rank: 66

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

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.

UTWO vs. TBIL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for US Treasury 2 Year Note ETF (UTWO) and F/m US Treasury 3 Month Bill ETF (TBIL). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	UTWO	TBIL	Difference
Sharpe ratio: Return per unit of total volatility	2.00	13.64	-11.64
Sortino ratio: Return per unit of downside risk	3.17	57.49	-54.31
Omega ratio: Gain probability vs. loss probability	1.40	16.91	-15.51
Calmar ratio: Return relative to maximum drawdown	3.06	193.71	-190.65
Martin ratio: Return relative to average drawdown	10.66	975.63	-964.97

UTWO vs. TBIL - Sharpe Ratio Comparison

The current UTWO Sharpe Ratio is 2.00, which is lower than the TBIL Sharpe Ratio of 13.64. The chart below compares the historical Sharpe Ratios of UTWO and TBIL, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

UTWO vs. TBIL - Drawdown Comparison

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

Drawdown Indicators

	UTWO	TBIL	Difference
Max Drawdown Largest peak-to-trough decline	-2.04%	-0.10%	-1.94%
Max Drawdown (1Y) Largest decline over 1 year	-0.90%	-0.02%	-0.88%
Max Drawdown (3Y) Largest decline over 3 years	-1.08%	-0.02%	-1.06%
Current Drawdown Current decline from peak	-0.27%	0.00%	-0.27%
Average Drawdown Average peak-to-trough decline	-0.48%	-0.00%	-0.48%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.26%	0.00%	+0.26%

Volatility

UTWO vs. TBIL - Volatility Comparison

US Treasury 2 Year Note ETF (UTWO) has a higher volatility of 0.49% compared to F/m US Treasury 3 Month Bill ETF (TBIL) at 0.06%. This indicates that UTWO's price experiences larger fluctuations and is considered to be riskier than TBIL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	UTWO	TBIL	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.49%	0.06%	+0.43%
Volatility (6M) Calculated over the trailing 6-month period	1.01%	0.19%	+0.82%
Volatility (1Y) Calculated over the trailing 1-year period	1.37%	0.29%	+1.08%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.07%	0.32%	+1.75%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.07%	0.32%	+1.75%

UTWO vs. TBIL - Expense Ratio Comparison

Both UTWO and TBIL 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

UTWO vs. TBIL - Dividend Comparison

UTWO's dividend yield for the trailing twelve months is around 3.49%, less than TBIL's 3.81% yield.

Position	TTM	2025	2024	2023	2022
TBIL F/m US Treasury 3 Month Bill ETF	3.81%	4.07%	5.02%	5.00%	1.10%
UTWO US Treasury 2 Year Note ETF	3.49%	3.63%	4.22%	4.39%	1.22%

Frequently Asked Questions

Can I hold both UTWO and TBIL in my portfolio?

UTWO and TBIL 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, UTWO or TBIL?

UTWO has higher volatility (0.49%) compared to TBIL (0.06%). In terms of maximum drawdown, UTWO dropped -2.04% vs TBIL's -0.10%.

Which ETF is better, UTWO or TBIL?

On 3-year performance, TBIL leads with 4.60% vs 3.89% for UTWO. Both ETFs have the same 0.15% expense ratio. On volatility, TBIL has been the lower-risk option at 0.06%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, UTWO or TBIL?

Over the 3-year period, TBIL has performed better with a 4.60% return vs 3.89%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, UTWO or TBIL?

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

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

TBIL has the higher dividend yield at 3.81%, compared with 3.49% for UTWO.

What is the main difference between UTWO and TBIL?

UTWO is categorized as Government Bonds, while TBIL is Ultrashort Bond. UTWO tracks ICE BofA Current 2 Year US Treasury Index - Benchmark TR Gross, while TBIL tracks Bloomberg US Treasury Bellwether 3M Total Return USD Unhedged Index. They also come from different issuers: US Benchmark Series and F/m Investments.

Which has better risk-adjusted returns?

TBIL currently has the higher Sharpe Ratio (13.64 vs 2.00), 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.