USFR alternatives and similar ETFs

USFR alternatives at a glance#

Each fund below can stand in for USFR, closest first. “Same kind” funds hold the same kind of bonds through a different index. “Related” funds make a different bet that often moves the same way.

Fees come from each fund company, checked on the dates shown on each fund’s page.

How USFR and its alternatives did over the same dates#

Each row measures the alternative and USFR on the days both traded, so neither gets a head start. Correlation shows how closely their daily moves matched over about the last five years. A value of 1 means they always moved together.

Prices through October 16, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.

Each USFR alternative, compared#

BIL: State Street SPDR Bloomberg 1-3 Month T-Bill ETF#

BIL also holds US government bills and notes that pay back within months, so the price barely moves. It tracks the Bloomberg 1-3 Month U.S. Treasury Bill Index, while USFR tracks the Bloomberg U.S. Treasury Floating Rate Bond Index.

It charges 0.1353% a year, about $13.53 on $10,000, against $15 for USFR. It held 34 holdings, against 5 for USFR.

From February 2014 to October 2026, BIL returned about 1.8% a year and USFR returned about 2.0% a year. Over about the last five years they often moved in different ways (correlation 0.33).

Read the BIL fund page for its returns by year and worst drop.

SGOV: iShares 0-3 Month Treasury Bond ETF#

SGOV also holds US government bills and notes that pay back within months, so the price barely moves. It tracks the ICE 0-3 Month US Treasury Securities Index, while USFR tracks the Bloomberg U.S. Treasury Floating Rate Bond Index.

It charges 0.09% a year, about $9 on $10,000, against $15 for USFR.

From June 2020 to October 2026, SGOV returned about 3.0% a year and USFR returned about 3.0% a year. Over about the last five years they often moved in different ways (correlation 0.30).

Read the SGOV fund page for its returns by year and worst drop.

TFLO: iShares Treasury Floating Rate Bond ETF#

TFLO also holds US government bills and notes that pay back within months, so the price barely moves. It tracks the Bloomberg U.S. Treasury Floating Rate Index, while USFR tracks the Bloomberg U.S. Treasury Floating Rate Bond Index.

It charges 0.15% a year, about $15 on $10,000, against $15 for USFR. It held 8 holdings, against 5 for USFR.

From February 2014 to October 2026, TFLO returned about 2.0% a year and USFR returned about 2.0% a year. Over about the last five years they often moved in different ways (correlation 0.30).

Read the TFLO fund page for its returns by year and worst drop.

SHV: iShares 0-1 Year Treasury Bond ETF#

SHV also holds US government bills and notes that pay back within months, so the price barely moves. It tracks the ICE Short US Treasury Securities Index, while USFR tracks the Bloomberg U.S. Treasury Floating Rate Bond Index.

It charges 0.15% a year, about $15 on $10,000, against $15 for USFR. It held 19 holdings, against 5 for USFR.

From February 2014 to October 2026, SHV returned about 1.9% a year and USFR returned about 2.0% a year. Over about the last five years they often moved in different ways (correlation 0.28).

Read the SHV fund page for its returns by year and worst drop.

SHY: iShares 1-3 Year Treasury Bond ETF#

SHY is a looser match. It holds US government bonds that pay back in 1 to 3 years, while USFR holds US government bills and notes that pay back within months, so the price barely moves.

It charges 0.15% a year, about $15 on $10,000, against $15 for USFR. It held 90 holdings, against 5 for USFR.

From February 2014 to October 2026, SHY returned about 1.5% a year and USFR returned about 2.0% a year. Over about the last five years they often moved in different ways (correlation 0.03).

Read the SHY fund page for its returns by year and worst drop.

VGSH: Vanguard Short-Term Treasury ETF#

VGSH is a looser match. It holds US government bonds that pay back in 1 to 3 years, while USFR holds US government bills and notes that pay back within months, so the price barely moves.

It charges 0.03% a year, about $3 on $10,000, against $15 for USFR. It held 92 holdings, against 5 for USFR.

From February 2014 to October 2026, VGSH returned about 1.5% a year and USFR returned about 2.0% a year. Over about the last five years they often moved in different ways (correlation 0.02).

Read the VGSH fund page for its returns by year and worst drop.

USFR versions from other fund companies#

Some people keep all their funds with one company. Here is the closest fund to USFR from each other company on this page:

• SPDR (State Street): BIL, State Street SPDR Bloomberg 1-3 Month T-Bill ETF (same kind of fund, 0.1353% a year)
• iShares (BlackRock): SGOV, iShares 0-3 Month Treasury Bond ETF (same kind of fund, 0.09% a year)
• Vanguard: VGSH, Vanguard Short-Term Treasury ETF (related fund, 0.03% a year)

Most brokers let you buy any ETF, whoever runs it. Mutual fund versions, such as a fund company’s index mutual fund, are not listed here.

How to choose between USFR and its alternatives#

• What it tracks. A fund on the same index holds the same bonds. A different index can mean different weights, more or fewer holdings, or a different mix.
• The fee. The difference is often small. On $10,000, USFR costs about $15 a year. VGSH costs about $3.
• History. An older fund has been through more bad markets, so you can see how far it fell.
• What you already own. Two funds that move together add little variety. A fund with a low correlation behaves more on its own.

Swapping USFR to harvest a tax loss#

Some investors sell a fund at a loss to lower their taxes, then buy a similar fund so they stay invested. This is called tax-loss harvesting.

The IRS wash sale rule blocks the loss if you buy a “substantially identical” security within 30 days before or after the sale. The IRS has not said exactly when two funds count. Funds on the same index are more likely to. Funds on a different index, such as BIL, SGOV or TFLO, are less likely to.

Ask a tax professional before you rely on this. Read the IRS rules in Publication 550.

Test USFR and its alternatives in a backtest#

Tactfolio is a platform where you build rules-based investing strategies, backtest them on decades of real prices, share them, and run them automatically in your own Alpaca account. Open the builder, add USFR and BIL, and see how each would have done on the same dates, or how a mix of both would have done.

The details#

Alternatives are picked from facts, not from returns. First come funds that track the same index as USFR. Then come funds that hold the same kind of bonds through another index. Last come funds from a close category that make a different bet. Leveraged funds are only listed as alternatives to other leveraged funds.

Within each group, the funds whose daily returns moved most like USFR over about the last five years come first. Returns and worst drops use Tactfolio’s stored daily prices, adjusted for splits, with dividends reinvested. Each alternative is measured with USFR only on days both traded. Read what a backtest simulates for more on these measures.