# USFR alternatives: 6 similar ETFs compared

> ETFs similar to USFR, closest first, with each fund's fee, what it tracks, and returns and worst drops on the same dates as USFR. Updated daily.

The ETFs most like USFR are BIL, SGOV and TFLO. BIL, SGOV and TFLO hold US government bills and notes that pay back within months, so the price barely moves, like USFR. SGOV costs less: 0.09% a year against 0.15%.

Written by [the Tactfolio research team](https://tactfolio.com/about/editorial-policy). Fund facts checked October 17, 2026. Prices through October 16, 2026.

## Key points

- 6 funds can stand in for USFR: 4 of the same kind and 2 related funds.
- USFR charges 0.15% a year (about $15 on $10,000). The cheapest alternative here, VGSH, charges 0.03%.
- BIL moved most like USFR: a daily correlation of 0.33 over about the last five years.
- Returns and drops for each pair use the same dates for both funds.

## 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.

| ETF | How close | Yearly fee | Fee on $10,000 | Tracks |
| --- | --- | --- | --- | --- |
| **USFR** | This fund | 0.15% | $15 | Bloomberg U.S. Treasury Floating Rate Bond Index |
| [BIL](https://tactfolio.com/etf/BIL.md) | Same kind of fund | 0.1353% | $13.53 | Bloomberg 1-3 Month U.S. Treasury Bill Index |
| [SGOV](https://tactfolio.com/etf/SGOV.md) | Same kind of fund | 0.09% | $9 | ICE 0-3 Month US Treasury Securities Index |
| [TFLO](https://tactfolio.com/etf/TFLO.md) | Same kind of fund | 0.15% | $15 | Bloomberg U.S. Treasury Floating Rate Index |
| [SHV](https://tactfolio.com/etf/SHV.md) | Same kind of fund | 0.15% | $15 | ICE Short US Treasury Securities Index |
| [SHY](https://tactfolio.com/etf/SHY.md) | Related fund | 0.15% | $15 | ICE U.S. Treasury 1-3 Year Bond Index |
| [VGSH](https://tactfolio.com/etf/VGSH.md) | Related fund | 0.03% | $3 | Bloomberg US Treasury 1-3 Year Bond Index |

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.

| ETF | Moves with USFR | Per year | USFR per year | Worst drop | USFR worst drop | Since |
| --- | --- | --- | --- | --- | --- | --- |
| [BIL](https://tactfolio.com/etf/BIL.md) | 0.33 | 1.8% | 2.0% | −0.2% | −2.2% | February 2014 |
| [SGOV](https://tactfolio.com/etf/SGOV.md) | 0.30 | 3.0% | 3.0% | 0.0% | −0.4% | June 2020 |
| [TFLO](https://tactfolio.com/etf/TFLO.md) | 0.30 | 2.0% | 2.0% | −5.0% | −2.2% | February 2014 |
| [SHV](https://tactfolio.com/etf/SHV.md) | 0.28 | 1.9% | 2.0% | −0.4% | −2.2% | February 2014 |
| [SHY](https://tactfolio.com/etf/SHY.md) | 0.03 | 1.5% | 2.0% | −5.7% | −2.2% | February 2014 |
| [VGSH](https://tactfolio.com/etf/VGSH.md) | 0.02 | 1.5% | 2.0% | −5.7% | −2.2% | February 2014 |

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](https://tactfolio.com/etf/BIL.md) 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](https://tactfolio.com/etf/SGOV.md) 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](https://tactfolio.com/etf/TFLO.md) 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](https://tactfolio.com/etf/SHV.md) 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](https://tactfolio.com/etf/SHY.md) 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](https://tactfolio.com/etf/VGSH.md) 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](https://tactfolio.com/etf/BIL.md), State Street SPDR Bloomberg 1-3 Month T-Bill ETF (same kind of fund, 0.1353% a year)
- **iShares (BlackRock):** [SGOV](https://tactfolio.com/etf/SGOV.md), iShares 0-3 Month Treasury Bond ETF (same kind of fund, 0.09% a year)
- **Vanguard:** [VGSH](https://tactfolio.com/etf/VGSH.md), 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](https://www.irs.gov/publications/p550).

## 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](https://tactfolio.com/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](https://tactfolio.com/docs/backtests.md) for more on these measures.

## Research and test it

- [Tactical asset allocation](https://tactfolio.com/learn/tactical-asset-allocation): What tactical asset allocation is, how it differs from strategic allocation, and what Faber's model did in 2008 and after, with dated backtest figures.
- [Trend following](https://tactfolio.com/learn/trend-following): What trend following is, the research back to 1880, five classic ETF trend rules with dated backtests, and the whipsaws and flat years that come with it.
- [ETF screener](https://tactfolio.com/screener.md): A free ETF screener for 162 US-listed funds. Filter by type, issuer and fee, sort by returns or worst drop, and compare funds side by side.
- [ETF expense ratio](https://tactfolio.com/learn/etf-expense-ratio): What an ETF expense ratio is, how the fund charges it, and how 0.03% vs 1% adds up over 10 and 30 years, with real fund examples.
- [Backtest a portfolio](https://tactfolio.com/trading-tools/backtest-portfolio): Backtest a portfolio of US stocks and ETFs. Enter tickers and shares, pick when to rebalance, and get the results with a link to share.
- [Backtesting](https://tactfolio.com/backtesting): Free backtesting software for stocks, ETFs, and crypto perps.

## Common questions

### What ETF is most similar to USFR?

BIL is the closest. 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. Over about the last five years they often moved in different ways.

### Is there a cheaper alternative to USFR?

Yes. VGSH charges 0.03% a year, SGOV charges 0.09% a year and BIL charges 0.1353% a year, against 0.15% for USFR. On $10,000 that is about $3 a year instead of $15.

### Is USFR or BIL better?

Neither is better for everyone. From February 2014 to October 2026, USFR returned about 2.0% a year and BIL returned about 1.8% a year. USFR charges 0.15% a year and BIL charges 0.1353%. Past returns do not tell you what comes next.

### What if I had put $10,000 in USFR 10 years ago?

It would have grown to about $12,813 by October 16, 2026, with dividends reinvested. That is about 2.5% a year. Past returns do not tell you what comes next.

## Sources

- [WisdomTree: WisdomTree Floating Rate Treasury Fund fund page](https://www.sec.gov/Archives/edgar/data/1350487/000121465926012371/usfr926497k.htm)
- [SPDR (State Street): State Street SPDR Bloomberg 1-3 Month T-Bill ETF fund page](https://www.ssga.com/us/en/intermediary/etfs/state-street-spdr-bloomberg-1-3-month-t-bill-etf-bil)
- [iShares (BlackRock): iShares 0-3 Month Treasury Bond ETF fund page](https://www.ishares.com/us/products/314116/ishares-0-3-month-treasury-bond-etf)
- [iShares (BlackRock): iShares Treasury Floating Rate Bond ETF fund page](https://www.ishares.com/us/products/260652/ishares-treasury-floating-rate-bond-etf)
- [iShares (BlackRock): iShares 0-1 Year Treasury Bond ETF fund page](https://www.ishares.com/us/products/239466/ishares-01-year-treasury-bond-etf)
- [iShares (BlackRock): iShares 1-3 Year Treasury Bond ETF fund page](https://www.ishares.com/us/products/239452/ishares-1-3-year-treasury-bond-etf)
- [Vanguard: Vanguard Short-Term Treasury ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/vgsh)
- [IRS Publication 550: wash sales](https://www.irs.gov/publications/p550)

> Not financial advice. Tactfolio is a research and automation tool. It is not a broker or a financial adviser. This page is for education only. Backtests are hypothetical. They show how rules would have done on past prices, not how they will do. All investing involves risk, including losing the money you put in.