BUFR returned 14% over the past year with a built-in 10% downside buffer, while BIL offered only a 4% yield and zero equity upside.
SPY returned 20% over the same period, meaning nervous investors who parked in BIL forfeited roughly 16 percentage points of compounding in twelve months.
A partial rotation that moves a quarter to half of a BIL position into BUFR restores equity participation without fully abandoning the safety of the cash trade.
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Investors who rotated into SPDR Bloomberg 1-3 Month T-Bill ETF (NYSEARCA:BIL) during the March 2026 volatility spike know its appeal: a steady 4%-ish yield, no drawdowns, and peace of mind. BIL has become the default parking spot for nervous equity money, and with the 10-year Treasury at 4.56% and near the 96th percentile of its 12-month range, the cash trade looks defensible. The problem is that BIL solved yesterday's problem. With the VIX back at 15.03, in the lower 10th percentile of the past year, sitting entirely in T-bills carries a different risk: missing the recovery. A middle path exists, and it wears the ticker BUFR.
#investors #nervous
SPY returned 20% over the same period, meaning nervous investors who parked in BIL forfeited roughly 16 percentage points of compounding in twelve months.
A partial rotation that moves a quarter to half of a BIL position into BUFR restores equity participation without fully abandoning the safety of the cash trade.
Don't wait: the ****** yst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
Investors who rotated into SPDR Bloomberg 1-3 Month T-Bill ETF (NYSEARCA:BIL) during the March 2026 volatility spike know its appeal: a steady 4%-ish yield, no drawdowns, and peace of mind. BIL has become the default parking spot for nervous equity money, and with the 10-year Treasury at 4.56% and near the 96th percentile of its 12-month range, the cash trade looks defensible. The problem is that BIL solved yesterday's problem. With the VIX back at 15.03, in the lower 10th percentile of the past year, sitting entirely in T-bills carries a different risk: missing the recovery. A middle path exists, and it wears the ticker BUFR.
#investors #nervous
3 months ago
