Two of the market's most popular income ETFs compared side-by-side. See which one fits your yield strategy.
What this means: ADP is ratedTier 2 (Yield Plus)while BIL is ratedTier 1 (Cornerstone).BIL is structurally lower risk than ADP.
| Metric | ADP | BIL |
|---|---|---|
| Total Return (1Y) | -15.70% | 4.59% |
| NAV Change (1Y) | -18.46% | -0.19% |
| Max Drawdown | -24.74% | -0.54% |
| Beta | - | - |
* Returns include dividend reinvestment. Drawdown calculates peak-to-trough decline over trailing 12 months.
ADP (Automatic Data Processing Inc.) is a conservative dividend growth fund managed by institutional managers. It focuses on generating income through strategic holdings. With significant capital, this fund has been operational since its inception.
Strategy: Focuses on quality dividend-paying companies with strong balance sheets and consistent payout histories.
BIL (SPDR Bloomberg 1-3 Month T-Bill ETF) is a conservative dividend growth fund managed by SPDR. It focuses on generating income through strategic holdings. With $42.7B in assets under management, this fund has been operational since its inception.
Strategy: Focuses on quality dividend-paying companies with strong balance sheets and consistent payout histories.
In the head-to-head battle of ADP vs BIL, the choice depends on your specific goal. BIL wins for Immediate Income with a 4.78% yield. However, BIL is the better choice for Long-Term Growth due to superior total return performance.
Which fund is safer for retirement income? We analyze the yield sustainability and structural risk.
The Bottom Line Question: If you invest $100,000 today, how much cash will you actually receive each month? Here's the exact math:
ADP
Annual Yield: 2.76%
$230/mo
($2,755/year)
Frequency: quarterly
BIL
Annual Yield: 4.78%
$398/mo
($4,779/year)
Frequency: monthly
Income Gap: BIL generates $2,024/year more than ADP on the same $100k investment.
Over 20 years, that's $40,480 in additional cash flow (before reinvestment).
Context Matters: Higher income doesn't always mean better investment. Review the "Yield Trap" and "Total Return" sections above—you want income that's sustainable, not just headline-grabbing.
Historical data reveals how these funds behave during market stress. BIL has delivered a superior Total Return of 4.59% over the past year.
What is Max Drawdown? Max drawdown measures the largest peak-to-trough decline in portfolio value during a specific period. Unlike NAV change (which only looks at start vs. end), max drawdown captures the worst moment of pain an investor experienced.
Real-World Scenario: $100,000 Investment
BIL (More Resilient)
Max Drawdown: -0.54%
-$540
Worst unrealized loss
ADP (More Volatile)
Max Drawdown: -24.74%
-$24,740
Worst unrealized loss
Protection Value: BIL saved investors $24,200 in drawdown severity on a $100k position.
Why This Matters More Than Total Return: During bear markets or corrections, investors with lower max drawdown are:
⚖️ Capital Preservation Winner: BIL demonstrated superior downside protection, making it the better choice for retirees who cannot afford steep temporary losses.
Every investor has a unique risk profile. Use our Portfolio Intelligence tool to see the impact of adding these ETFs to your holdings.