Two of the market's most popular income ETFs compared side-by-side. See which one fits your yield strategy.
What this means: BIL is ratedTier 1 (Cornerstone)while CAIBX is ratedTier 2 (Yield Plus).BIL is structurally lower risk than CAIBX.
| Metric | BIL | CAIBX |
|---|---|---|
| Total Return (1Y) | 4.59% | 29.65% |
| NAV Change (1Y) | -0.19% | 6.78% |
| Max Drawdown | -0.54% | -18.78% |
| Beta | - | - |
* Returns include dividend reinvestment. Drawdown calculates peak-to-trough decline over trailing 12 months.
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.
CAIBX (American Funds Capital Income Bldr A) is a conservative dividend growth fund managed by American Funds. 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.
In the head-to-head battle of BIL vs CAIBX, the choice depends on your specific goal. CAIBX wins for Immediate Income with a 22.87% yield. However, CAIBX 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:
BIL
Annual Yield: 4.78%
$398/mo
($4,779/year)
Frequency: monthly
CAIBX
Annual Yield: 22.87%
$1,905/mo
($22,865/year)
Frequency: quarterly
Income Gap: CAIBX generates $18,086/year more than BIL on the same $100k investment.
Over 20 years, that's $361,720 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. CAIBX has delivered a superior Total Return of 29.65% 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
CAIBX (More Volatile)
Max Drawdown: -18.78%
-$18,780
Worst unrealized loss
Protection Value: BIL saved investors $18,240 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.