$100,000 in Cash Earns $380 a year at the Bank. This Low-Risk ETF Pays $3,450
Most savers accept whatever the bank offers without realizing that a different category of low-risk account exists, one that tracks something far closer to what the Federal Reserve actually sets as its target rate.
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According to the Federal Deposit Insurance Corporation (FDIC), the national average savings account deposit rate stood at just 0.38% for July 2026. While that’s better than nothing, it’s a long way from keeping up with inflation and nowhere close to the current federal funds target range of 3.50% to 3.75%. If you’re parking an emergency fund in a traditional savings account, the principal is insured and readily accessible. That’s valuable. But it also means accepting a yield that sits well below what short-term government securities currently offer.
Fortunately, investors now have plenty of ETF options that provide exposure to those higher short-term Treasury yields. No, they aren’t FDIC insured, and unlike traditional money market mutual funds they don’t maintain a fixed $1 share price. But by investing exclusively in ultra-short U.S. Treasury securities, they typically exhibit very little price volatility. One option that stands out for investors who appreciate frequent cash flow is the Roundhill Weekly T-Bill ETF (WEEK).
What is WEEK?
WEEK is an actively managed Treasury bill ETF that functions much like a professionally managed Treasury ladder. Instead of purchasing individual Treasury bills through TreasuryDirect and managing maturities yourself, the portfolio managers continuously maintain a ladder of short-term Treasury bills on your behalf. In exchange, investors pay a 0.19% expense ratio.
The portfolio is managed with the goal of maintaining a relatively stable net asset value around $100 per share. During the week, the ETF’s share price gradually rises as interest accrues on the underlying Treasury bills. Once the weekly distribution is paid, the share price drops by approximately the amount of the distribution, and the process begins again.
This differs from owning individual Treasury bills directly. Individual T-bills are purchased at a discount to their face value and mature at par, with the difference representing your return. The payment schedule is straightforward. Distribution declarations generally occur on Monday, shares trade ex-dividend on Tuesday, and payments are made on Wednesday.
How Much Does WEEK Pay?
After deducting its 0.19% expense ratio, WEEK currently offers a 3.45% 30-day SEC yield. That’s near the lower end of the current federal funds target range, which is exactly what you’d expect from an ETF invested almost entirely in short-term Treasury bills with minimal risk.
Another advantage is tax efficiency. Because the fund invests exclusively in U.S. Treasury bills, the income it distributes is generally exempt from state and local income taxes, although investors should wait for their year-end Form 1099-DIV to determine the exact tax treatment applicable to their distributions.
WEEK won’t generate stock market-like returns, nor is it designed to. Instead, it offers a simple way to earn a regular, competitive yield on idle cash while maintaining exceptionally high credit quality and very low interest-rate risk.
Contact [email protected] for any questions or corrections.
Tony Dong is the founder of ETF Portfolio Blueprint. He also serves as Lead ETF Analyst for ETF Central, a partnership between Trackinsight and the NYSE.
Tony’s work focuses on ETF strategy, portfolio construction, and risk management, with an emphasis on making complex investment concepts accessible to everyday investors. His insights and analysis have also appeared in U.S. News & World Report, Kiplinger, MoneySense, and The Motley Fool.
Tony holds a Master of Science degree in enterprise risk management from Columbia University and the Certified ETF Advisor (CETF) designation from The ETF Institute.
