CGUI vs XHLF

CGUIBCapital Group Ultra Short Income ETF

XHLFABondBloxx Bloomberg Six Month Target Duration US Treasury ETF

In short

CGUI Capital Group made its name on active bond and stock pickers, not index trackers. CGUI points that machinery at the dull end of the curve: investment-grade paper, duration held to a year or less, income paid monthly.

XHLF Most cash-parking funds pick a maturity bucket. XHLF picks a number: it blends Treasury bills to an average duration of about six months, resets to that target monthly, and charges three basis points to do it.

Stated mandate

CGUI The fund seeks current income while maintaining an ultra-short duration profile and focusing on capital preservation.

XHLF The Fund seeks to track the investment results of an index composed of U.S. Treasury securities.

Why people hold it

• CGUI The rulebook is tight: an average portfolio duration of one year or less and a dollar-weighted average effective maturity of two years or less under normal conditions.sec.gov
• At 0.18% a year it undercuts the typical cash-alternative fund and matches JPST, the category's most established name, on price.
• Actively run, not an index copy. The 3-month T-bill index is the yardstick, not the shopping list, so managers can pick their spots across short corporate and securitized paper.capitalgroup.com
• Income arrives monthly, spread across a couple hundred short-dated positions, and the fund sits in the upper half of its cash-alternative peer group.

• XHLF Costs 0.03% a year, against a typical short-Treasury peer near 0.14%. In cash-like funds, where returns come from bills everyone owns, fee is the main lever.
• Tracks an index built to hold an average duration of roughly six months, rebalanced monthly, so exposure stays anchored instead of drifting as bills mature.bondbloxxetf.com
• Sits in the gap between 0-3 month bill funds and one-year funds. Its sibling XONE targets a one-year duration at the same 0.03%, so the two can be mixed to dial in duration.
• US Treasury bills only, no credit bets hiding in the portfolio, run in a multi-billion-dollar fund that has stayed close to its index.

Worth knowing

• CGUI It is a bond fund, not a money market fund. The share price moves, and on an exchange it can trade above or below the value of what it holds.capitalgroup.com
• Launched in 2024, so the live record is short next to cash funds that have already traded through several rate cycles.
• Cheaper shelf-mates exist: ICSH charges 0.08%, well under half the fee, with a different portfolio behind it.

• XHLF Six months of duration is not zero. Prices move a touch more when yields shift than in 0-3 month bill funds such as BIL or CLIP.
• Income rides whatever Treasury bills happen to pay, and distributions arrive on an irregular rhythm rather than a fixed amount or schedule.
• Volume is moderate next to the largest bill ETFs, so spreads can be a bit wider, which matters more on big tickets than small ones.

Full CGUI profile⁠

Full XHLF profile⁠