SOFR vs XHLF

SOFRCAmplify Samsung SOFR ETF

XHLFABondBloxx Bloomberg Six Month Target Duration US Treasury ETF

In short

SOFR The ticker is the mandate. Instead of owning a T-bill ladder and hoping it nets out to the overnight rate, this fund goes at the rate directly through Treasury-backed repurchase agreements, targeting SOFR after fees.

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

SOFR The Fund seeks current income matching the returns of the Secured Overnight Financing Rate (SOFR), after fund expenses. It aims to closely replicate SOFR and expects to do so principally through repurchase agreements.

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

Why people hold it

• SOFR Rare literal mandate: seek current income matching the Secured Overnight Financing Rate after expenses, principally through repurchase agreements. No duration bet, no credit-spread hunt.amplifyetfs.com
• The portfolio matches the label. Repo against Treasury collateral, overnight in and overnight out, and it tracks the rate it names closely enough to rank in the upper half of cash-alternative funds.
• Income lands monthly, and the 0.20% fee sits right at the median for cash-alternative ETFs.

• 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

• SOFR Thinly traded next to the cash-parking giants, so limit orders and a look at the spread matter more here.
• Payouts float with the overnight rate by design. When SOFR drops, what the fund passes through drops with it.
• Median fee, not a bargain one: ICSH charges 0.08%, JPST 0.18%, and several peers land at 0.15%.

• 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 SOFR profile⁠

Full XHLF profile⁠