$6.4Billion TBIL ETF Gets A Mutual Fund Twin From F/m Investments

F/m Investments has introduced a mutual fund share class of its flagship US Treasury 3 Month Bill Fund ETF , creating a dual-share-class structure that allows investors to access the same strategy across brokerage and retirement accounts.

The new mutual fund, TBFMX, mirrors the portfolio of TBIL, which invests in three-month U.S. Treasury bills. While TBIL continues to trade on brokerage platforms as an ETF, TBFMX is designed for retirement plans and other platforms that typically offer mutual funds.

With about $6.4 billion in assets, TBIL is the firm's largest ETF.

Bridging Brokerage And Retirement Accounts

Historically, investors have often held similar strategies in different wrappers depending on the account type?ETFs in brokerage accounts and mutual funds in retirement plans. This separation can lead to differences in fees, performance tracking, and operational reconciliation.

According to CEO Alexander Morris, the firm built the structure on the premise that the investment wrapper should not dictate the strategy investors can access. He said investors have long faced a trade-off between the liquidity and tax efficiency of ETFs and the broader platform access offered by mutual funds. The dual-share-class structure, he added, removes that constraint by allowing both vehicles to share the same underlying portfolio.

F/m said financial advisors who use the ETF in brokerage accounts can now allocate the same strategy in retirement plans without managing separate products.

The launch marks the first dual-share-class structure introduced under a specific exemption from the U.S. Securities and Exchange Commission since Vanguard Group pioneered the approach in 2001. Vanguard held a patent on the structure for more than two decades, and its expiration has allowed other firms to pursue similar models.

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