iShares Short Treasury Bond ETF (NASDAQ: SHV)

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iShares Short Treasury Bond ETF

The Fund seeks to track the investment results of the ICE Short US Treasury Securities Index (the Underlying Index), which measures the performance of public obligations of the U.S. Treasury that have a remaining maturity of less than or equal to one year. Under normal circumstances, the Fund will seek to maintain a weighted average maturity of less than one year. Weighted average maturity is the U.S. dollar weighted average of the remaining term to maturity of the underlying securities in the Funds portfolio. As of February 29, 2024, there were 103 components in the Underlying Index. The Underlying Index is market value-weighted based on amounts outstanding of issuances consisting of publicly issued U.S. Treasury securities that have a remaining term to final maturity of less than or equal to one year as of the rebalance date and dollar 1 billion or more of outstanding face value, excluding amounts held by the Federal Reserve System Open Market Account. In addition, the securities in the Underlying Index must have a fixed coupon schedule and be denominated in U.S. dollars. Excluded from the Underlying Index are inflation-linked debt and zero-coupon bonds that have been stripped from coupon-paying bonds (e.g., Separate Trading of Registered Interest and Principal of Securities). However, the amounts outstanding of qualifying coupon securities in the Underlying Index are not reduced by any individual components of such securities (i.e., coupon or principal) that have been stripped after inclusion in the Underlying Index. The Underlying Index is rebalanced on the last calendar day of each month.

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억만장자 투자자 차마스 팔리하피티야는 지난 몇 주 동안 시장에 대한 불길한 신호에 경종을 울리며 심리가 크게 바뀌고 있음을 암시하고 있다.무슨 일 있었나: 월요일(25일) 팔리하피티야는 엑스(X) 게시물에서 &#34;시장이 리스크 오프(위험 회피) 상태&#34;라고 말하며, 바차트(Barchart) 게시물을 인용해 머니마켓펀드가 보유한 자산이 7조 2,400억 달러로 &#34;사상 최고치&#34;라는 놀라운 증가세를 보이고 있다고 밝혔다. 

머니마켓펀드 자산 7조 2400억 달러 도달···차마스 팔리하피티야 &#34;투자자 우려 상승&#34; 경고

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수요일 연방준비제도(연준)의 금리 0.5% 인하 결정은 투자자들을 머니마켓(자금 시장 또는 단기금융 시장) 펀드에서 장기 채권으로 끌어들일 수 있다고, 한 포트폴리오 관리자가 전했다.

연준 금리 인하로 투자자들이 자금 시장을 떠날 수도, 포트폴리오 매니저

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Billionaire investor Chamath Palihapitiya is sounding the alarm on an ominous new sign for the markets, hinting at a major shift in sentiments over the past couple of weeks.
What Happened: On Monday, in a post on X, Palihapitiya posted saying that the &#8220;market is risk-off,&#8221; while quoting a post by Barchart, showing a staggering rise in the assets held by money market funds, at $7.24 trillion, &#8220;a new all-time high.&#8221;
Investors develop a penchant for money market funds, or cash equivalent funds, during periods of heightened market and economic turmoil. The spike in these assets underscores growing investor caution amid persistent macro uncertainty and shifting rate expectations. 
See Also: <a href="https://www.benzinga.com/25/05/45610375/americas-deficit-hits-crisis-mode-now-larger-than-1980s-and-2001-recession-levelwhat-happens-in-a-real-downturn">America&#8217;s Fiscal Time Bomb: Deficit Spending Hits Crisis Levels Despite No Economic Downturn Say Market Commentators</a>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Market is risk-off. <a href="https://t.co/JkULbZlO1u">https://t.co/JkULbZlO1u</a>
&mdash; Chamath Palihapitiya (@chamath) <a href="https://twitter.com/chamath/status/1927137685799321637?ref_src=twsrc%5Etfw">May 26, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
In a one-line post, Palihapitiya contends the same, that investors are fleeing riskier assets such as stocks, in favor of safer, yield-generating instruments, waiting for the dust to settle.
According to KoyFin Charts, whose data was cited by Barchart, which was in turn quoted by Palihapitiya, there has been a sharp rise in inflows for money market funds, starting in 2022, when the Federal Reserve began its aggressive rate hikes, resulting in significantly higher yields for investors.
Why It Matters: While this is seen as a sign of anxiousness among investors, market observers such as The Market Ear believe that these funds are just &#8220;dry powder,&#8221; or cash reserves that will make their way back into the markets after getting the right signal.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Now that&#39;s some dry powder! $7 trillion sitting in U.S. money market funds. <a href="https://t.co/xT7nEMBV52">pic.twitter.com/xT7nEMBV52</a>
&mdash; The Market Ear (@themarketear) <a href="https://twitter.com/themarketear/status/1926948542825771487?ref_src=twsrc%5Etfw">May 26, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
At $7.24 trillion, this marks a significant increase in assets over the past week alone, with the Investment Company Institute <a href="https://www.ici.org/research/stats/mmf">reporting</a> $6.97 trillion in total money market assets during the week ending 21st May. 
<figure class="wp-block-table"> 
<table class="has-fixed-layout">
<thead>
<tr>
<th>ETF (ticker)</th>
<th class="has-text-align-center" data-align="center">April '25 net inflows</th>
<th class="has-text-align-center" data-align="center">Assets Owned</th>
</tr>
</thead>
<tbody>
<tr>
<td>SPDR Bloomberg 1-3 Month T-Bill ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BIL#NYSE">BIL</a>)</td>
<td class="has-text-align-center" data-align="center">$6.6 billion</td>
<td class="has-text-align-center" data-align="center">Pure Treasury bills maturing in 30-90 days</td>
</tr>
<tr>
<td>iShares 0-3 Month Treasury Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SGOV#NYSE">SGOV</a>)</td>
<td class="has-text-align-center" data-align="center">$5.5 billion</td>
<td class="has-text-align-center" data-align="center">Even shorter T-bills (0&#8211;90 days). </td>
</tr>
<tr>
<td>iShares Short Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SHV#NASDAQ">SHV</a>)</td>
<td class="has-text-align-center" data-align="center">$2.1 billion</td>
<td class="has-text-align-center" data-align="center">Holds Treasurys inside one year</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">The money market ETFs that saw the most inflows in April 2025, according <a href="https://www.etf.com/sections/monthly-etf-flows/etf-inflows-resilient-amid-aprils-quick-ups-and-downs">to</a> ETF.com</figcaption></figure>
Read More: <a href="https://www.benzinga.com/news/retail-sales/25/05/45610337/trumps-plan-to-rip-the-waste-out-means-end-of-the-road-for-the-penny-but-what-happens-when-cash-totals-jump-to-the-next-nickel">Trump&#8217;s Plan To &#8216;Rip The Waste Out&#8217; Means End Of The Road For The Penny, But What Happens When Cash Totals Jump To The Next Nickel</a>

Chamath Palihapitiya Flags Rising Investor Fear As Money Market Fund Assets Hit $7.24 Trillion: 'Market Is Risk-Off'

Fears of the end of the U.S. exceptionalism trade have triggered a rare, simultaneous selloff across stocks, Treasuries and the dollar in recent weeks, as concerns over tariffs and the politicization of the Federal Reserve under President Donald <a href="https://www.benzinga.com/topic/donald-trump">Trump continue to mount.</a>
Since Trump's self-declared "Liberation Day" on April 2, when he unveiled sweeping "reciprocal tariffs" on U.S. trading partners, the market reaction has been swift and broadly negative. U.S. government bonds, traditionally a refuge during equity volatility, have failed to provide a safe haven.
<h3 class="wp-block-heading">The Trump-Powell Tension Behind The Market Unwind</h3>
Market fragility was further exposed by Trump&#8217;s open attacks on Fed Chair Jerome Powell. 
First, he wrote last week on Truth Social, "Jerome Powell is always too late and wrong. His termination cannot come fast enough." 
Then, during a press conference with Italy's Giorgia Meloni, he pushed the issue further: "If I want him out. He&#8217;ll be out of there real fast. Believe me."
Confirmation from National Economic Council Director Kevin Hassett that the administration is "considering" removing Powell before his term ends in 2026, also added fuel to the fire.
On Monday, the Trump-Powell drama escalated again, sending shockwaves across currency markets, where central bank independence is viewed as a cornerstone of stability.
Trump posted on Truth Social, pushing for "preemptive" interest rate cuts. He wrote that with energy costs and food prices falling — sarcastically referencing Biden's "egg disaster" — inflation was virtually gone. The president warned of a slowing economy unless Powell, whom he labeled a "major loser," acted immediately.
He further accused Powell of political bias during the previous election cycle, claiming the Fed Chair only cut rates to help former President Joe Biden and later Vice President Kamala Harris win the White House.
Betting markets currently assign a 23% chance on Powell no longer serving as Fed Chair by the end of the year. 
<iframe loading="lazy" src="https://kalshi.com/external-widgets/events/LEAVEPOWELL-25/markets/LEAVEPOWELL-25-DEC31?color_scheme=light&#038;widget_size=large&#038;utm_campaign=benzinga_widget" width="552px" height="400px" style="border:0"></iframe>
<h3 class="wp-block-heading">Triple Threat: Stocks, Bonds, Dollar All Down</h3>
The market has responded decisively. Since April 2, 2025:
<ul>
<li>The iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) has dropped more than 6%</li>
<li>The Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>), tracking the dollar index, has fallen 5.8%</li>
<li>The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) has tumbled over 8%</li>
</ul>
This rare triple selloff challenges a foundational assumption: that Treasuries typically gain when risk assets fall. 
The breakdown of this historical inverse correlation has led many to wonder: Are investors abandoning Treasuries?
<h2 class="wp-block-heading">What the Official Data Shows, And What It Doesn't</h2>
The latest U.S. Treasury International Capital (TIC) data, covering February, doesn&#8217;t show large-scale foreign divestment. 
According to Goldman Sachs, foreign investors actually net purchased long-term U.S. securities in February, including Treasuries, equities and corporate bonds.
Agency securities saw some selling, but overall the data point to continued interest from global buyers—even as market volatility ramps up.
That said, February is now outdated. 
With April&#8217;s turbulence unfolding post-TIC cutoff, the latest exchange-traded fund flows could offer more immediate clues about investor behavior.
<h3 class="wp-block-heading">ETF Flows Reveal a More Nuanced Picture</h3>
According to data from ETFDB.com through April 18, there's no evidence of broad-based exodus from Treasury ETFs. 
Despite some rotation out of long-duration ETFs like TLT and Vanguard Extended Duration Treasury ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EDV#NYSE">EDV</a>), short- and mid-duration Treasury ETFs have attracted strong inflows during the month. 
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>ETF Name </th>
<th>April Flows</th>
<th>Trend Insight</th>
</tr>
</thead>
<tbody>
<tr>
<td>iShares 20+ Year Treasury Bond ETF </td>
<td>-$2.85 billion</td>
<td>Outflows have outweighed inflows since September 2024. </td>
</tr>
<tr>
<td>Vanguard Extended Duration Treasury ETF</td>
<td>-$385 million</td>
<td>Worst monthly outflow since data began in 2015</td>
</tr>
<tr>
<td>iShares U.S. Treasury Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GOVT#NYSE">GOVT</a>)</td>
<td>+$78 million</td>
<td>Modest recovery after March's $2.95 billion outflow</td>
</tr>
<tr>
<td>iShares 1-3 Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SHY#NASDAQ">SHY</a>)</td>
<td>+$1.2 billion</td>
<td></td>
</tr>
<tr>
<td>iShares 3-7 Year Treasury Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEI#NYSE">IEI</a>)</td>
<td>+$897 million</td>
<td>Highest inflows since July 2022</td>
</tr>
<tr>
<td>iShares Short Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SHV#NASDAQ">SHV</a>)</td>
<td>+$2.94 billion</td>
<td>Best month since February 2023</td>
</tr>
<tr>
<td>iShares 7-10 Year Treasury Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEF#NYSE">IEF</a>)</td>
<td>+$230 million</td>
<td>Four straight months of inflows</td>
</tr>
<tr>
<td>Vanguard Intermediate-Term Treasury ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VGIT#NASDAQ">VGIT</a>)</td>
<td>+$770 million</td>
<td>Strongest inflows since June 2024</td>
</tr>
<tr>
<td>Vanguard Short-Term Treasury ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VGSH#NASDAQ">VGSH</a>)</td>
<td>+$505 million</td>
<td>On pace for fourth straight positive month</td>
</tr>
<tr>
<td>PIMCO 25+ Year Zero Coupon U.S. Treasury ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ZROZ#NYSE">ZROZ</a>)</td>
<td>+$3.55 million</td>
<td>Minimal activity; flows remain stagnant since October 2024</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Data as of April 18, 2025</figcaption></figure>
<h3 class="wp-block-heading">What About China?</h3>
There's also speculation that major foreign holders, especially China, could be reducing exposure to U.S. government debt in retaliation for tariffs. 
Yet, Goldman Sachs analysts see little evidence of that.
They indicated the recent dislocations are "more likely related to position unwinds by levered investors than significant real money (domestic or international) selling," a view also recently expressed by <a href="https://www.benzinga.com/topic/scott-bessent">U.S. Treasury Secretary Scott Bessent</a> during a Bloomberg interview. 
As Goldman highlighted, the dollar/yuan exchange rate behavior does not support the idea of major Chinese repatriation—
if Beijing were dumping Treasuries, USD/CNY would likely face sharp downward pressure, but the opposite has happened.
<h3 class="wp-block-heading">No Sign Of A Treasury Crisis, Yet</h3>
The bottom line: while some repositioning out of longer-dated Treasuries has been repositioned, ETF flows suggest no broad investor flight from the Treasury market.
If anything, there is a tilt toward shorter maturities, likely reflecting a desire to hedge against both rate volatility and political uncertainty.
Until more recent TIC data is available in June, ETF flows remain the best window into investor sentiment and so far, they suggest the panic narrative may be premature.
Now Read: 
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<li><a href="https://www.benzinga.com/news/25/04/44886209/if-you-had-bet-on-gold-after-the-1971-nixon-shock-youd-have-beaten-the-sp-500-unless-you-did-this-one-thing">If You Had Bet On Gold After The 1971 Nixon Shock, You&#8217;d Have Beaten The S&amp;P 500 — Unless You Did This One Thing</a></li>
</ul>
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Are Investors Selling US Treasuries As Trump Attacks Powell? Here's What Latest ETF Flows Tell You

President Donald Trump's tariffs against America's trading partners and the subsequent retaliatory measures from China and Europe resulted in major losses for investors across the globe, with no end to volatility in sight. Trade tensions may ease amid expected deals between key countries, but prudent investors are rethinking their long-term strategies.
Dividend stocks have gained significance in this period of market turbulence because of their strong history. A March <a href="https://www.spglobal.com/spdji/en/documents/research/research-sp500-dividend-aristocrats.pdf">report</a> from S&amp;P Global showed that dividends have accounted for about 31% of the total S&amp;P 500 returns since 1926.
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<li>‘Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. <a href="https://www.benzinga.com/money/mode-mobile-2">You can invest today for just $0.26/share with a $1000 minimum.</a></li>
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A few weeks ago, a dividend investor<a href="https://www.reddit.com/r/dividends/comments/1jic07f/retired_in_2021/"> shared</a> his income report and portfolio details on r/Dividends — a Reddit community with over 700,000 followers. The portfolio screenshots shared by the investor showed he was making about $9,250 per month, or $111,100 annually, in dividends. His total portfolio yield was about 2.3%.&nbsp;
"Dividends and interest cover 60% of expenses. Decent growth without huge volatility," he said.
The investor, 58, said he was a software engineer in Silicon Valley and retired in 2021. He said his goal is to cover his expenses of $15,000 per month with dividends by 2030.&nbsp;
"YOLO'd tech stocks in my IRA," the investor said, referring to the social media slang for taking a bold, high-risk approach.
Trending: Hasbro, MGM, and Skechers trust this AI marketing firm — <a href="https://www.benzinga.com/money/rad-intel">invest pre-IPO from $0.55 per share now</a>.
Let's take a look at some of the key holdings in the investor's portfolio.
iShares Short Treasury Bond ETF&nbsp;
The iShares Short Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SHV#NASDAQ">SHV</a>) gives investors exposure to US Treasury bonds with remaining maturities of one year or less. SHV is suitable for investors looking for low-risk funds to preserve capital and earn income.&nbsp; The investor said SHV accounted for about 5% of his total portfolio.
iShares Core U.S. Aggregate Bond ETF
iShares Core U.S. Aggregate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AGG#NYSE">AGG</a>) was another key bond ETF in the investor's portfolio.&nbsp; The fund tracks an index composed of investment-grade US bonds.
See Also: BlackRock is calling 2025 the year of alternative assets. <a href="https://www.benzinga.com/money/masterworks">One firm from NYC has quietly built a group of 60,000+ investors who have all joined in on an alt asset class previously exclusive to billionaires like Bezos and Gates.</a>
&nbsp;Schwab U.S. Dividend Equity ETF
The investor earning about $9,000 in monthly dividends had Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) in his portfolio. Schwab U.S. Dividend Equity ETF tracks the Dow Jones U.S. Dividend 100 Index and provides exposure to some of the top dividend stocks trading in the U.S., including Verizon (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>), Coca-Cola (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KO#NYSE">KO</a>), ConocoPhillips (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COP#NYSE">COP</a>), Lockheed Martin (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>), PepsiCo (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEP#NASDAQ">PEP</a>) and Chevron (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>).&nbsp;
iShares Core S&amp;P 500 ETF
The investor making $9,000 a month in dividends said about 60% of his portfolio was allocated to the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>). The fund tracks the S&amp;P 500 Index and yields about 1.2%. It provides investors exposure to some of the biggest companies in the world, including Nvidia (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Microsoft (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Apple (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Meta Platforms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), Amazon (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) and Alphabet (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>, GOOGL)), among others.
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<li>Deloitte's fastest-growing software company partners with Amazon, Walmart &amp; Target – <a href="https://www.benzinga.com/money/mode-mobile-2">Many are rushing to grab 4,000 of its pre-IPO shares for just $0.26/share!</a></li>
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Software Engineer Making $9,000 a Month in Dividends Shares Portfolio, Says He 'YOLO'd Tech Stocks in IRA'

The Federal Reserve&#8217;s decision cut interest rates by 0.5% on Wednesday <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40943496/fed-rate-cut-eases-debt-refinancing-for-smaller-cloud-computing-firms-analyst-flags">may pull investors</a> away from money market funds and into longer duration bonds, according to a portfolio manager.
Total money market fund assets&nbsp;decreased by $20.02 billion to $6.30 trillion for a week ending on Wednesday, Sept. 18, the Investment Company Institute said. Among taxable money market funds, government funds&nbsp;decreased by $18.82 billion and prime funds decreased by $2.42 billion.&nbsp;
&#8220;Historically, we&#8217;ve seen more assets move into longer duration bonds when yields have fallen, and I think we&#8217;ve already seen some of that happen this year,&#8221; said Timothy Ng, a fixed-income portfolio manager with Capital Group.
&#8220;I expect this trend to continue as the Fed continues to cut rates,&#8221; he said.
Read Also: <a href="https://www.benzinga.com/real-estate/reit/24/09/40949753/mortgage-rates-near-6-demand-increases-for-refinancing-purchases">Mortgage Rates Near 6%, Demand Increases For Refinancing, Purchases</a>
&#8220;I think some of that flow will go into both equities and bonds, but in terms of relative scale, it will likely depend on the outlook for the economy, valuations and market sentiment between the two asset classes.&#8221;
A lot of assets moved into the money markets in recent years because money market yields were very attractive, but that may no longer be the case as the Fed plans to make further rate cuts this year, he said.
&#8220;Now you&#8217;re not getting as much yield waiting around, and you run the risk of missing out on capital appreciation that comes with having more duration in your portfolio as yields fall,&#8221; he said.
Price Action: Exchange-traded funds that hold money market funds gained slightly into Friday&#8217;s late-afternoon trading.
<ul id="mntl-sc-block_7-0">
<li>iShares Short Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SHV#NASDAQ">SHV</a>) gained 0.05%</li>
<li>BlackRock Short Maturity Bond ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/NEAR#BATS">NEAR</a>) rose 0.06%</li>
<li>SPDR Bloomberg Barclays 1-3 Month T-Bill ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BIL#NYSE">BIL</a>) went up 0.044%</li>
<li>Invesco&nbsp;Ultra Short Duration ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GSY#NYSE">GSY</a>) picked up 0.07%</li>
</ul>
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<li><a href="https://www.benzinga.com/news/24/09/40950904/claudia-sahm-underscores-feds-mandate-to-protect-jobs-says-additional-cuts-expected-the-time-to-supp">Claudia Sahm Underscores Fed&#8217;s Mandate to Protect Jobs, Says Additional Cuts Expected: &#8216;The Time To Support The Labor Market Is When It&#8217;s Strong&#8217;</a></li>
</ul>
Photo: Shutterstock

Fed Rate Cut May Drive Investors Away From Money Markets, Says Portfolio Manager

In a world where cash is once again king, investors are turning their attention to cash-like funds and ETFs. One universe garnering notable interest is the U.S. Treasury market, where yields on short-term bonds have climbed to levels not seen <a href="https://www.benzinga.com/government/23/09/34488266/treasury-bills-at-5-yield-retail-investors-jump-on-the-risk-free-bandwagon">in nearly two decades.</a>
As of now, the annual yield on U.S. Treasury bonds, particularly those with maturities of up to two years, hovers around 5%. To put this into perspective, it&#8217;s the highest yield these securities have offered since June 2007 and is currently well above the latest annual inflation rate of 3.7%. 
What&#8217;s remarkable about this return is that it comes from one of the safest assets in the world — U.S. Treasury securities.
<h2 class="wp-block-heading">Why Short-Term Treasury ETFs Are The Safest Assets On The Planet</h2>
These bonds, which are issued by the federal government, are highly regarded for their safety due to the fact that they are backed by the unwavering trust and creditworthiness of the U.S. government. Regardless of the prevailing economic conditions, whether it be during a recession, periods of inflation, or even times of conflict, the U.S. government remains steadfast in fulfilling its commitments to bondholders.
The yields on the shorter end of the Treasury yield curve are often dubbed &#8220;risk-free.&#8221; This label stems from the clear-cut expectation that the U.S. government will fulfill its obligations upon maturity.
For non-U.S.-based investors, these short-term Treasury ETFs offer another perk. They provide exposure to the U.S. dollar, a primary safe-haven asset that tends to appreciate during liquidity crises and global risk-off periods.
Read Also: <a href="https://www.benzinga.com/markets/bonds/23/09/34327727/cash-is-king-5-bond-etfs-unlocking-attractive-returns-in-a-5-rate-world">Cash Is King: 5 Bond ETFs Unlocking Attractive Returns In A 5% Rate World</a>
But here&#8217;s where it gets interesting for income-seeking investors: dividends paid by bond ETFs, such as these Treasury-focused ones, translate into reliable and predictable monthly income.
While there are bond ETFs out there offering yields higher than 5%, they often lean towards high-yield corporate bonds or emerging market debt. While these can provide attractive yields, they might not provide the same level of security during times of global market turbulence.
In contrast, short-term Treasury ETFs maintain a stable annual yield of around 5% while serving as a protective cushion within a diversified portfolio. They act as a shield during bouts of heightened market volatility.
<h2 class="wp-block-heading">How To Generate A $500 Monthly Dividend With These 7 U.S. Treasury ETFs</h2>
Now, let&#8217;s delve into how an annual yield of 5% can generate a consistent monthly income of $500, thanks to these Treasury ETFs:
<ul>
<li>SPDR Bloomberg 3-12 Month T-Bill ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BILS#NYSE">BILS</a>): Priced at $99.13, it offers an indicative dividend yield of 4.58%. With a last reported dividend of $0.425, paid monthly, you&#8217;d need 1,177 shares, amounting to $116,676, to generate $500 per month.</li>
<li>iShares 0-3 Month Treasury Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SGOV#NYSE">SGOV</a>): Currently trading at $100.39, it yields 4.39%. Its last reported dividend was $0.412, also paid monthly. To secure $500 monthly, you&#8217;d require 1,214 shares, totaling $121,873.</li>
<li>SPDR Bloomberg 1-3 Month T-Bill ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BIL#NYSE">BIL</a>): Priced at $91.55, this ETF offers a 4.36% yield. Its most recent dividend amounted to $0.394, paid monthly. To achieve $500 per month, you&#8217;d need 1,270 shares, valued at $116,268.</li>
<li>US Treasury 2 Year Note ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UTWO#NYSE">UTWO</a>): With a price of $47.90, it boasts a 4.28% yield and a last dividend of $0.194, paid monthly. To secure $500 monthly, you&#8217;d require 2,578 shares, worth $123,486.</li>
<li>BondBloxx Bloomberg One Year Target Duration US Treasury ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XONE#NYSE">XONE</a>): Currently trading at $49.51, it yields 4.27% and recently paid a dividend of $0.199, on a monthly basis. To attain $500 per month, you&#8217;d need 2,513 shares, amounting to $124,418.</li>
<li>Goldman Sachs Access Treasury 0-1 Year ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GBIL#NYSE">GBIL</a>): Priced at $99.82, it boasts a 4.20% yield and a last dividend of $0.407, distributed monthly. To generate $500 monthly, you&#8217;d require 1,229 shares, totaling $122,678.</li>
<li>iShares Short Treasury Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHV#NYSE">SHV</a>): Trading at $110.16, it offers a 4.18% yield, with a last dividend of $0.465, paid monthly. To achieve $500 per month, you&#8217;d need 1,076 shares, worth $118,532.</li>
</ul>
<figure class="wp-block-table"> 
<table>
<thead>
<tr>
<th>ETF</th>
<th>Price</th>
<th>Dividend Yield (Indicative)</th>
<th>Last Dividend Reported</th>
<th>Frequency</th>
<th>No. of ETF Shares To Buy</th>
<th>Amount needed to generate $500/m income</th>
</tr>
</thead>
<tbody>
<tr>
<td>SPDR Bloomberg 3-12 Month T-Bill ETF </td>
<td>$99.13</td>
<td>4.58%</td>
<td>$0.425</td>
<td>Monthly</td>
<td>1,177</td>
<td>$116,676</td>
</tr>
<tr>
<td>iShares 0-3 Month Treasury Bond ETF </td>
<td>$100.39</td>
<td>4.39%</td>
<td>$0.412</td>
<td>Monthly</td>
<td>1,214</td>
<td>$121,873</td>
</tr>
<tr>
<td>SPDR Bloomberg 1-3 Month T-Bill ETF </td>
<td>$91.55</td>
<td>4.36%</td>
<td>$0.394</td>
<td>Monthly</td>
<td>1,270</td>
<td>$116,268</td>
</tr>
<tr>
<td>US Treasury 2 Year Note ETF </td>
<td>$47.90</td>
<td>4.28%</td>
<td>$0.194</td>
<td>Monthly</td>
<td>2,578</td>
<td>$123,486</td>
</tr>
<tr>
<td>BondBloxx Bloomberg One Year Target Duration US Treasury ETF </td>
<td>$49.51</td>
<td>4.27%</td>
<td>$0.199</td>
<td>Monthly</td>
<td>2,513</td>
<td>$124,418</td>
</tr>
<tr>
<td>Goldman Sachs Access Treasury 0-1 Year ETF</td>
<td>$99.82</td>
<td>4.20%</td>
<td>$0.407</td>
<td>Monthly</td>
<td>1,229</td>
<td>$122,678</td>
</tr>
<tr>
<td>iShares Short Treasury Bond ETF </td>
<td>$110.16</td>
<td>4.18%</td>
<td>$0.465</td>
<td>Monthly</td>
<td>1,076</td>
<td>$118,532</td>
</tr>
</tbody>
</table>
</figure>
Read Now: <a href="https://www.benzinga.com/money/how-to-buy-treasury-bonds">How to Buy Treasury Bonds</a>
Photo: Shutterstock

Specialty ETFs

New ETFs

BILS

GBIL

UTWO

XONE

How To Earn $500 Monthly Income With These Cash-Like Treasury ETFs

August&#8217;s unpredictable market swings have led investors to seek solace in cash-equivalent ETFs, marking the most significant <a href="https://www.benzinga.com/etfs">influx in recent months.</a>
<h3 class="wp-block-heading">Billions Flow into Ultra-Short Bond ETFs</h3>
Investors have funneled a whopping $7 billion into ultra-short bond ETFs in August, as per <a href="https://www.bloomberg.com/news/articles/2023-08-31/cash-like-etfs-lure-billions-as-traders-shelter-from-volatility?srnd=premium&amp;sref=TBDibEcD">Bloomberg </a>Intelligence data. 
A significant chunk, over $2 billion, found its way to the SPDR Bloomberg 1-3 Month T-Bill ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BIL#NYSE">BIL</a>), marking a turnaround from the previous four months of capital flight.
<h3 class="wp-block-heading">Why the Sudden Appeal?</h3>
ETFs boasting short-term Treasury securities with returns exceeding 5% have become the sanctuary for investors, shielding them from the volatile movements of both stocks and bonds. Despite a recent dip in Treasury yields, they soared to their highest levels since 2007 earlier this month. This spike, driven by fears of persistent aggressive monetary policies and a supply surge, subsequently weighed down equities.
With these dynamics at play, August is shaping up to witness the most substantial inflows into cash-equivalent bond ETFs since the chilly month of February. Coincidentally, the S&amp;P 500, as tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) is also bracing for its initial monthly decline since that time.
While the SPDR Bloomberg 1-3 Month T-Bill ETF has been a favorite, other funds like the iShares 0-3 Month Treasury Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SGOV#NYSE">SGOV</a>) have seen nearly $2 billion in inflows. Meanwhile, the Goldman Sachs Access Treasury 0-1 Year ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GBIL#NYSE">GBIL</a>) and the iShares Short Treasury Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHV#NYSE">SHV</a>) have attracted over $500 million and $400 million, respectively.
Table: Ultra-Short Term Treasury Bond ETFs 
<figure class="wp-block-table"> 
<table>
<thead>
<tr>
<th>ETF</th>
<th>TICKER</th>
<th>AUM ($bn)</th>
<th>Fund Flows (August) ($bn)</th>
</tr>
</thead>
<tbody>
<tr>
<td>SPDR Bloomberg 1-3 Month T-Bill ETF</td>
<td>BIL</td>
<td>29.8</td>
<td>2.3</td>
</tr>
<tr>
<td>iShares 0-3 Month Treasury Bond ETF</td>
<td>SGOV</td>
<td>14.02</td>
<td>1.97</td>
</tr>
<tr>
<td>Goldman Sachs Access Treasury 0-1 Year ETF</td>
<td>GBIL</td>
<td>5.97</td>
<td>0.512</td>
</tr>
<tr>
<td>iShares Short Treasury Bond ETF</td>
<td>SHV</td>
<td>20.4</td>
<td>0.470</td>
</tr>
<tr>
<td>SPDR Bloomberg 3-12 Month T-Bill ETF</td>
<td>ARCA: BILS</td>
<td>2.52</td>
<td>0.149</td>
</tr>
<tr>
<td>SPDR Portfolio Short Term Treasury ETF</td>
<td>ARCA: SPTS</td>
<td>5.4</td>
<td>0.097</td>
</tr>
</tbody>
</table>
</figure>
Chart: 6-Month Treasury Bill Yields Are At The Highest In Over Two Decades
<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="598" src="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/31153250/US06MY_2023-08-31_21-32-03_4992d-1024x598.png" alt="" class="wp-image-98283" srcset="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/31153250/US06MY_2023-08-31_21-32-03_4992d-1024x598.png 1024w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/31153250/US06MY_2023-08-31_21-32-03_4992d-300x175.png 300w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/31153250/US06MY_2023-08-31_21-32-03_4992d-768x448.png 768w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/31153250/US06MY_2023-08-31_21-32-03_4992d-1536x897.png 1536w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/31153250/US06MY_2023-08-31_21-32-03_4992d.png 1850w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Shutterstock

Investors Bet $7B On Ultra-Short Term Bond ETFs, Chase 5% Returns Amid Market Volatility

On CNBC&rsquo;s &ldquo;<a href="https://www.cnbc.com/video/2022/07/22/final-trades-amazon-apple-boeing-more.html">Halftime Report Final Trades</a>,&rdquo; Rob Sechan of New Edge Capital Group recommended iShares Short Treasury Bond ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/shv#NASDAQ">SHV</a>) saying the inverted yield curve offers &ldquo;a nice yield in the short run.&rdquo;
Stephen Weiss of Short Hills Capital Partners suggested to &ldquo;sell some covered calls, out of the money&rdquo; if you own shares of Apple Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>). If you don&rsquo;t own the stock, buy the puts, which are &ldquo;pretty cheap,&rdquo; he added.
Check out other stocks making moves in the <a href="https://www.benzinga.com/premarket/">premarket</a>.
Shannon Saccocia of Boston Private recommended Amazon.com, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>) ahead of earnings on Thursday. &ldquo;We may see a little bit of pressure, but I am not that concerned about it,&rdquo; she said.
Also Read:&nbsp;<a href="https://www.benzinga.com/markets/cryptocurrency/22/07/28181337/mark-cuban-on-the-nightmare-waiting-for-the-crypto-industry">Mark Cuban Warns Crypto Faces Nightmare From SEC&#39;s Next Move: &#39;Wait Till You See What They Come Up With&#39;</a>
Jim Lebenthal of Cerity Partners named Boeing Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ba#NYSE">BA</a>) as his final trade. He mentioned that the company had witnesses &ldquo;one heck of a week in terms of order announcements for Boeing.&rdquo;

Long Ideas

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Trading Ideas

CNBC's Final Trades: Boeing, Apple, Amazon And This Short-Term Play

Last year, fixed income exchange traded funds hauled in a record $97 billion in new assets, or <a href="https://www.benzinga.com/analyst-ratings/analyst-color/19/01/12931695/investors-piled-into-bond-etfs-last-year">almost a third</a> of all the year&#39;s inflows to U.S.-listed ETFs.
New data from BlackRock Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/blk#NYSE">BLK</a>), the parent company of iShares, the world&#39;s largest ETF issuer, volume in bond ETFs jumped last year, too.
<h3>What Happened</h3>
Three of last year&#39;s top 10 ETFs in terms of new assets added were bond funds, a group including the iShares Short Treasury Bond ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/shv#NYSE">SHV</a>) and the iShares 1-3 Year Treasury Bond ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/shy#NASDAQ">SHY</a>).
Likewise, three of the 10 worst ETFs in terms of assets lost were fixed income funds, a group including the iShares iBoxx USD Investment Grade Corporate Bond ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lqd#NYSE">LQD</a>). Money moving into and out of bond ETFs triggered a corresponding uptick in volume in the funds.
&ldquo;2018 was a record year for US FI ETF secondary trading volumes, with $2.2 trillion of aggregate volumes across issuers or $8.5 billion/day, on average,&rdquo; <a href="https://www.ishares.com/">according to BlackRock.</a>
<h3>Why It&#39;s Important</h3>
The Federal Reserve raised interest rates four times last year, likely triggering some of the increased activity in bond ETFs. It&#39;s widely expected the Fed will slow its pace of rate hikes in 2019 or potentially not boost borrowing costs at all.
While 2019 is still in its infancy, the more sanguine rate outlook has some investors again flocking to bond ETFs early in the year. This month, seven of the top 10 asset-gathering ETFs <a href="https://www.etf.com/etfanalytics/etf-fund-flows-tool">are bond funds</a>. That follows a strong December of bond ETF activity.
&ldquo;December 2018 was also a record trading volume month for US FI ETFs amid heightened market volatility, as volumes totaled $273 billion ($13 billion/day), a ~$28 billion increase from the previous record set in October 2018,&rdquo; said BlackRock.
<h3>What&#39;s Next</h3>
BlackRock data indicate bond ETF volume is outpacing asset growth across a variety of fixed income segments, including emerging markets debt, investment-grade corporate debt, junk bonds and municipal bonds.
&ldquo;The 2018 growth rate in Muni ETF trading volumes was 2.5X greater than comparable AUM growth,&rdquo; said BlackRock. &ldquo;This dynamic speaks to the increasing usage of FI ETFs by investors, both institutional and retail, for various portfolio applications such as tactical beta, liquidity management, strategic exposure, portfolio completion, and listed options use-cases.&rdquo;
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Fixed Income ETF Volume Surged In 2018

Last year, U.S.-listed exchange traded fund took in $313 billion in new assets, short of 2017&#39;s record inflows, but still good for the second-best year on record.
While the Federal Reserve boosted interest four times in 2018, three of the year&#39;s top 10 asset-gathering ETFs were bond funds.
<h3>What Happened</h3>
Bond funds contributed mightily to 2018&#39;s overall ETF inflows. Last year, fixed income ETFs hauled in $97 billion in new assets.
&ldquo;To CFRA, the biggest ETF flows trend was in fixed income, which pulled in $97 billion of new money in 2018, equal to a 31% share of net inflows, even as the Federal Reserve raised interest rates multiple times,&rdquo; said <a href="https://newpublic.cfraresearch.com/">CFRA Research</a> Director of ETF &amp; Mutual Fund Research Todd Rosenbluth in a Thursday note.
<h3>Why It&#39;s Important</h3>
With interest rates ring in 2018, bond investors were particularly fond of short duration ETFs, such as the iShares Short Treasury Bond ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/shv#NYSE">SHV</a>) and the iShares 1-3 Year Treasury Bond ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/shy#NASDAQ">SHY</a>). SHV and SHY combined <a href="https://www.benzinga.com/trading-ideas/long-ideas/18/12/12911948/with-bond-etfs-keep-it-short-again-in-2019">for over $22 billion</a> of the new money added to bond ETFs last year.
Other popular short-term bond ETFs included the PIMCO Enhanced Short Maturity Active ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mint#NYSE">MINT</a>); the largest actively managed ETF, and the JPMorgan Ultra-Short Income ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jpst#NYSE">JPST</a>). JPST was one of last year&#39;s fastest-growing bond funds.
&ldquo;With Fed rate hikes on the mind, ultra-short and short-term bond funds designed to reduce interest rate sensitivity and yet generate some income were most popular,&rdquo; said Rosenbluth. &ldquo;JPST and MINT added $5.0 billion and $4.3 billion, respectively, aided by strong 2.2% and 1.7% gains.&rdquo;
<h3>What&#39;s Next</h3>
Investors last year displayed enthusiasm for actively managed bond ETFs, a theme that could remain in place this year if the bond environment remains tricky.
&ldquo;While ETFs remain known for tracking indices such as Bloomberg Barclays Aggregate Bond Index, which was flat in 2018, actively managed fixed income ETFs gathered $21 billion of new money,&rdquo; said Rosenbluth. &ldquo;This was equal to the total inflows for the investment approach between 2015 and 2017.&rdquo;
Related Links:
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/19/01/12922150/it-may-be-time-to-look-at-this-etf-of-etfs">This ETF Could Be Ready To Soar</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/19/01/12922130/a-decent-outlook-for-consumer-discretionary-etfs">Consumer Cyclical ETFs Could Perk Up</a>

Analyst Color

JPST

Pimco Enhanced Short Maturity Strategy Fund

MINT

Investors Piled Into Bond ETFs Last Year

It may not have been easy money, but embracing short-term bonds and the corresponding exchange traded funds&nbsp;has easily been one of this year&#39;s most popular fixed-income trades.
With 2019 right around the corner, some bond market observers believe managing duration risk will again be a trade to embrace in the new year.
<h3>What Happened</h3>
The Federal Reserve raised interest rates four times in 2018, and while there is speculation the benchmark U.S. interest is getting close to &ldquo;normal&rdquo; or &ldquo;neutral,&rdquo; there is also chatter that the Fed has a couple more rate hikes in store for 2019.
In this rising rate environment, it&#39;s unsurprising that this year&#39;s most popular bond ETFs are all of the short-term variety. Of the three bond funds among this year&#39;s top 10 asset-gathering ETFs, each is a low or ultralow duration product.
<h3>Why It&#39;s Important</h3>
In terms of new assets added among bond ETFs, the iShares Short Treasury Bond ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/shv#NASDAQ">SHV</a>) and the iShares 1-3 Year Treasury Bond ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/shy#NYSE">SHY</a>) lead the way. SHV and SHY have added a combined $21.36 billion in new assets this year.
&ldquo;With a flat yield curve and relatively tight credit spreads today, you don&rsquo;t need to take on much interest rate risk or rely on higher-risk assets like stocks to generate income potential,&rdquo; <a href="https://www.blackrockblog.com/2018/12/28/year-end-bond-moves-to-consider/">BlackRock said in a Friday note</a>. &ldquo;High-quality ultrashort and short duration bonds are sitting in a sweet spot right now: they offer potentially attractive yields, and their short duration means they&rsquo;re less exposed to interest rate risk (duration).&rdquo;
SHY has an effective duration <a href="https://www.ishares.com/us/products/239452/?referrer=tickerSearch">of 1.85 years</a> while SHV&#39;s effective duration is 0.42 years.
<h3>What&#39;s Next</h3>
With the Fed not ruling out more rate hikes in 2019 and a surprisingly hawkish tone emerging from the central bank&#39;s December meeting, SHV and SHY could be popular again next year.
&ldquo;Consider that the two-year Treasury currently yields nearly 3 percent, according to Bloomberg,&rdquo; said BlackRock. &ldquo;Rotating into an ETF like the iShares 1-3 Year Treasury Bond ETF (<a href="https://www.ishares.com/us/products/239452/">SHY</a>) can be a low-cost way to up the overall credit profile of your portfolio.&rdquo;
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/12/12906842/a-pleasant-surprise-among-new-etfs">A Winner Among Rookie ETFs</a>
<a href="https://www.benzinga.com/news/18/12/12901723/5-worst-etfs-of-2018">2018&#39;s Worst ETFs</a>

News

With Bond ETFs, Keep It Short Again In 2019

Inflation, which has been mysteriously low for years, has accelerated in recent months, with expectations hovering near the <a href="https://finance.yahoo.com/news/u-10-yield-reaches-highest-130123668.html">highest level since 2014</a>. This is especially thanks to a rise in energy prices, increase in raw material costs, and a historically low unemployment rate, which suggests that wages could finally pick up.
	Growing inflationary expectations are pushing bond yields higher. The yields on 10-year Treasury notes jumped to 3.09% &mdash; its highest level since July 2011 &mdash; while two-year notes climbed to highest level since 2008 at 2.593%, raising expectations for further interest rate hikes from the Federal Reserve. The 10-year yield has rallied 76% over the past year, with a 13.8% gain in the last five days alone.
	In particular, the latest April retail sales data, which showed a 0.3% increase in sales and an upward revision in February and March sales, led to the latest spike in yields giving another sign of firmer inflation. &nbsp;
	As yields rises, returns of investors having big holdings in the fixed income world are hurt. And bond investors might experience heavy losses given that bond prices and yields have an inverse relationship. With the inclusion of ultra-short duration bonds ETFs, this hostile situation can be avoided. Investors could add these products to their portfolio in order to minimize the risk from rising interest rates.
	Why Ultra-Short Bond ETFs?
	Ultra-short bond ETFs invest in securities with durations of less than one year, thus making them less vulnerable to rising rates. As the duration or interest rate sensitivity is lower, these act as a cushion to rising rates. Additionally, the time until maturity is short enough, so the odds of a substantial increase in rates during the life of the bond are lower.
	As a result, an allocation to ultra-short duration ETFs could help in protecting the portfolio from rising rates. Below, we have presented some of these:
	iShares Short Treasury Bond ETF&nbsp;(NASDAQ: <a class="ticker" href="/stock/shv#NASDAQ">SHV</a>)
	The fund is actively managed and seeks to manage interest rate risk while maximizing current income through diversified exposure to short-term bonds. It holds 25 securities in its basket, with both average maturity and effective duration of 0.40 years. The product has amassed $13.6 billion in its asset base while trades in a solid volume of 1.3 million shares a day. It charges 15 bps in annual fees and has added 0.5% so far this year<a href="https://www.zacks.com/stock/news/301970/will-bond-etfs-sustain-their-april-momentum-in-may">.</a>
SPDR Bloomberg Barclays 1-3 Month T-Bill ETF&nbsp;(NYSE: <a class="ticker" href="/stock/bil#NYSE">BIL</a>)
	The product seeks to provide exposure to zero coupon U.S. Treasury securities that have a remaining maturity of 1-3 months. It follows the Bloomberg Barclays 1-3 Month U.S. Treasury Bill Index, holding 9 securities in its basket. Both average maturity and effective duration comes in at 0.13 years. BIL has AUM of $3.5 billion and average daily volume of 859,000 shares. It charges 13 bps in annual fees and is up 0.5% in the year-to-date time frame.
	Goldman Sachs TreasuryAccess 0-1 Year ETF&nbsp;(NYSE: <a class="ticker" href="/stock/gbil#NYSE">GBIL</a>)
	The fund seeks to track the Citi US Treasury 0&ndash;1 Year Composite Select Index, which is designed to measure the performance of U.S. Treasury Obligations with a maximum remaining maturity of one year, through an easy access vehicle. Holding 14 securities in its basket, it has average maturity and effective duration of 0.34 years each. The ETF has an expense ratio of 0.12% and trades in a lower volume of 77,000 shares. It has amassed $1.2 billion in its asset base and has gained 0.2% so far this year.
	JPMorgan Ultra-Short Income ETF&nbsp;(BATS:JPST)
	JPST seeks to deliver current income while managing risk. It invests primarily in a diversified portfolio of short-term, investment-grade fixed and floating-rate corporate and structured debt while actively managing credit and duration exposure. The fund holds 390 securities in its basket with effective duration of 0.50 years. It has accumulated $641.4 million in its asset base while trades in a good volume of around 134,000 shares a day. It charges 18 bps in annual fees and is up 0.7% in the year-to-date time frame.
&nbsp;
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Futures

4 Ultra-Short Bond ETFs To Hedge Against Rising Rates

Year-to-date, three fixed income exchange-traded funds are among the top 10 ETFs in terms of new assets added. The iShares Short Treasury Bond ETF (NYSE: <a class="ticker" href="/stock/shv#NYSE">SHV</a>) and the iShares Core Aggregate Bond ETF (NYSE: <a class="ticker" href="/stock/agg#NYSE">AGG</a>) probably don&#39;t come as surprises regarding bond fund asset-gathering proficiency.
The Vanguard Total International Bond ETF (NASDAQ: <a class="ticker" href="/stock/bndx#NASDAQ">BNDX</a>) is making a name for itself as well and doing so with scant exposure to U.S. debt. At the end of the first quarter, BNDX allocated just 3 percent of its weight to U.S. bonds. The fund&#39;s total North American exposure was just 8.40 percent, <a href="https://personal.vanguard.com/us/funds/snapshot?FundId=3711&amp;FundIntExt=INT&amp;funds_disable_redirect=true#tab=2">according to issuer data</a>.
<h3>
	What Happened</h3>
Year-to-date, investors have added $2.31 billion to BNDX, good for the third-best total among U.S.-listed fixed income ETFs and the 10th-best among all US-listed ETFs. At the end of the first quarter, BNDX had $11.1 billion in assets under management. The fund has seen second-quarter inflows of just over $379 million.
BNDX tracks the Bloomberg Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index (USD Hedged). As its name implies, that index hedges currency risk, meaning that if the recent uptick in the dollar is sustainable, more investors could be drawn to BNDX.
<h3>
	Why It&#39;s Important </h3>
Investors&#39; increased interest in BNDX likely isn&#39;t yield-driven. The ETF&#39;s yield is just 2.22 percent, typically not enough to get investors interested in international debt when 10-year Treasuries are well above that range.
Investors could be leaning to BNDX based on the notion that few if any of its marquee geographic exposures are likely to raise interest rates this year. That or market participants are favoring BNDX as a way to bet on a resurgent dollar while generating some income.
<h3>
	What&#39;s Next </h3>
Credit risk isn&#39;t an issue with BNDX as 83 percent of its 4,815 holdings are rated AAA, AA or A. The ETF&#39;s duration is 7.9 years with an average effective maturity of 9.4 years. In the absence of surprise interest rate cuts by member countries, BNDX&#39;s near-term capital appreciation potential could be driven in large part by the U.S. dollar.
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/04/11562008/investing-international-multi-factor-etfs">Evaluating International Multi-Factor ETFs</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/04/11562005/the-domestic-advantage-helping-small-cap-etfs">Help For Small-Cap ETFs</a>

BNDX

One Of This Top Asset-Gathering Bond ETFs Has Little US Debt

Some exchange-traded funds provide investors with an alternative to money markets and other low-yielding cash instruments. The newest addition to that field is the PowerShares Exchange-Traded Fund Trust II (NYSE: CLTL), which debuted Thursday.
This PowerShares treasury collateral portfolio follows the ICE U.S. Treasury Short Bond Index. 
<h3>CLTL's Index</h3>
&ldquo;The Index measures the performance of US Treasury Obligations with a maximum remaining term to maturity of 12 months. The Fund is not a money market fund and does not attempt to maintain a stable net asset value (NAV),&rdquo; according to <a href="https://www.invesco.com/portal/site/us/financial-professional/etfs/product-detail?productId=CLTL">Invesco PowerShares</a>, the fourth-largest U.S. ETF issuer.
All of CLTL&#39;s 74 holdings have maturities that do not exceed one year. The holdings in the new ETF are rated AA by Standard &amp; Poor&#39;s and Aaa by Moody&#39;s.
<h3>Catalysts And Politics</h3>
CLTL competes against established ETFs &mdash; such as the iShares Barclays Short Treasury Bond Fnd (NYSE: <a class="ticker" href="/stock/shv#NYSE">SHV</a>), which tracks the same index as the new PowerShares offering. With new <a href="https://www.benzinga.com/news/17/01/8905533/ftc-chair-edith-ramirez-notable-mlm-opponent-to-step-down-next-month">money market rules</a> on the horizon, there could be an increasing market for ETFs such as CLTL and SHV.
In an effort to avoid &ldquo;another debacle in money market funds after the financial downturn, the Securities and Exchange Commission is expected to implement a round of new rules that could change the way the $2.7 trillion money market works, which could potentially trigger billions in outflows from these traditionally safe investments and opening up opportunities in cash-alternatives like ultra-short-duration bond ETFs, like CLTL,&rdquo; reported <a href="http://www.etftrends.com/2017/01/powershares-launches-ultra-short-term-bond-etf-cash-alternative/">ETF Trends</a>.
CLTL charges just 0.08 percent per year, or $8 on a $10,000 investment. That is significantly less expensive than the 0.15 percent per year charged by the rival SHV.

A New ETF That's An Alternative To Cash

As global equity markets have seen increased turbulence to start 2016, investors have been running to safe-haven destinations. That includes exchange-traded funds holding U.S. government bonds. Professional investors are expected to boost their usage of <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/11/5994963/november-outflows-reflect-etf-investors-view-on-fed">fixed-income ETFs </a>with nearly two-thirds already owning bond ETFs, according to a recent Greenwich Associates study.
Year-to-date, five of the top 10 asset gathering ETFs are fixed income funds, and each member of that quintet is a U.S. government bond fund &ndash; led by iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE: <a class="ticker" href="/stock/tlt#NYSE">TLT</a>). Barely more than a month ago, longer-dated government bond ETFs, such as TLT, looked like they could be in trouble after the Federal Reserve boosted interest rates for the first time in nearly a decade. 
<Bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/01/6168671/a-different-spin-on-the-traditional-bond-etf">A Different Spin On The Traditional Bond ETF</a></bzrelatedlink>
<h3>The Fed And Bond ETFs</h3>
&ldquo;Continuing worries about the impact of ongoing economic volatility has seen the bond market on both sides of the Atlantic move into full risk off mode over the last fortnight,&rdquo; said <a href="http://www.markit.com/Commentary/Get/27012016-Credit-Uncertainty-sees-market-load-up-on-government-bonds">Markit</a> in a recent note. &ldquo;The risk perceptions in corporate bonds, as gauged by the benchmark spread in euro and dollar investment grade bonds, had held steady near the levels seen at the start of the year as late as January 10, but fears around the health of the global economy have seen that measure of market uncertainty surge to levels not seen since 2012.&rdquo;
TLT has added $1.66 billion in new assets this year, while investors have poured $1.32 billion into the iShares Barclays 7-10 Year Treasry Bnd Fd (NYSE: <a class="ticker" href="/stock/ief#NYSE">IEF</a>). IEF has a 30-day SEC yield of 1.88 percent and an effective duration of almost 7.6 years.
&ldquo;According to <a href="https://www.google.co.uk/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=1&amp;cad=rja&amp;uact=8&amp;ved=0ahUKEwjIit_k88nKAhWI_nIKHWL5DyEQFggyMAA&amp;url=https%3A%2F%2Fwww.markit.com%2FProduct%2FETP&amp;usg=AFQjCNFTtP8rPaoahU8QjlKZ88TqhBtqnw&amp;sig2=HJl-hvtV8l4jCJ1wFzpVTw&amp;bvm=bv.112766941,d.bGQ">Markit&rsquo;s ETP service</a>, Sovereign bond funds listed in Europe and America have seen around $10 billion of inflows so far in January which puts the asset class on track for its best monthly inflow since February 2014,&rdquo; said Markit. 
The iShares Barclays 1-3 Year Treasry Bnd Fd (NYSE: <a class="ticker" href="/stock/shy#NYSE">SHY</a>) rounds out the top five asset-gathering ETFs to this point in 2016. SHY has hauled in $1.16 billion in new money. No ETF has seen greater inflows than the $2.69 billion added by the iShares Barclays Short Treasury Bond Fnd (NYSE: <a class="ticker" href="/stock/shv#NYSE">SHV</a>). SHV has an effective duration of just 0.38 years. 
&ldquo;American investors have proven to be the most eager to ride this trend as the 88 government bond funds listed in the region have taken the lion&rsquo;s share of inflows after attracting $8.5 billion of new assets. This represents a significant 13 percent of the $62 billion managed by these funds since the start of the year,&rdquo; added Markit.
Image Credit: By Roman Boed [<a href="http://creativecommons.org/licenses/by/2.0">CC BY 2.0</a>], <a href="https://commons.wikimedia.org/wiki/File%3AThe_US_Treasury_Department.jpg">via Wikimedia Commons</a>

Intraday Update

Investors Load Up On Bond ETFs As Markets Remain Volatile

Despite global volatility and a lack of clarity regarding when the Federal Reserve will raise interest rates, U.S.-listed exchange-traded funds continue to gather assets at breakneck speed.

	After adding $19 billion last month, exchange-traded products trading in the United States, including ETFs and exchange-traded notes (ETNs) have hauled in $145 billion in new assets through the first nine months of this year &ndash; a record for that time frame, according to <a href="http://etfgi.com/news/detail/newsid/686">ETFGI</a>, a London-based ETF research firm.&nbsp;

	Last month, fixed-income ETFs were the dominant asset gatherers, accounting for half of the month&#39;s inflows after the Federal Reserve declined to boost borrowing costs following its September meeting. During the third quarter, five of the top 10 asset-gathering ETFs <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/10/5905516/forget-the-fed-investors-are-loving-bond-etfs">were bond funds</a>, a quintet that includes the iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE: <a class="ticker" href="/stock/tlt#NYSE">TLT</a>),iShares Short Treasury Bond Fnd (NYSE: <a class="ticker" href="/stock/shv#NYSE">SHV</a>) and the SPDR Lehman 1-3 Month T Bill (ETF) (NYSE: <a class="ticker" href="/stock/bil#NYSE">BIL</a>). 
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/10/5928973/yes-this-equal-weight-etf-really-works">Yes, This Equal-Weight ETF Really Works</a></bzrelatedlink>
<h3>Asset-Gathering ETF Trend</h3>
That data jibes with recent data from Charles Schwab Corp. (NYSE: <a class="ticker" href="/stock/schw#NYSE">SCHW</a>). The seventh-largest U.S. ETF issuer said in its <a href="http://www.benzinga.com/news/15/10/5926084/charles-schwab-continues-etf-ascent">Schwab Third-Quarter Snapshot</a> that half of the third-quarter inflows across its ETF platform were allocated to bond funds.
That trend is continuing again in the fourth quarter as four of the top five asset-gathering ETFs and five of the top 10 are fixed income funds. In the current quarter, investors are favoring corporate bond funds, including high-yield fare, such as the SPDR Barclays Capital High Yield Bnd ETF (NYSE: <a class="ticker" href="/stock/jnk#NYSE">JNK</a>), the second-largest junk bond ETF.
&ldquo;YTD through the end of September 2015, ETFs/ETPs have gathered record net inflows of US$145.4 billion. Equity ETFs/ETPs gathered the largest net inflows YTD with US$91.6 billion, followed by fixed income ETFs/ETPs with US$38.9 billion and commodity ETFs/ETPs with US$1.1 billion,&rdquo; according to ETFGI.
<h3>Leaders In Asset-Gathering</h3>
BlackRock, Inc. (NYSE: <a class="ticker" href="/stock/blk#NYSE">BLK</a>)'s iShares was the top asset gatherer among ETF issuers last month, followed by State Street Corp (NYSE: <a class="ticker" href="/stock/stt#NYSE">STT</a>) State Street Global Advisors.
&ldquo;iShares gathered the largest net ETF/ETP inflows YTD with US$58.2 billion, followed by Vanguard with US$52.8 billion, WisdomTree Investments, Inc. (NASDAQ: <a class="ticker" href="/stock/wetf#NASDAQ">WETF</a>) with US$19.6 billion, Deutsche Bank with US$16.4 billion, and Schwab ETFs with US$9.8 billion in net inflows,&rdquo; noted ETFGI.
<h3>Forerunners</h3>
Half of the top 10 asset-gathering ETFs on a year-to-date basis are iShares funds, while three are Vanguard funds. The other two, the top two in fact, are currency hedged ETFs sponsored by WisdomTree and Deutsche Bank. The WisdomTree Europe Hedged Equity Fund (WisdomTree Inter Hedged Eq Fund (NYSE: <a class="ticker" href="/stock/hedj#NYSE">HEDJ</a>)) and the Deutsche X-trackers MSCI EAFE Hedged Equity ETF ( DBX ETF Trust (NYSE: <a class="ticker" href="/stock/dbef#NYSE">DBEF</a>)) have added over $27.5 billion in new assets combined this year.
Image Credit: <a href="https://pixabay.com/en/cigarettes-ashtray-money-621346/">Public Domain</a>

Sector ETFs

Broad U.S. Equity ETFs

Pre-Market Outlook

DBEF

HEDJ

SCHW

WETF

Year-To-Date ETF Inflows Jump To A Record $145 Billion

It sounds like a conversation one might have with his or her irascible grandfather or Donald Trump: The United States owes China a lot of money by way of all the U.S. Treasurys China has gobbled up over the years, and one day, China is going to come calling, wanting to be paid.
That day may have already arrived. Sure, two days of surging equity markets is playing a part, but it is worth noting 10-year Treasury yields have jumped nearly 6 percent over the past five days. Bond yields rise as prices fall, and prices fall, usually, because investors are selling. China is doing that with some of its massive Treasury stakes because it needs dollars to support its recently devalued currency, the yuan.
<h3>China's Actions</h3>
&ldquo;The People&rsquo;s Bank of China has been offloading dollars and buying yuan to support the exchange rate, a policy that&rsquo;s contributed to a $315 billion drop in its foreign-exchange reserves over the last 12 months.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/analyst-ratings/analyst-color/15/08/5794683/exclusive-bmo-isnt-sweating-china">Exclusive: BMO Isn't Sweating China</a></bzrelatedlink>
&quot;The $3.65 trillion stockpile will fall by some $40 billion a month in the remainder of 2015 because of the intervention, according to the median estimate in a Bloomberg survey,&rdquo; reported <a href="http://www.bloomberg.com/news/articles/2015-08-27/china-said-to-sell-treasuries-as-dollars-needed-for-yuan-support">Bloomberg News</a>.
Recent data suggest China held $1.48 trillion worth of Treasurys, according to Bloomberg. Said differently, China&#39;s Treasury stake is more than double Apple Inc. (NASDAQ: <a class="ticker" href="/stock/aapl#NASDAQ">AAPL</a>)'s market value. China&#39;s sales of Treasurys may actually have been well-timed because some experts believe China was selling U.S. government debt as global stocks were sinking, meaning other investors were rushing into Treasurys and China&#39;s sales actually did not cause soaring Treasury yields.
<h3>Is It True?</h3>
Data suggest there might be something to that line of thinking. For the week ended August 25, no ETF has added more than the $1 billion taken in by the iShares Barclays Short Treasury Bond Fnd (NYSE: <a class="ticker" href="/stock/shv#NYSE">SHV</a>). SHV has an effective duration of just 0.41 years, so its 30-day SEC yield is a scant 0.16 percent. Duration is a bond&#39;s sensitivity to interest rate changes.
Recent enthusiasm for SHV &ldquo;clearly reflects levels of panic that institutional investors have experienced in recent sessions watching the SPX fall from a 2100 handle down to the 1800s before today&rsquo;s rebound back to the 1977 level, at least temporarily,&rdquo; said <a href="http://streetonefinancial.com/">Street One Financial</a> Vice President Paul Weisbruch in a note out Thursday.
The iShares Barclays 1-3 Year Treasury Bnd Fd (NYSE: <a class="ticker" href="/stock/shy#NYSE">SHY</a>) has also been a popular destination in recent days. SHY added nearly $526 million for the week ended August 25, better inflows than all but three ETFs over that span. Apparently, investors are not too concerned about China dumping longer Treasurys, because the iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE: <a class="ticker" href="/stock/tlt#NYSE">TLT</a>), an ETF with an effective duration of 17.26 years, has added $300.7 million in recent days.
On an incremental basis, some traders are betting on more upside for longer-dated Treasury yields. Whether China is the catalyst or not, the Direxion Daily 20 Year Plus Treasury Br (NYSE: <a class="ticker" href="/stock/tmv#NYSE">TMV</a>), an ETF that attempts to deliver three times the daily inverse performance of an index comprised of longer-dated Treasurys, has seen August inflows of $14.3 million.

Emerging Markets

Events

Global

Direxion Daily 20+ Year Treasury Bear 3X Shares

Blame China If Your Treasury ETF Is Falling

The recent volatility in the stock market has brought to light many unique products that take advantage of investor fear. This includes inverse, leveraged and VIX futures funds such as the iPath S&amp;P 500 VIX Short-Term Futures ETN (VXX).

	While those aggressive vehicles garner exciting headlines for fast-paced moves in the trading community, it is generally too speculative for most investors.

	So where are ETF investors hiding out during this tumultuous period?

	The answer, not surprisingly, is cash and short-term Treasuries. According to <a href="http://www.etf.com/etfanalytics/etf-fund-flows-tool.html">fund flow data</a> from October 15 to October 21, the top two ETFs for net inflows were the iShares 1-3 Year Treasury Bond ETF (NYSE: <a class="ticker" href="/stock/shy#NYSE">SHY</a>) and iShares Short Treasury Bond Fnd&nbsp;(NYSE: <a class="ticker" href="/stock/shv#NYSE">SHV</a>).

	<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/etfs/sector-etfs/14/10/4940333/boost-your-technology-dividends-with-a-unique-covered-call-etf">Boost Your Technology Dividends With A Unique Covered Call ETF</a></bzrelatedlink>

	SHY gained nearly $2 billion in assets, while SHV increased its total by more than $1 billion over the last week. On the flip side, the SPDR S&amp;P 500 ETF (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>) lost nearly $10 billion during that same period.

	<a href="https://www.benzinga.com/imce?app=nomatter%7Cimceload@imceInline.load#" onclick="imce.send('shy.png'); return false;" style="font-size: 13px;" title="Insert file"><img alt="shy.png" height="184" src="https://www.benzinga.com/files/u79448/shy.png" width="360" /></a>

	Often times investors that are anticipating a deeper correction will trade in their risk assets such as stocks and commodities for short-duration Treasuries, which are considered safer instruments.

	However, with interest rates trading near historical lows, these short-term Treasury bond ETFs offer a very meager yield. As an example, SHY offers a 30-day SEC yield of just 0.33 percent. That&#39;s one third of 1 percent per year for the privilege of owning a credit-risk free ETF with very low sensitivity to interest rates.

	This spike in inflows to short-duration Treasury ETFs is likely the result of large portfolios seeking short-term holding places instead of a traditional money market fund. However, that can certainly develop into a longer term hiding spot if stocks remain on uncertain footing.

	ETF fund flows are known to chase top performing areas of the market, particularly when trend changes force the hand of investors looking to shelter their gains or profit from new opportunities.

ETF Investors Are Hoarding Cash On Stock Volatility

Here is the ETF Professor's ETF Watch List for Friday, April 26, 2013.

Can the rally in the iShares Gold Trust (NYSE: <a class="ticker" href="/stock/iau#NYSE">IAU</a>) and the Market Vectors Gold Miners ETF (NYSE: <a class="ticker" href="/stock/gdx#NYSE">GDX</a>) be trusted?

Give the iShares Dow Jones US Healthcare Provider Index Fund (NYSE: <a class="ticker" href="/stock/ihf#NYSE">IHF</a>) a look.

GDP report play: SPDR S&amp;P Homebuilders ETF (NYSE: <a class="ticker" href="/stock/xhb#NYSE">XHB</a>).

Emerging markets plays of the day: Market Vectors Egypt ETF (NYSE: <a class="ticker" href="/stock/egpt#NYSE">EGPT</a>), WisdomTree India Earnings ETF (NYSE: <a class="ticker" href="/stock/epi#NYSE">EPI</a>) and the iShares S&amp;P Latin America 40 Index Fund (NYSE: <a class="ticker" href="/stock/ilf#NYSE">ILF</a>).

Forex play of the day: ProShares UltraShort Yen (NYSE: <a class="ticker" href="/stock/ycs#NYSE">YCS</a>).

Bond play of the day: iShares Barclays Short Treasury Bond Fund (NYSE: <a class="ticker" href="/stock/shv#NYSE">SHV</a>).

Emerging Market ETFs

Currency ETFs

EGPT

Market Vectors ETF Trust Market Vectors Gold Miners

iShares Dow Jones US Health Care Provides Index Fund

iShares Trust S&P Latin America 40 Index Fund

ETFs to Watch April 26, 2013 (IHF, SHV, XHB)

Financial markets continue to evolve, but some portfolio managers and market theorists still place an emphasis on proper asset allocation. To be sure, there's something to be said for having a portfolio that stretches beyond the confines of just one asset class. 

Fortunately for investors that don't find the subject of proper asset allocation to be stimulating conversation, there are ETFs to help with the chore of ensuring one's portfolio has the look of being allocated the way some of the pros would recommend. 

Not surprisingly, asset allocation funds are another are of the exchange-traded products universe that ETF sponsors are looking to for future growth as more of these funds <a href="http://www.benzinga.com/markets/bonds/12/04/2500353/advisorshares-may-list-business-cycle-etf-dbiz-hdge-hyld">are seen coming to market</a>. 

For now, we'll focus on the currently existing products starting with the...

iShares S&amp;P Conservative Allocation Fund (NYSE: <a class="ticker" href="/stock/aok#NYSE">AOK</a>)
The iShares S&amp;P Conservative Allocation Fund, which will turn four years old later this year, is really an ETF fund of funds as its top-10 holdings are all other iShares ETFs. Looking at the asset class breakdown, AOK is definitely conservative as U.S. fixed income funds account for almost 74% of the fund's weight. Domestic and global stocks account for the rest. 

The iShares Barclays Aggregate Bond Fund (NYSE: <a class="ticker" href="/stock/agg#NYSE">AGG</a>) by itself commands an allocation of nearly 30% in AOK. Other holdings include the iShares Barclays Short Treasury Bond Fund (NYSE: <a class="ticker" href="/stock/shv#NYSE">SHV</a>) and the iShares iBoxx $ High Yield Corporate Bond Fund (NYSE: <a class="ticker" href="/stock/hyg#NYSE">HYG</a>).

iShares S&amp;P Growth Allocation Fund (NYSE: <a class="ticker" href="/stock/aor#NYSE">AOR</a>)
The iShares S&amp;P Growth Allocation Fund is also nearly four years old and it's one of the largest asset allocation ETFs on the market today with over $136 million in assets under management. Some investors might assume AOR is loaded with speculative fare because "growth" is in the ETF's name. That's not the case. 

The iShares S&amp;P 500 Index Fund (NYSE: <a class="ticker" href="/stock/ivv#NYSE">IVV</a>) accounts for 34.4% of AOR's weight while AGG chimes in at almost 20%. The fund also features exposure to the iShares S&amp;P SmallCap 600 Index Fund (NYSE: <a class="ticker" href="/stock/ijr#NYSE">IJR</a>) and the iShares MSCI Emerging Markets Index Fund (NYSE: <a class="ticker" href="/stock/eem#NYSE">EEM</a>).

PowerShares RiverFront Tactical Growth &amp; Income Portfolio (NYSE: <a class="ticker" href="/stock/pca#NYSE">PCA</a>)
The PowerShares RiverFront Tactical Growth &amp; Income Portfolio, which will turn four in a few weeks and is home to $17.3 million in AUM, uses a similar approach to AOK and AOR in that it's an ETF fund of funds. 

PCA current asset allocation breakdown is almost 41% fixed income, just over 40% to U.S. stock ETFs and 15.1% to international stock ETFs. Top-10 holdings include the PowerShares Fundamental High Yield Corporate Bond ETF (NYSE: <a class="ticker" href="/stock/phb#NYSE">PHB</a>), the PowerShares Dividend Achievers ETF (NYSE: <a class="ticker" href="/stock/pfm#NYSE">PFM</a>) and the PowerShares Hi-Yield Dividend Achievers ETF(NYSE: <a class="ticker" href="/stock/pey#NYSE">PEY</a>). PCA also features iShares, SPDRs, Vanguard and WisdomTree ETFs among its holdings.

Global X Permanent ETF (NYSE: <a class="ticker" href="/stock/perm#NYSE">PERM</a>)
The Global X Permanent ETF debuted in February and has thus far done a fine job of attracting assets from investors as the fund is now home to $11.1 million in AUM. The ETFS Physical Swiss Gold Shares (NYSE: <a class="ticker" href="/stock/sgol#NYSE">SGOL</a>) is PERM's top holding at almost 20% of the fund's weight and the ETFS Physical Silver Shares (NYSE: <a class="ticker" href="/stock/sivr#NYSE">SIVR</a>) accounts for almost 5%.

Long-term and short-term Treasuries each receive allocations of roughly 25%. The other quarter of PERM's weight goes to a mix of domestic and international equities, but unlike the other funds on this list, PERM does hold common stocks and ADRs such as Apple (Nasdaq: <a class="ticker" href="/stock/aapl#Nasdaq">AAPL</a>), Chevron (NYSE: <a class="ticker" href="/stock/cvx#NYSE">CVX</a>), Royal Dutch Shell (NYSE: RDS-A) and Rio Tinto (NYSE: <a class="ticker" href="/stock/rio#NYSE">RIO</a>). Two Vanguard ETFs are also found among PERM's equity holdings.

For more on forgotten ETFs, please click <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/04/2476979/4-ex-etfs-your-broker-forgot-to-mention-dtn-axen-fdt">HERE</a>.

Commodities

After-Hours Center

PowerShares RiverFront Tactical Growth & Income Portfolio

PERM

PowerShares Exchange Traded Fund Trust Dividend Achievers Portfolio

PowerShares Fundamental High Yieldorate Bond Portfolio

SGOL

SIVR

4 Asset Allocation ETFs Your Broker Forgot to Mention (PERM, PCA)

BlackRock extended its target-date series of ETFs with the recent (8/18/11) introduction of iShares S&amp;P Target Date 2045 Index Fund (TZW) and iShares S&amp;P Target Date 2050 Index Fund (TZY).  The lineup now includes ETFs from 2010 – 2050, in five-year increments, plus the iShares S&amp;P Target Date Retirement Income Fund (<a class="ticker" href="/stock/tgr#">TGR</a>).  All ETFs in the series hold other iShares ETFs instead of individual stocks and bonds.
Target-date funds are one-stop shopping for investors who want to avoid the details of an asset allocation plan.  An additional benefit is that the allocations are automatically adjusted over time, becoming gradually more conservative as the target date approaches.  Investor flows into these ETFs has generally lagged.  This could change as they make their way into more 401k plans, where target-date funds are often the default investment option.
For the 2045 TZW fund, the current asset class breakdown is Domestic Equity 59.0%, International Equity 29.3%, Domestic Fixed Income 10.3%, and Domestic Real Estate 1.4%.  TZY, the 2050 fund, has slightly less Domestic Fixed Income at 8.4% with the other asset classes receiving proportionate increases.  Neither ETF includes gold or other commodities.
For TZW 2045, current holdings are iShares S&amp;P 500 (<a class="ticker" href="/stock/ivv#">IVV</a>) 46.4%, iShares MSCI EAFE (<a class="ticker" href="/stock/efa#">EFA</a>) 25.3%, iShares S&amp;P MidCap 400 (<a class="ticker" href="/stock/ijh#">IJH</a>) 7.5%, iShares Barclays Aggregate Bond (<a class="ticker" href="/stock/agg#">AGG</a>) 6.8%, iShares S&amp;P SmallCap 600 (<a class="ticker" href="/stock/ijr#">IJR</a>) 5.1%, iShares MSCI Emerging Markets (<a class="ticker" href="/stock/eem#">EEM</a>) 4.0%, iShares iBoxx High Yield Corporate Bond (<a class="ticker" href="/stock/hyg#">HYG</a>) 1.8%, iShares Barclays Short-Term Treasury (<a class="ticker" href="/stock/shv#">SHV</a>) 1.7%, and iShares Cohen &amp; Steers Realty Majors (<a class="ticker" href="/stock/icf#">ICF</a>) 1.4%.
The expense ratio for each new ETF is capped at 0.32%, which is quite reasonable for fund-of-funds products.  BlackRock waives 0.14% from the 0.46% gross expense since they will also earn the 0.21% acquired fund expenses on the underlying iShares funds.
The <a href="http://investwithanedge.com/tdxdb-x-wisdomtree-and-velocityshares-changes" target="_blank">db-X Target Date ETFs</a> are currently the only competition to iShares in this arena.
The <a href="http://us.ishares.com/content/stream.jsp?url=/content/en_us/repository/resource/prospectus/target_date_prospectus.pdf&amp;mimeType=application/pdf" target="_blank">prospectus</a> (pdf) covers TZW and TZY along with all the existing ETFs in the iShares S&amp;P Target-Date Series.  Other information can be found in the <a href="http://us.ishares.com/product_info/fund/overview/TZW.htm" target="_blank">TZW 2045 overview</a>, <a href="http://us.ishares.com/content/stream.jsp?url=/content/en_us/repository/resource/fact_sheet/tzw.pdf&amp;mimeType=application/pdf" target="_blank">TZW 2045 fact sheet</a> (pdf), <a href="http://us.ishares.com/product_info/fund/overview/TZY.htm" target="_blank">TZY 2050 overview</a>, and <a href="http://us.ishares.com/content/stream.jsp?url=/content/en_us/repository/resource/fact_sheet/tzy.pdf&amp;mimeType=application/pdf" target="_blank">TZY 2050 fact sheet</a> (pdf).
Disclosure covering writer, editor, and publisher:  No positions in any of the securities mentioned.  No positions in any of the companies or ETF sponsors mentioned.  No income, revenue, or other compensation (either directly or indirectly) received from, or on behalf of, any of the companies or ETF sponsors mentioned.
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iShares Trusthen & Steers Realty Majors Index Fund

iShares S&P Target Date Retirement Income Index Fund

iShares Target Date Series Extended to 2050

억만장자 투자자 차마스 팔리하피티야는 지난 몇 주 동안 시장에 대한 불길한 신호에 경종을 울리며 심리가 크게 바뀌고 있음을 암시하고 있다.
무슨 일 있었나: 월요일(25일) 팔리하피티야는 엑스(X) 게시물에서 "시장이 리스크 오프(위험 회피) 상태"라고 말하며, 바차트(Barchart) 게시물을 인용해 머니마켓펀드가 보유한 자산이 7조 2,400억 달러로 "사상 최고치"라는 놀라운 증가세를 보이고 있다고 밝혔다. 
투자자들은 시장과 경제의 혼란이 심할 때 머니마켓펀드 또는 현금성 자산을 선호하게 된다. 이러한 자산의 급증은 거시적 불확실성이 지속되고 금리 기대치가 변화하는 가운데 투자자들의 경계심이 커지고 있음을 나타낸다. 
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Market is risk-off. <a href="https://t.co/JkULbZlO1u">https://t.co/JkULbZlO1u</a>&mdash; Chamath Palihapitiya (@chamath) <a href="https://twitter.com/chamath/status/1927137685799321637?ref_src=twsrc%5Etfw">May 26, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
팔리하피티야는 한 줄짜리 게시물에서 투자자들이 주식과 같은 위험 자산에서 벗어나 더 안전한 수익률 창출 상품을 선호하며 사태가 진정되기를 기다리고 있다고 했다. 
팔리하피티야가 인용한 바차트 데이터를 인용한 코이핀 차트(KoyFin Charts)에 따르면, 연준이 공격적인 금리 인상을 시작한 2022년부터 머니마켓펀드로의 자금 유입이 급격히 증가하여 투자자들의 수익률이 크게 높아졌다.
왜 중요한가: 머니마켓펀드의 자산 증가는 투자자들 사이에서 불안감의 신호로 여겨지지만, 마켓 이어(The Market Ear) 같은 시장 관찰자들은 이러한 자금이 &#8216;드라이파우더'(dry powder) 즉, 올바른 신호를 받으면 다시 시장으로 돌아올 현금 보유고에 불과하다고 생각한다.
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Now that&#39;s some dry powder! $7 trillion sitting in U.S. money market funds. <a href="https://t.co/xT7nEMBV52">pic.twitter.com/xT7nEMBV52</a>&mdash; The Market Ear (@themarketear) <a href="https://twitter.com/themarketear/status/1926948542825771487?ref_src=twsrc%5Etfw">May 26, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
5월 21일로 끝나는 한 주 동안 총 머니마켓펀드의 자산은 6조 9,700억 달러로, 지난 한 주 동안에만 7조 2,400억 달러로 자산이 크게 증가한 것으로 마켓 이어는 <a href="https://www.ici.org/research/stats/mmf" target="_blank" rel="noopener">보고했다.</a>
<figure class="wp-block-table">
<table class="has-fixed-layout">
<thead>
<tr>
<th>ETF (티커)</th>
<th class="has-text-align-center" data-align="center">2025년 4월 순 유입</th>
<th class="has-text-align-center" data-align="center">소유 자산</th>
</tr>
</thead>
<tbody>
<tr>
<td>SPDR Bloomberg 1-3 Month T-Bill ETF  (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BIL#NYSE">BIL</a>)</td>
<td class="has-text-align-center" data-align="center">66억 달러</td>
<td class="has-text-align-center" data-align="center">30~90일 만기의 순수 국채</td>
</tr>
<tr>
<td>iShares 0-3 Month Treasury Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SGOV#NYSE">SGOV</a>)</td>
<td class="has-text-align-center" data-align="center">55억 달러</td>
<td class="has-text-align-center" data-align="center">0~90일 만기의 초단기 국채</td>
</tr>
<tr>
<td>iShares Short Treasury Bond ETF  (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SHV#NASDAQ">SHV</a>)</td>
<td class="has-text-align-center" data-align="center">21억 달러</td>
<td class="has-text-align-center" data-align="center">1년 이내의 만기되는 국채</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">&#x2A;2025년 4월에 유입이 가장 많았던 머니 마켓 ETF: <a href="https://www.etf.com/sections/monthly-etf-flows/etf-inflows-resilient-amid-aprils-quick-ups-and-downs">출처</a>는 ETF.com</figcaption>
</figure>
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머니마켓펀드 자산 7조 2400억 달러 도달···차마스 팔리하피티야 "투자자 우려 상승" 경고

수요일 연방준비제도(연준)의 금리 0.5% 인하 결정은 투자자들을 머니마켓(자금 시장 또는 단기금융 시장) 펀드에서 장기 채권으로 <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40943496/fed-rate-cut-eases-debt-refinancing-for-smaller-cloud-computing-firms-analyst-flags" target="_blank" rel="noopener" data-google-interstitial="false">끌어들일 수</a> 있다고, 한 포트폴리오 관리자가 전했다.
미국 자산운용협회(Investment Company Institute)에 따르면, 머니마켓 펀드의 총 자산이 9월 18일 수요일까지 한 주 동안 200억 2천만 달러 감소하여 6.30조 달러로 줄어들었다. 과세 머니마켓 펀드 중 정부 펀드는 188억 2천만 달러, 프라임 펀드는 24억 2천만 달러 감소했다.
캐피털 그룹(Capital Group)의 채권 포트폴리오 매니저인 티모시 응(Timothy Ng)은 &#8220;역사적으로 우리는 수익률이 하락할 때 더 많은 자산이 장기 채권으로 이동하는 것을 보아왔으며, 올해 이미 그러한 일이 일부 발생했다고 생각한다&#8221;고 말했다.
&#8220;이 추세는 연준이 계속 금리를 인하하면 계속될 것으로 예상한다&#8221;고 그가 덧붙였다.
또한 읽어보세요: <a href="https://www.benzinga.com/real-estate/reit/24/09/40949753/mortgage-rates-near-6-demand-increases-for-refinancing-purchases">모기지 금리가 6%에 근접, 재융자 및 구매 수요 증가</a>
&#8220;이 흐름의 일부는 주식과 채권 모두로 이동할 것으로 생각하지만, 상대적인 규모는 경제 전망, 가치 평가 및 두 자산 클래스 간의 시장 심리에 따라 달라질 것이다&#8221;라고 그가 설명했다.
최근 몇 년 동안 머니마켓으로 많은 자산이 이동한 것은 머니마켓 수익률이 매우 매력적이었기 때문이지만, 연준이 올해 추가 금리 인하를 계획하고 있는 만큼 더 이상 그렇지 않을 수 있다고 그가 말했다.
그는 &#8220;이제 기대되는 만큼의 수익률을 얻지 못하고, 수익률이 하락함에 따라 포트폴리오의 듀레이션이 길어짐에 따라 발생하는 자산 가치 상승을 놓칠 위험이 있다&#8221;고 말했다.
가격 움직임: 머니마켓 펀드를 보유한 상장지수펀드(ETF)는 금요일 오후 늦게 거래에서 약간 상승했다.
<ul id="mntl-sc-block_7-0">
<li>iShares Short Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SHV#NASDAQ">SHV</a>)는 0.05% 상승했다.</li>
<li>BlackRock Short Maturity Bond ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/NEAR#BATS">NEAR</a>)는 0.06% 상승했다.</li>
<li>SPDR Bloomberg Barclays 1-3 Month T-Bill ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BIL#NYSE">BIL</a>)는 0.044% 상승했다.</li>
<li>Invesco Ultra Short Duration ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GSY#NYSE">GSY</a>)는 0.07% 상승했다.</li>
</ul>
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