Investors poured billions into ultra-short-duration bond ETFs over the past month as rising rate-hike expectations made cash-like instruments more appealing. The iShares 0-3 Month Treasury Bond ETF SGOV gathered about $4.68 billion in assets, while the Vanguard 0-3 Month Treasury Bill ETF VBIL added roughly $1.15 billion, according to ETF Central data. The JPMorgan UltraShort Income ETF JPST, yielding 4.25% annually, attracted about $1.09 billion over the same period and has taken in $3.61 billion year-to-date. The PIMCO Enhanced Short Maturity Active ETF MINT, yielding 4.27%, pulled in about $218 million in the past month and $1.77 billion so far this year, while the iShares Short Duration Bond Active ETF NEAR, yielding 4.43%, gathered about $200 million over the month and $953 million year-to-date. The Federal Reserve's preferred inflation gauge hit a three-year high in May, and markets now see an 80% chance of a rate hike at the September meeting, driving two-year Treasury yields to 4.16%.
JPMorgan Chase & CoJPMorgan's ultra-short bond ETF JPST attracted $1.09B as rate-hike expectations rise, benefiting from higher yields.
Allianz SE VNA O.N.Vanguard's ultra-short Treasury bill ETF VBIL added $1.15B as rising rate-hike expectations drive inflows.