Investors Bet $7B On Ultra-Short Term Bond ETFs, Chase 5% Returns Amid Market Volatility
Portfolio Pulse from Piero Cingari
Investors have poured $7 billion into ultra-short bond ETFs in August, seeking returns exceeding 5% amid market volatility. Over $2 billion has been invested in the SPDR Bloomberg 1-3 Month T-Bill ETF (NYSE:BIL), reversing the previous four months of capital outflows. Other funds such as the iShares 0-3 Month Treasury Bond ETF (NYSE:SGOV), Goldman Sachs Access Treasury 0-1 Year ETF (NYSE:GBIL), and the iShares Short Treasury Bond ETF (NYSE:SHV) have also seen significant inflows. The SPDR S&P 500 ETF Trust (NYSE:SPY) is bracing for its first monthly decline since February.
August 31, 2023 | 8:42 pm
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NEGATIVE IMPACT
The SPDR S&P 500 ETF Trust (SPY) is bracing for its first monthly decline since February.
The expected monthly decline in SPY indicates a potential decrease in investor interest, which could drive its price down in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 60
POSITIVE IMPACT
The SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) has seen over $2 billion inflows in August, reversing the previous four months of capital outflows.
The significant inflow of capital into BIL indicates a strong investor interest in the ETF, which could potentially drive its price up in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
The Goldman Sachs Access Treasury 0-1 Year ETF (GBIL) has attracted over $500 million in August.
The significant inflow of capital into GBIL indicates a strong investor interest in the ETF, which could potentially drive its price up in the short term.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
The iShares 0-3 Month Treasury Bond ETF (SGOV) has seen nearly $2 billion inflows in August.
The significant inflow of capital into SGOV indicates a strong investor interest in the ETF, which could potentially drive its price up in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The iShares Short Treasury Bond ETF (SHV) has attracted over $400 million in August.
The significant inflow of capital into SHV indicates a strong investor interest in the ETF, which could potentially drive its price up in the short term.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 70