Buyers pile into ultra-short term bond ETFs

|By:, SA News Editor

With short rates on the rise and forecast to continue rising, what's not to like about these funds?

Among those seeing big inflows are the Goldman Sachs Access Treasury 0-1 Year ETF (NYSEARCA:GBIL) and the SPDR Bloomberg Barclays 1-3 Month T-Bill ETF (NYSEARCA:BIL). GBIL saw a rush of $220M on Tuesday and $145M on Monday, bringing AUM above $2B for the first time ever.

It might be a "risk-off" move suggests Goldman's Michael Crinieri, with investors looking to build up some "dry powder" for a future downturn.

It's the equivalent of "putting your money under a mattress," says Bloomberg's Eric Balchunas.

Related ETFs: SHY, BIL, VGSH, SHV, SCHO, SPTS, RISE, DTUS, DTUL, TUZ, GBIL, CLTL

Subscribe for full text news in your inbox