Ultra-short-term US Treasury bill ETFs have attracted approximately $51 billion in net inflows as investors abandon long-duration bonds for near-risk-free instruments. BlackRock’s iShares 0-3 Month Treasury Bond ETF, ticker SGOV, has drawn nearly $49 billion in inflows and now exceeds $104 billion in assets under management. Meanwhile, the iShares 20+ Year Treasury Bond ETF, the leading long-duration bond fund, has experienced $15 billion in outflows since September 2024. The world’s three largest asset managers, BlackRock, State Street and Vanguard, are now competing commercially to capture this wave of liquidity in ultrashort ETFs. This massive shift affects long-term bond yields, which in turn impacts borrowing costs for the US government, corporations and homebuyers.
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