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T-Bill ETFs Are Investor Favorite as Markets Gyrate
Shubham Saharan
19 min read

In This Article:

Investors wary of roiling equity markets are flocking to Treasury bill ETFs and international equity funds as fears of sticky inflation and high interest rates persist.

U.S. equity ETFs shed nearly $7 billion in February as markets seesawed on myriad economic data that pointed to the Federal Reserve keeping interest rates higher for longer. In January, U.S. equity ETFs brought in $1.4 billion. The S&P 500 lost 2.6% during the month after gaining 6% in January. The Nasdaq shed 1.1% for the month after leaping 10% the month prior.

Funds that saw the greatest outflows included the first and oldest U.S.-listed ETF, the SPDR S&P 500 ETF Trust (SPY), which lost $11.4 billion in February alone. Other top losers included the iShares Core S&P 500 ETF (IVV) and the SPDR S&P Dividend ETF (SDY), which bled $4.6 billion in February, according to ETF.com data.

International equity ETFs collected $7.6 billion during the month, a slump from the $20.2 billion that came in January.

The top asset-gathering international equity fund was the JPMorgan BetaBuilders Europe ETF (BBEU), which saw $2.1 billion in inflows last month.

On the other side of the ledger, investors flocked to Treasury-related ETFs as yields soared. The yield on the two-year Treasury note rose to 4.8% on Tuesday, its highest level since 2007. Meanwhile, the yield on the benchmark 10-year note briefly touched 4% on Wednesday for the first time since November of last year.

February’s top-performing ETF, the iShares Short Treasury Bond ETF (SHV), brought in $4.5 billion last month, while the iShares 0-3 Month Treasury Bond ETF (SGOV) and the SPDR Portfolio Short Term Treasury ETF (SPTS) collectively lured in almost $3 billion, ETF.com data shows.

U.S. fixed income ETFs brought in $862 million in February. Still, that’s short of the $20.8 billion that the asset class saw in January.


For a full list of January's top inflows and outflows, see the tables below:

 

Top Gainers (February 2023)

Ticker

Name

Issuer

Net Flows ($,mm)

AUM ($M)

% of AUM

YTD 2023 Net Flows($,M)

SHV

iShares Short Treasury Bond ETF

Blackrock

4,519.05

23,678.63

19.08%

3,282.37

BBEU

JPMorgan BetaBuilders Europe ETF

JPMorgan Chase

2,102.02

9,037.11

23.26%

5,670.58

JEPI

JPMorgan Equity Premium Income ETF

JPMorgan Chase

1,844.35

21,360.15

8.63%

4,196.11

BND

Vanguard Total Bond Market ETF

Vanguard

1,690.29

87,558.62

1.93%

2,496.30

VOO

Vanguard S&P 500 ETF

Vanguard

1,653.65

274,852.09

0.60%

2,138.20

VTI

Vanguard Total Stock Market ETF

Vanguard

1,611.72

276,290.08

0.58%

3,035.46

SGOV

iShares 0-3 Month Treasury Bond ETF

Blackrock

1,580.48

8,006.41

19.74%

1,599.36

SPTS

SPDR Portfolio Short Term Treasury ETF

State Street Global Advisors

1,453.96

5,413.13

26.86%

1,569.87

SCHD

Schwab U.S. Dividend Equity ETF

Charles Schwab

1,354.62

46,928.42

2.89%

2,781.03

QQQ

Invesco QQQ Trust

Invesco

1,325.90

156,942.32

0.84%

-3,163.22

 

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