ETFs across various categories pulled in just $2.9 billion in capital last week, pushing year-to-date inflows to $347 billion. International equity ETFs led the way with $4.3 billion in inflows, followed by $4 billion in U.S. fixed-income ETFs and $941.9 million in commodities ETFs. Meanwhile, U.S. equity ETFs saw outflows of $6.6 billion. 

SPDR Bloomberg 1-3 Month T-Bill ETF BIL, Vanguard Short-Term Bond ETF BSV, iShares Short Treasury Bond ETF SHV, VanEck Vectors Semiconductor ETF SMH and iShares 0-3 Month Treasury Bond ETF SGOV dominated the top creation list last week.

The slowdown in ETF inflows came amid heightened market volatility, which kept investors on edge. Federal Reserve Chair Jerome Powell’s warnings of severe economic consequences of escalating tariffs heightened volatility. All three major indices logged weekly losses for the third time in the last four weeks. The S&P 500 plunged 1.5% while the Dow Jones and the Nasdaq Composite Index tumbled 2.7% and 2.6%, respectively. 

Powell warned that trade tensions could spur inflation and slow down economic growth, creating a stage for stagflation. This compelled investors to seek defensive investments in short-term or ultra-short-term bonds (read: 6 Trade-Resilient ETFs for Investors).

These funds invest in ultra-short-term bonds and help investors keep aside money for a couple of weeks to a few months with almost no risk. In times of market downturns, these can act as a hedge, protecting the portfolio from significant losses. Unlike equities or longer-duration bonds, the value of cash-like ETFs is less likely to be affected by market turbulence, making them a reliable option during uncertain times.

We have detailed the ETFs below.

SPDR Bloomberg 1-3 Month T-Bill ETF (BIL)

SPDR Bloomberg 1-3 Month T-Bill ETF is the top asset creator, pulling in $2.9 billion in capital. It seeks to provide exposure to zero-coupon U.S. Treasury securities that have a remaining maturity of 1-3 months. It follows the Bloomberg 1-3 Month U.S. Treasury Bill Index, holding 23 securities in its basket. Average maturity and adjusted duration are 0.10 and 0.10 years, respectively. SPDR Bloomberg 1-3 Month T-Bill ETF has AUM of $49 billion and an average daily volume of 17 million shares. It charges 13 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (read: Defensive ETF Strategies to Follow Amid Market Carnage).

Vanguard Short-Term Bond ETF (BSV)

Vanguard Short-Term Bond ETF accumulated about $2.2 billion, taking its total AUM to $38 billion. It offers diversified exposure to the short-term, investment-grade U.S. bond market by tracking the Bloomberg U.S. 1–5 Year Government/Credit Float Adjusted Index. Vanguard Short-Term Bond ETF is home to 2,791 stocks with an effective maturity of 2.8 years and an average duration of 2.6 years. Vanguard Short-Term Bond ETF charges 3 bps in annual fees and trades in an average daily volume of 5 million shares.

iShares Short Treasury Bond ETF (SHV)

iShares Short Treasury Bond ETF gathered about $2 billion in capital. It provides exposure to U.S. Treasury bonds that mature in less than 1 year and follows the ICE Short US Treasury Securities Index. iShares Short Treasury Bond ETF holds three securities in its basket, with an average maturity of 0.31 years and an effective duration of 0.30 years. iShares Short Treasury Bond ETF has amassed $23.1 billion in its asset base while trading in a solid volume of 7.5 million shares a day. It charges 15 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk outlook.

VanEck Vectors Semiconductor ETF (SMH)

VanEck Vectors Semiconductor ETF saw inflows of $1.5 billion last week. It offers exposure to 26 companies involved in semiconductor production and equipment. It follows the MVIS US Listed Semiconductor 25 Index, which tracks the most liquid companies in the industry based on market capitalization and trading volume. VanEck Vectors Semiconductor ETF has managed assets worth $19.3 billion and charges 35 bps in annual fees and expenses. It trades in an average daily volume of 11.6 million shares and flaunts a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook (read: 3 Best Sector ETFs of Last Week).

iShares 0-3 Month Treasury Bond ETF (SGOV)

iShares 0-3 Month Treasury Bond ETF accumulated around $1 billion in its asset base last week. It offers exposure to U.S. Treasury bonds with remaining maturities less than or equal to three months. iShares 0-3 Month Treasury Bond ETF follows the ICE 0-3 Month US Treasury Securities Index with an average maturity of 0.11 years and an effective duration of 0.10 years. iShares 0-3 Month Treasury Bond ETF has AUM of $43.7 billion and trades in an average daily volume of 14.5 million shares. SGOV charges 9 bps in annual fees and has a Zacks ETF Rank #3.

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VanEck Semiconductor ETF (SMH): ETF Research Reports

iShares Short Treasury Bond ETF (SHV): ETF Research Reports

SPDR Bloomberg 1-3 Month T-Bill ETF (BIL): ETF Research Reports

Vanguard Short-Term Bond ETF (BSV): ETF Research Reports

iShares 0-3 Month Treasury Bond ETF (SGOV): ETF Research Reports

This article originally published on Zacks Investment Research (zacks.com).

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