Short-Term Bond ETFs Rake In Billions Amid Recession Alarm Bells

Investors looking for a safe place to hide are shoveling money into ultra-short bond exchange-traded funds as Donald Trump’s economic policies stoke recessionary concerns and a stock-market rout.

The cohort has taken in more than $16 billion so far this year, led by products such as the iShares 0-3 Month Treasury Bond ETF (ticker SGOV), which has seen more than $7 billion come in. The fund took in $1.4 billion last week alone, its largest inflow on record, data compiled by Bloomberg show. And investors have added $3.2 billion to the SPDR Bloomberg 1-3 Month T-Bill ETF (BIL), about half of which came in last week in what is its biggest inflow since November 2023.