SPDR Bloomberg Short Term International Treasury Bond ETF Price & Performance (BWZ)

Investors are increasingly turning to short-term U.S. Treasury bond funds, with inflows reaching $18.1 billion so far this month—a two-and-a-half-year high if the pace holds. This move comes amid broader bond fund outflows and heightened concerns over tariffs and recession risk.12

The SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) has attracted $8 billion in April as risk-averse investors seek safety in cash-like assets. This trend reflects growing uncertainty over Federal Reserve policy and ongoing market turbulence, with short-term Treasury ETFs outpacing other fixed-income categories.34

Recent ETF flows reveal a decisive move away from high-yield and riskier bond categories, with government bond and TIPS ETFs drawing $4.2 billion during recent market stress. Investors are favoring Treasuries as a hedge, while high-yield bond funds saw $3.6 billion in outflows this month.56