- Fixed-income investors are steering clear of longer-term Treasuries amid volatility in bond yields and prices.
- Warren Buffett’s Berkshire Hathaway is reported to now own 5% of the short-term T-bill market.
- Ultra-short bond ETFs have been among the most popular exchange-traded funds with investors in 2025.
Investors always pay close attention to bonds, and what the latest movement in prices and yields is saying about the economy. Right now, the action is telling investors to stick to the shorter-end of the fixed-income market with their maturities.
“There’s lots of concern and volatility, but on the short and middle end, we’re seeing less volatility and stable yields,” Joanna Gallegos, CEO and founder of bond ETF company BondBloxx, said on CNBC’s “ETF Edge.”
The 3-month T-Bill right now is paying above 4.3%, annualized. The two-year is paying 3.9% while the 10-year is offering about 4.4%.
ETF flows in 2025 show that it’s the ultrashort opportunity that is attracting the most investors. The iShares 0-3 Month Treasury Bond ETF (SGOV) and SPDR Bloomberg 1-3 T-Bill ETF (BIL) are both among the top 10 ETFs in investor flows this year, taking in over $25 billion in assets. Only Vanguard Group’s S&P 500 ETF (VOO) has taken in more new money from investors this year than SGOV, according to ETFAction.com data. Vanguard’s Short Term Bond ETF (BSV) is not far behind, with over $4 billion in flows this year, placing within the top 20 among all ETFs in year-to-date flows.
“Long duration just doesn’t work right now” said Todd Sohn, senior ETF and technical strategist at Strategas Securities, on “ETF Edge.”
It would seem that Warren Buffett agrees, with Berkshire Hathaway doubling its ownership of T-bills and now owning 5% of all short-term Treasuries, according to a recent JPMorgan report.
Source: https://www.cnbc.com/2025/06/01/investors-big-short-treasury-bets-warren-buffett.html