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Overall, ETFs pulled out $6.2 billion in capital in the week ended Feb 24. U.S. equity led the way higher with $6.2 billion in outflows, closely followed by $643.9 million in international fixed-income ETFs, per etf.com. On the other hand, U.S. fixed-income ETFs and international ETFs saw inflows of $4 billion and $224.7 million, respectively.

As such, iShares Short Treasury Bond ETF (SHV - Free Report), SPDR Bloomberg 1-3 Month T-Bill ETF (BIL - Free Report), iShares 0-3 Month Treasury Bond ETF (SGOV - Free Report), SPDR Portfolio Short Term Treasury ETF (SPTS - Free Report) and Vanguard Total Bond Market ETF (BND - Free Report) dominated the top creation list last week.

Short-dated U.S. bond ETFs gained investors’ love last week as Treasury yields continued their climb for the fourth consecutive week on more interest rate hikes from the Federal Reserve. The short-term two-year Treasury yield jumped to the highest level since 2007, while the 10-year yield rose seven basis points to 3.95%.

Meanwhile, the major indices logged in the biggest losses of 2023 last week. The S&P 500 and the tech-heavy Nasdaq Composite Index posted their third straight week of declines, falling 3.3% each. The Dow Jones fell 3% last week, logging in the fourth consecutive week of decline and turning red from a year-to-date look. This marks the longest losing streak in 10 months.

Hot economic data have rekindled worries about a longer-than-expected Fed rate hike. U.S. consumer spending increased the most in nearly two years in January amid a surge in wage gains, while inflation accelerated. Additionally, the Federal Reserve’s preferred inflation gauge accelerated in January at its fastest pace since June, an alarming sign that price pressures remain entrenched in the U.S. economy and could lead the Fed to keep raising interest rates well into this year.

We have given details of the ETFs below:

iShares Short Treasury Bond ETF (SHV)

iShares Short Treasury Bond ETF topped asset flow creation last week, gathering about $3 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 30 securities in its basket, with an average maturity of 0.31 years and an effective duration of 0.29 years.

iShares Short Treasury Bond ETF has amassed $23.3 billion in its asset base while trading in a solid volume of 3.4 million shares a day. It charges 15 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.

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

SPDR Bloomberg 1-3 Month T-Bill ETF saw an inflow of $1.8 billion last week. It seeks to provide exposure to zero-coupon U.S. Treasury securities with a remaining maturity of 1-3 months. It follows the Bloomberg 1-3 Month U.S. Treasury Bill Index, holding 19 securities in its basket. Both average maturity and adjusted duration are at 0.09 years each.

SPDR Bloomberg 1-3 Month T-Bill ETF has AUM of $26.1 billion and an average daily volume of 6.6 million shares. It charges 13 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk outlook.

iShares 0-3 Month Treasury Bond ETF (SGOV)

iShares 0-3 Month Treasury Bond ETF accumulated around $1.2 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 0.09 years.

iShares 0-3 Month Treasury Bond ETF has AUM of $7.7 billion and trades in an average daily volume of 2.2 million shares. SGOV charges 5 bps in annual fees and has a Zacks ETF Rank #3.

SPDR Portfolio Short Term Treasury ETF (SPTS)

SPDR Portfolio Short Term Treasury ETF gathered $870 million in capital, propelling AUM to $5.5 billion. It offers exposure to U.S. Treasuries with a remaining maturity between 1 and 3 years and follows the Bloomberg 1-3 Year U.S. Treasury Index. SPDR Portfolio Short Term Treasury ETF holds 102 securities in its basket with an average maturity of 1.90 years and an adjusted duration of 1.81 years.

SPDR Portfolio Short Term Treasury ETF charges 6 bps in annual fees and trades in an average daily volume of 3 million shares.

Vanguard Total Bond Market ETF (BND)

Vanguard Total Bond Market ETF gathered $850 million in its asset base last week. It targets the broad U.S. investment grade bond market by tracking the Bloomberg Barclays U.S. Aggregate Float Adjusted Index. The product holds 10,164 securities in its basket with an average maturity and effective duration of 8.9 years and 6.6 years, respectively.

Vanguard Total Bond Market ETF is the largest bond ETF with AUM of $87.8 billion and an average daily volume of 5.7 million shares. It charges 3 bps in annual fees.

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