Investors are increasingly turning to short-term bond ETFs, which have seen record inflows due to their higher yields compared to money market accounts, making them an attractive option for managing excess cash. These funds typically invest in debt securities with shorter maturities, offering both diversification benefits and lower duration risk.
Consider allocating excess cash into short-term bond ETFs, which are currently yielding higher than money market funds, bank savings accounts, and average CD rates. Notable options include the JPMorgan Ultra-Short Income ETF (JPST) with a 4.36% yield, the Fidelity Low Duration Bond Factor ETF (FLDR) at 4.54%, and the State Street SPDR Bloomberg Investment Grade Floating Rate ETF (FLRN) offering 4.69%. These ETFs can offer better returns and diversification with relatively lower duration risk, making them an attractive short-term investment for your portfolio.