Investors Buy Ultra-Short and 10-Year Treasury ETFs

Investors and financial advisers are allocating to both ultra-short and 10-year U.S. Treasury ETFs as yield levels, geopolitical tensions and potential Federal Reserve policy changes influence fixed-income decisions. The F/m US Treasury 3 Month Bill Fund (TBIL) reported a 30-day SEC yield of 3.54% as of June 30, 2026, and held about $7.2 billion in assets as of July 23, 2026. The BondBloxx Bloomberg Ten Year Target Duration US Treasury ETF (XTEN) reported a 30-day SEC yield of 4.64% as of June 30, 2026, and had just over $1 billion in assets as of July 24, 2026.

TBIL is structured to invest in three-month Treasury bills and distributes income monthly. The fund is used to manage short-term cash by locking in short-term yields and avoiding the variable-rate features common in many money market funds. Interest on Treasury securities is subject to federal tax and is typically exempt from state and local income taxes.

XTEN targets an average duration near ten years and holds longer-dated Treasury notes. That longer duration increases sensitivity to changes in interest rates compared with short-term bills and tends to offer higher nominal yields.

Advisers and investors are using short-duration Treasury ETFs for cash management and liquidity. Longer-duration Treasury ETFs are being used for higher income potential and to offset other portfolio exposures. The ETF structure allows investors to gain exposure to specific points on the yield curve without purchasing individual securities while providing daily liquidity and transparent pricing.

U.S. Treasury securities are backed by the federal government and carry low credit risk. ETFs that focus on Treasury maturities provide simplified access to defined durations for portfolio construction.