Investors have moved capital into short-term US Treasury ETFs while reducing exposure to long-term bonds, following JP Morgan CEO Jamie Dimon's negative assessment of long-term Treasuries expressed in a July 21 interview. The iShares 0-3 Month US Treasury ETF SGOV attracted $47.5 billion in net inflows this year, the highest among all bond ETFs, according to CNBC reported on July 21. Dimon stated he would not purchase long-term US Treasuries, citing that 10-year Treasury yields at 4.0-4.5% would be appropriate levels, while current 10-year yields stand around 4.6%. The shift reflects investor concerns over market volatility and government fiscal deficit expansion pressures on long-term bond prices.
SGOV ETF Records $47.5 Billion Net Inflows in 2026
The iShares 0-3 Month US Treasury ETF SGOV received $47.5 billion in net inflows this year, making it the bond ETF with the largest capital attraction, CNBC reported on July 21. SGOV's assets under management approached $100 billion, positioning it as the third-largest bond ETF after Vanguard Total Bond Market ETF BND and iShares Core US Aggregate Bond ETF AGG.
Over the past year, the preference for short-term bonds remained evident in ETF fund flows. SGOV and BND were the only bond ETFs to appear in the top 10 ETF inflows list. SGOV attracted approximately $50 billion in net inflows, ranking fifth among all ETFs. In June, SGOV maintained its position at fifth place in fund inflow rankings.
Equity ETFs Capture Half of $1 Trillion H1 Inflows
Investors continued to allocate capital to equity ETFs. The US ETF market exceeded $1 trillion in net inflows during the first half of the year, with nearly half flowing into equity ETFs. This indicates investors maintained stock exposure while adopting shorter maturity strategies in bond investments.
Jamie Dimon States 10-Year Treasury Yields Should Be 4.0-4.5%
Jamie Dimon stated in a July 20 interview that he would not purchase long-term US Treasuries. He assessed current stock market valuations as excessively high. Dimon said "10-year US Treasury yields at 4.0-4.5% levels would be appropriate," indicating limited upside potential for long-term bond prices.
Current US 10-year Treasury yields stand around 4.6%. This year, the market shifted its focus from expectations of Federal Reserve rate cuts to reflecting possibilities of additional rate increases, driving long-term Treasury yields higher. Since bond prices move inversely to yields, rising yields create downward pressure on long-term bond prices.
Fiscal Deficit Concerns Drive Long-Term Treasury Yields Higher
CNBC reported that concerns over government spending expansion and fiscal deficits are cited as factors pushing long-term Treasury yields higher.
CNBC explained that "holding short-term Treasuries as a strategy to prepare for market volatility is not a new concept."
Warren Buffett Recommended 90-10 Asset Allocation in 2013
Warren Buffett disclosed in his 2013 Berkshire Hathaway shareholder letter that his post-death asset management plan directs 90% of his spouse's assets to an S&P 500 index fund and the remaining 10% to short-term US Treasuries. Buffett explained this could serve as an appropriate asset allocation strategy for most long-term investors.
FAQ
Q: What amount of capital flowed into SGOV ETF this year?
A: The iShares 0-3 Month US Treasury ETF SGOV received $47.5 billion in net inflows this year, the highest among all bond ETFs according to CNBC reported on July 21.
Q: What did Jamie Dimon say about 10-year Treasury yields on July 20?
A: Jamie Dimon stated in a July 20 interview that he would not purchase long-term US Treasuries, saying "10-year US Treasury yields at 4.0-4.5% levels would be appropriate," while current yields stand around 4.6%.
Q: How much capital flowed into US equity ETFs in the first half of 2026?
A: The US ETF market exceeded $1 trillion in net inflows during the first half of the year, with nearly half of that amount flowing into equity ETFs.
