Following the banking crisis spurred by the sudden collapse of Silicon Valley Bank and Signature Bank, Pierce said that she has seen “unbelievable flows” going into money market funds, which “would suggest that this is not entirely over. She added that, in addition to money market funds, BNY Mellon IM has “seen unbelievable money in motion in the short end of the curve” going towards ultra-short bond ETFs. “We’ve equally seen people looking for alternatives in the ETF space, particularly with ultra-short ETFs,” Pierce said. Shortly after, Balchunas asked Rosenbluth to walk us through the lay of the land of ultra-short funds. Rosenbluth explained that the ultra-short category has become “really popular” with financial advisors. VettaFi recently asked advisors where they saw the greatest opportunity over the next 12 months within fixed income, and ultra-short was the category they chose. “You’ve got a wide range of options,” Rosenbluth said, citing actively managed products like the JPMorgan Ultra-Short Income ETF (JPST A), floating rate products like the WisdomTree Floating Rate Treasury Fund (USFR B-), and ultra-short treasury bill ETFs like the SPDR Bloomberg 1-3 Month T-Bill ETF (BIL B+). “So, you want to make sure you understand the interest rate risk that you’re taking on, you want to make sure you understand whether this is actively managed and thus it might shift from one to another within the overall fixed income category,” Rosenbluth added.