Why Investors Are Eyeing Short & Long U.S. Treasury ETFs

Why Investors Are Eyeing Short & Long U.S. Treasury ETFs

Considering where bond yields sit, along with geopolitical pressures and potential policy from the Fed, there are plenty of ways for advisors and investors to play the fixed income market at the moment. This is certainly true for U.S. Treasury ETFs, as well.

Key Takeaways: Keeping current macroeconomic and yield conditions in mind, advisors and investors are flocking towards U.S. Treasury ETFs that target specific durations. However, interestingly enough, this includes both ultra-short funds that invest in T-Bills, along with funds that invest in ten-year T-Notes. The F/m US Treasury 3 Month Bill Fund (TBIL) and the BondBloxx Bloomberg Ten Year Target Duration US Treasury ETF (XTEN) are just two examples of U.S. Treasury ETFs with drastically different durations that are both seeing significant interest and strong performance. However, one of the more crucial challenges of investing in U.S. Treasuries is finding the right maturity duration to fit your portfolio’s needs. Fortunately, the ETF wrapper enables investors and advisors of all kinds to easily access specific maturities of Treasuries. And interestingly enough, ETFs on the relative opposite ends of the duration spectrum are seeing significant investor attention.

Time For T-Bills? For folks that are looking for a means to manage their cash in the short-term, Treasury Bills could help. Not only do T-Bills provide tax advantages, but they lock in yields and avoid the variable rate risks that come from traditional money market funds. F/m Investments offers the F/m US Treasury 3 Month Bill Fund (TBIL), which can help investors and advisors easily gain access to T-Bills. The fund is built to provide focused exposure to the US 3-Month Treasury Bill, which gives TBIL the advantage of specific duration exposure. Furthermore, TBIL does aim to provide dividend payments on a monthly basis. This helps the fund operate as a valuable cash alternative. ‘ TBIL’s latest progress report has showcased how the fund provides compelling income opportunities. As of June 30, 2026, the fund has a 30-day SEC yield of 3.54%. The fund has about $7.2 billion in assets under management, as of July 23, 2026.

The 10-Year T-Note Opportunity Set Now, some may be looking to invest in U.S. Treasuries that offer a bit of a longer duration. Treasury Notes, also known as T-Notes, could help provide income and operate as a portfolio ballast. For those seeking exposure to T-Notes, BondBloxx offers the BondBloxx Bloomberg Ten Year Target Duration US Treasury ETF (XTEN). True to its name, XTEN invests in U.S. Treasuries that have an average duration of ten years. Much like TBIL, XTEN is also reporting strong yield and assets under management. As of June 30, 2026, the fund has a 30-day SEC yield of 4.64%. Meanwhile, XTEN has a little over $1 billion in AUM, as of July 24, 2026. TBIL and XTEN both seeing strong track records shows the merits of holding different durations in U.S. Treasuries. Not only does each duration have its own distinct use case, but the flexible nature of the ETF wrapper makes it easy to gain focused exposure to each end of the spectrum.