Money market funds have accumulated $8 trillion in assets under management as cash allocations increasingly replace traditional bond holdings. The $BIL ETF has outperformed 87% of bond ETFs this year and 83% over the past five years, driving sustained inflows into short-term instruments.
Analysts indicate that capital is unlikely to rotate out of money market funds until interest rates fall below 3%. The current yield advantage of cash over duration exposure continues to attract investors seeking returns without interest rate risk.
Money Market Funds Reach $8 Trillion AUM as Cash Outperforms Bonds
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