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T-bills solved the volatility scare of March 2026, but the VIX has since collapsed back to calm, and the real danger for cash holders has quietly shifted. There is a middle path between sitting out and going all in, and most nervous investors have never heard of it.
Interest rates seem likely to stay constant or go up.
Artificial intelligence, cryptocurrency and private markets have dominated ETF headlines this year, but one of the industry's fiercest battles is unfolding in a far less glamorous corner of the market: cash.
The Schwab US Dividend Equity ETF (SCHD) has moved sideways in the past few days. It has remained inside the key support and resistance levels of $31.60 and $32.90 since May.
The Nikkei 225 Index traded sideways on July 8 as artificial intelligence (AI) stocks rebounded after Tuesday's sharp sell-off. The index was trading at 39,770, about 7% below its highest level this year.
If you have cash sitting in a brokerage account earning nothing, the iShares 0-3 Month Treasury Bond ETF (NYSEARCA:SGOV) and the SPDR Bloomberg 1-3 Month T-Bill ETF (NYSEARCA:BIL) both look like the obvious fix.
While the Federal Reserve left interest rates unchanged at the latest meeting, investors increasingly speculate that rate hikes are on the table in 2026.
Bond ETF inflows are running 60% ahead of last year's level, which was itself a record pace, a rise that a BlackRock executive described as "shocking" to CNBC. Elevated stock market volatility, a new Fed chair, and ongoing inflation fears are all part of the picture as investors in the market hunt for maximum "real yield.