VettaFi ETF Trends writes that, "More Money Market Substitutes Taking Shape." They tell us, "​Investors have been married to their money market funds for the better part of the last two years. But a recent poll from VettaFi'​s Q4 Fixed Income Symposium in October showed more market participants may finally be willing to break out of their comfort zones and redeploy those funds into riskier assets. 76% of advisors said they were looking to cut back their allocation to money market funds in the next 12 months. This is a move that has arguably been long overdue." The piece comments, "Plenty of cash will likely remain in money market funds even after some reallocation. Short duration products still offer attractive real positive yields, so the cost of staying short is not particularly high. Even if investors start to funnel more cash into other financial assets, it may take a while to make a significant dent in the record $​6 trillion of cash still parked on the sidelines. Meanwhile, short Treasury bond ETFs, floating-​rate instruments and ultra-​short term structured products can all offer attractive money market fund-​like alternatives." VettaFi adds, "But lately, many ultra-​short duration products have begun to mimic money market funds on both a risk and return basis. The iShares 0-​3 Month Treasury ETF (​SGOV) and JPMorgan Ultra-​Short Income ETF (​JPST) continue to dominate the flow charts this year -- with north of $​9 billion and $​4 billion in net inflows each. Meanwhile, the $​34 billion SPDR Bloomberg 1-​3 Month T-​Bill ETF (​BIL) remains the largest and most liquid of its kind.... PGIM offers a suite of ultra-​short duration bond funds that have all amassed inflows last month – including the PGIM Ultra Short Bond ETF (​PULS)."

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