According to Bank of America, US money market funds took in over $166 billion in the week ending October 7, 2026, their largest inflows since April 2020, and total assets have topped $8 trillion. Low risk and attractive short-term rates, along with expectations that the Fed will raise rates several times, have led investors to favor the shortest end of the yield curve and stay cautious on longer-duration bonds. The article notes that as rates rise, bond prices fall unless bonds are held to maturity, while cash and ultra-short-term bonds show virtually zero correlation with equities. Money market ETFs generally have lower expense ratios than mutual funds and typically launch with a NAV around $100, unlike the $1 per share NAV of most traditional money market mutual funds.
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