## [# F/m Investment’s Morris Makes the Case for Treasuries & Bonds](/sections/conferences/fm-investments-morris-makes-case-treasuries-bonds)
# F/m Investment’s Morris Makes the Case for Treasuries & Bonds
F/m Investment’s CEO Alexander Morris shares thoughts on Treasury yields and the macro environment before digging into the three of the firm’s funds, including the innovative [**F/m Compoundr U.S. Aggregate Bond ETF (CPAG)**](https://www.etf.com/CPAG) that reinvests dividends instead of distributing them.
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[By ETF.com Staff](/contributors/etfcom-staff)
Apr 15, 2026
Edited by: ETF.com Staff
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Alexander Morris, CEO of F/m Investments, caught up with Sumit Roy, Senior ETF Analyst at ETF.com, to talk Treasuries, yields, and the macro environment at Future Proof Citywide in March. They also discussed three of the firm’s funds, the [**F/m US Treasury 3 Month Bill ETF (TBIL)**](https://www.etf.com/TBIL), the [**F/m Ultrashort Treasury Inflation-Protected Security (TIPS) ETF (RBIL)**](https://www.etf.com/RBIL), and the [**F/m Compoundr U.S. Aggregate Bond ETF (CPAG)**](https://www.etf.com/CPAG).
## Inflation, The Fed, and Treasury Yields
**Roy:** Alex, it's such a pleasure to run into you, always great seeing you.
**Morris:** Good seeing you.
**Roy:** Alex, we got to talk about the Treasury markets. Things have been very volatile, to say the least. On the macro front, we're seeing geopolitical headlines. We're seeing inflation kind of still sticky to the upside. But the job market's like been weakening.
**Morris:** Yeah.
**Roy:** It's just a very troublesome situation if you're the Fed. So what do we make of this market right now when it comes to yields? The 10 year has been kind of range bound 4% up to 4.2%. What do you make of the Treasury markets right now?
**Morris:** I mean this is a great question. What's a central banker to do? Inflation is sticky and it's getting stickier. And if you were worried about inflation at all a couple of weeks ago, you're absolutely terrified today. And we're seeing a lot of that action, particularly in RBIL where we saw a lot of flows as folks are buying that sort of inflation insurance protection.
The 10-year is an interesting spot, because if we look at what happened last year in the 90-day product versus the 10-year product, you made two times your money in the 10-year.
It was a bumpier ride, admittedly, because you had much more volatility and much more duration. You'd expect that. But yields are generally still pretty strong. It looks like the government's going to print more, so yields should stabilize or go up. And the Central Bank, because of that jobs picture, wants to cut now. It sees it coming.
If we look from Liberation Day right in April of last year, the thing that was supposed to rehome thousands, hundreds of thousands of American jobs to today, the economy is down 20,000 jobs. Now, so for all the numbers you're seeing, the reality is not much has happened. 20,000 is not a great number. It's not 200,000.
As a result, the Central Bank that now wants to cut definitely has an incoming chair who very much wants to cut—maybe to zero—can't do very much. So I think we're going to see the Fed sit on its hands for a while. But from an investor standpoint, if you're worried, shortening the curve is great, inflation insurance1 through [**RBIL**](https://www.etf.com/RBIL) and [**TBIL**](https://www.etf.com/TBIL)— RBIL through inflation-backed, TBIL for short end—is great.
But just because geopolitics are neutering things a bit doesn't mean that your portfolio should be neutered. Don't be afraid to take on a little bit of duration, because two years out you're going to get a slightly better return, and you're probably going to like that because 3% feels great, 4% is going to feel a lot greater.
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## The Value of Duration
**Roy:** Right, you can't just sit in T-bills and just hang out there like you could back in 2022, 2023. Because there is that possibility that the Fed cuts, those rates move down, right?
**Morris:** Yeah. I mean, you could hang out. You're gonna be just fine. You're still making a pretty healthy returns. I wouldn't say it's time to go. And just, if you're there and you've got excess capital coming out of equities because you think equities are expensive—probably are—laddering some of that further on duration, you're gonna feel a lot better. In case something moves, you're going to get the impact.
**Roy:** And TBIL is your biggest fund?
**Morris:** TBIL is the largest fund. Which, TBIL has been one of those things that it just does what it says on the tin. It seems to grow. People love it. Use it as a money market alternative, use it as a strategic cash allocation. Spreads are super tight. You can come and go. As I said, it does what it says on the tin.
It's the on-the-run 90-day. Last year we returned to you more than the expense ratio through our roll strategy, having it go from week to week—which we can do opportunistically—as well as securities lending revenue that we share all of it back with the fund. So you owned it basically for free.
**Roy:** And this is a trend we're seeing, right? We have 7 trillion in money market funds but increasingly investors are using ETFs like TBIL as an alternative.
**Morris:** They should you, you get a better return profile, you get more intraday liquidity where you know exactly what you're going to get. Sure, it's not pegged to the dollar, but if you look at the $28 trillion, that sits today in money market funds, bank accounts, other short-term instruments of that nature that are not Treasuries. There's a lot of cash sitting on the sidelines that is under-optimized. And if you think inflation is going to come, RBIL is your savior.
You don't want duration that you see in some of these other shorter duration funds that are often two, three, four years of duration. But when inflation comes, it takes 2 to 3% away from you every year. That's a negative return for keeping cash in your bank account. This is your best way to insure against it.
**Roy:** Yeah, I do think RBIL is kind of a hidden gem. You don't have that duration risk, yet you still have that inflation protection.
**Morris:** That was exactly why it was built. The folks who came together and built it with us are folks who've done this forever. And Mark Spindel, who’s been running it with us, built this having traded inflation for a long, long time. Understanding most folks don't understand what inflation is anyway, and they certainly don't know how to protect against it. And all of the, doing all the right things seems to often hurt you in the long run.
What if we just fix that? And RBIL did it. That said, we’re in the short term TIPS market, which is a really great market to be in. Super liquid, a lot of big funds sell their TIPS super cheap. They've got 13 months to go, so we're happy to buy them in. And then when they are a month to go, they trade like money markets at a premium so we can sell them rich. So we've got this great structural advantage coming into it and you get a great potential outcome.
## Broader Bond Investing With a Twist
**Roy:** That's great. And another one of your ETFs that I want to talk about super compelling products. [**CPAG**](https://www.etf.com/CPAG) is the ticker there. This is a more, potentially more tax efficient broad market bond ETF. Can you talk a little bit about it?
**Morris:** Sure. So like many good ideas, what we see today wasn't the exact reason why we did it. We built it for operational efficiency. We have a lot of folks who reinvest dividends and institutional players who kept asking us, “Why are you giving us our money back? Can't you just keep it?” So we tried to build a product to reinvest dividends for total return, because that's what many of our clients wanted.
Then found out there's this interesting other audience who says, “We don't want the dividends from a tax standpoint.” So how can we put all together? You get a total return experience, you don't get the taxable dividends along the way, and you get to decide the liquidity and character when you want to send.
**Roy:** And obviously, this kind of changes the game when it comes to asset allocation. People think put bonds in retirement accounts, put stocks in the taxable accounts. This kind of changes all that right?
**Morris:** I mean common wisdom was, if I'm going to get income I want to get it out of the taxable realm, which it was ultimately to be taxable later. So it was just a deferral game. But that was the common wisdom, and now you can free yourself from that. Because many of those programs have a limited menu of solutions. You can get their high trade costs. Transactions can be difficult.
You don't get the same tool set. And now you're thinking to yourself, “Okay, I gotta strap in for the morning and work out what's going to go where. How do I move money or I want this allocation, I can't quite get it. What do I do?” This eliminates all of that. And you'll see us do this in more products where folks either don't want the dividends as a result, or we can be more efficient in avoiding them because some of them have pretty high dislocations to NAV, but don't always work out in their favor.
And sometimes it's best to get out of the way, let the market sort out whatever that was supposed to do, particularly in much higher yielding bonds—REITs, BDCs, things that have little different liquidity profile and behave differently, and we'll give you the opportunity to set and forget it. And when you're ready to sell, sell. Don't worry about anything else along the way.
**Roy:** Fantastic. Alex, a ton of great information. Thanks so much for your time.
**Morris:** Thank you.
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**DISCLOSURES**
1\. Insurance Protection: Financial coverage that helps pay for losses, damage, or unexpected events in exchange for a premium, reducing your financial risk.
2\. Money Market and bank accounts are guaranteed through the FDIC and ETFs are not
**Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call 1-800-617-0004. Read the prospectus or summary prospectus carefully before investing.**
Investments involve risk. Principal loss is possible. As with all ETFs, Shares may be bought and sold in the secondary market at market prices. Interest rate risk is the risk of losses attributable to changes in interest rates.
In general, if prevailing interest rates rise, the values of debt instruments tend to fall, and if interest rates fall, the values of debt instruments tend to rise.
TBIL Fund Risks: The UST 3 Month Bill Fund may be susceptible to an increased risk of loss, including losses due to adverse events that affect the UST 3 Month Bill Fund’s investments more than the market as a whole, to the extent that the UST 3 Month Bill Fund’s investments are concentrated in a particular issue, issuer or issuers, country, market segment, or asset class. While U.S. Treasury obligations are backed by the “full faith and credit” of the U.S. Government, such securities are nonetheless subject to credit risk (i.e., the risk that the U.S. Government may be, or be perceived to be, unable or unwilling to honor its financial obligations, such as making payments).
RBIL Fund Risks: The Bloomberg US Ultrashort TIPS 1-13 Months Index is composed of equally weighted sub-components that have a remaining maturity from one (1) month up to (but not including) thirteen (13) months (e.g., 1-2 month maturities, 2-3 maturities, etc.). Federal Reserve holdings of TIPS are excluded from the face amount outstanding of each bond in the Underlying Index.
The F/m Funds are distributed by Quasar Distributors, LLC, which is not related to the issuer or financial advisor.
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