Convertible Bond ETFs Plunge While Taxable Funds Collect $7.6 Billion

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Weekly Channel Summary

The Taxable fixed income ETF channel, encompassing 711 funds from 147 issuers, holds approximately $2.32 trillion in total assets. This past week, the channel attracted $7.6 billion in net new assets, contributing to a year-to-date total of $317.7 billion. Over the last twelve months, investors have allocated a substantial $524.7 billion to taxable bond ETFs.

This Week’s Performance Leaders and Laggards

Performance was mostly muted across taxable bond categories, with Government Intermediate funds leading gains at 0.20%. The standout story was the Convertible category, which plummeted by -3.55% for the week, erasing a portion of its strong recent gains. Despite the sharp weekly drop, the Convertible category remains the top performer year-to-date with a 15.51% return.

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Taxable – Government Intermediate 0.20% 0.23% -0.80% 0.02% -0.13% 3.20%
Taxable – Government Short 0.14% 0.43% 0.12% 0.82% 0.79% 3.20%
Taxable – Bank Loans 0.14% 0.58% 1.26% 0.95% 1.34% 4.27%
Taxable – Short-Term 0.14% 0.38% 0.12% 0.89% 0.92% 3.87%
Taxable – Government Long 0.13% -0.96% -1.57% -1.05% -0.74% 3.84%
Taxable – Core 0.13% -0.04% -0.65% 0.14% 0.29% 4.26%
Taxable – Corporate 0.12% -0.17% -0.70% 0.06% 0.19% 4.51%
Taxable – Inflation Protected 0.12% 0.41% 0.05% 1.45% 1.51% 3.38%
Taxable – Core Enhanced 0.10% -0.05% -0.52% 0.29% 0.50% 4.71%
Taxable – Ultrashort 0.09% 0.37% 1.01% 1.90% 2.12% 4.49%
Taxable – Securitized 0.08% 0.02% -0.65% 0.38% 0.71% 5.66%
Taxable – Government Ultrashort 0.07% 0.33% 0.91% 1.79% 1.97% 3.89%
Municipal – Single State 0.06%
Taxable – Long-Term 0.05% -1.56% -1.54% -1.17% -0.42% 4.73%
Taxable – High Yield 0.02% 0.40% 0.51% 1.43% 2.00% 5.84%
Taxable – Multisector -0.02% 0.18% 0.37% 1.11% 1.47% 5.49%
Taxable – International -0.14% -0.83% -2.53% -1.20% -1.58% -0.28%
Taxable – International USD -0.31% -0.53% -0.10% 0.25% 0.68% 1.95%
Taxable – Preferred Stock -0.32% -0.94% -1.06% -0.68% 1.12% 4.47%
Taxable – Emerging USD -0.47% -0.43% 0.04% 1.84% 1.84% 9.54%
Taxable – Emerging -0.65% -0.33% -0.99% 0.92% 1.31% 7.14%
Taxable – Convertible -3.55% -7.33% 1.61% 9.83% 15.51% 23.32%

Top & Bottom 5 ETFs by Weekly Performance

At the individual fund level, the Sound Enhanced Fixed Income ETF (FXED) was the week’s top performer, rising 1.21%. In contrast, the week’s worst performers were concentrated in the convertible bond space, reflecting the broader category’s downturn. The Calamos Convertible Equity Alternative ETF (CVRT) fell by -4.60%, while the First Trust SSI Strategic Convertible Securities ETF (FCVT) declined by -4.51%.

Ticker Fund Name WTD Performance
Top Performers
FXED Sound Enhanced Fixed Income ETF 1.21%
PFFR InfraCap REIT Preferred ETF 0.83%
FLBL Franklin Senior Loan ETF Franklin Liberty Senior Loan Fund 0.53%
TFFI Chesapeake Trend-Following Fixed Income ETF 0.53%
MHY Man Active High Yield ETF 0.46%
Bottom Performers
CVRT Calamos Convertible Equity Alternative ETF -4.60%
MBSX Regan Fixed Rate MBS ETF -4.59%
FCVT First Trust SSI Strategic Convertible Securities ETF -4.51%
CWB State Street SPDR Bloomberg Convertible Securities ETF -3.56%
ICVT iShares Convertible Bond ETF -3.54%

Analyzing the Weekly Flows

Investors directed a net $7.6 billion into taxable bond ETFs over the week. Multi-Sector funds were the primary destination for new capital, attracting nearly $4.6 billion, followed by Government funds which gathered $2.4 billion. From a credit perspective, Investment Grade strategies dominated, pulling in $4.7 billion, while Intermediate duration funds saw the largest inflows of any maturity segment at almost $5.0 billion.

Flows by Segment

Segment Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Multi-Sector 299 $968.75B $4,597M $23,164M $69,084M $140,358M $241,620M
Government 130 $719.48B $2,392M $12,890M $38,082M $111,639M $172,928M
Bank Loans 48 $68.60B $249M $1,506M $6,921M $11,247M $15,355M
Corporate 158 $411.43B $183M $10,603M $26,634M $44,860M $78,388M
Securitized 46 $108.42B $182M $829M $4,046M $7,558M $12,733M
Preferred Stock 28 $41.14B $22M $631M $1,703M $1,976M $3,559M
Cat Bonds 1 $79M $1M $3M $12M $45M $70M

Flows by Credit Type

Credit Type Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Credit: Investment Grade 368 $1,852.58B $4,727M $35,807M $105,784M $252,955M $406,768M
Credit: Blend 187 $270.86B $2,656M $9,592M $27,228M $53,535M $91,547M
Credit: High Yield 151 $194.13B $221M $4,175M $13,319M $11,018M $26,056M
Specialty: Interest Rate Volatility 1 $88M $12M $32M $66M $68M $68M

Flows by Duration

Duration Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Duration: Intermediate 412 $1,333.43B $4,973M $31,203M $86,594M $171,272M $296,791M
Duration: Long 60 $193.68B $1,371M $4,699M $5,441M $4,009M $18,234M
Duration: Ultrashort 145 $487.61B $714M $9,340M $37,423M $105,642M $147,585M
Duration: Short 90 $302.93B $558M $4,364M $16,939M $36,653M $61,830M

Top & Bottom 5 ETFs by 5-Day Flow

The iShares 0-3 Month Treasury Bond ETF (SGOV) led all funds with $804 million in net inflows. On the other end of the spectrum, the ProShares GENIUS Money Market ETF (IQMM) experienced a substantial redemption of nearly $1.65 billion. The iShares 1-3 Year Treasury Bond ETF (SHY) saw the second-largest outflow at $287 million.

Ticker Fund Name 5-Day Flow
Inflows
SGOV iShares 0-3 Month Treasury Bond ETF $804M
BND Vanguard Total Bond Market ETF $720M
TLT iShares 20+ Year Treasury Bond ETF $613M
EMB iShares JP Morgan USD Emerging Markets Bond ETF $449M
VCIT Vanguard Intermediate-Term Corporate Bond ETF $442M
Outflows
IQMM ProShares GENIUS Money Market ETF -$1,649M
SHY iShares 1-3 Year Treasury Bond ETF -$287M
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF -$257M
HYG iShares iBoxx $ High Yield Corporate Bond ETF -$222M
SHV iShares Trust iShares 0-1 Year Treasury Bond ETF -$175M

Note: the following fund(s) were excluded from the flow totals above because the weekly flow exceeds 75% of the fund’s AUM and may be the result of a custom rebalance: AAAC ($93M).

Issuer League Table Update

iShares and Vanguard continue to command the taxable bond ETF market with 36.5% and 26.3% of assets, respectively. This week, Vanguard captured the most new money, bringing in nearly $3.0 billion in net inflows, with iShares following closely behind at $2.7 billion. ProShares recorded the largest net outflows of any issuer, shedding over $1.6 billion, driven by a single fund redemption.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iShares 88 $845.83B 36.49%
Vanguard 31 $608.59B 26.26%
SPDR 37 $173.34B 7.48%
JPMorgan 19 $93.16B 4.02%
Schwab 12 $77.98B 3.36%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
Vanguard $2,985M
iShares $2,686M
JPMorgan $582M
Outflows
ProShares -$1,644M
Columbia -$86M
Janus Henderson -$54M

For a deeper dive into these trends, access our FREE, in-depth Taxable ETF reports in the right side panel of this page.

Disclosures

This material is for informational purposes only and should not be considered investment advice. All investments, including ETFs, involve risk, including the possible loss of principal. Investors should consider their investment objectives, risks, charges, and expenses carefully before investing.

This analysis was developed by the team at ETF Action. We leverage advanced AI tools to assist in the drafting and refinement of our content, based on our expert prompts, direction, and final review.