Defined Maturity ETFs Attract Capital as Investors Move Out the Curve

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Weekly Channel Summary

The Specialty Fixed Income channel encompasses 165 ETFs from 13 issuers, with total assets under management standing at $74.26 billion. Investors added a net $296 million to the space over the past week, contributing to a year-to-date inflow of $11.03 billion. Over the last twelve months, the channel has accumulated a total of $20.54 billion in net new assets.

This Week’s Performance Leaders and Laggards

Performance was mixed across the Specialty Fixed Income landscape this week, with Interest Rate Volatility being the only category to post a gain, rising 0.40%. On the other hand, Maturing Ladder ETFs were the weakest performers with a weekly decline of -0.24%. Despite a slight dip this week, the large Defined Maturity category maintains the strongest one-year return profile, having gained 2.51% over the past twelve months.

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Specialty – Interest Rate Volatility 0.40% -0.63% 1.87% 3.82% 1.37% -1.93%
Specialty – Defined Maturity -0.08% -0.04% 0.27% 0.34% 1.07% 2.51%
Specialty – Maturing Ladder -0.24% -0.19% -0.84% -1.24% -0.05% 0.93%

Top & Bottom 5 ETFs by Weekly Performance

Among individual funds, the Simplify Interest Rate Hedge ETF (PFIX) delivered the strongest return, climbing 1.33% for the week. Conversely, longer-dated municipal bond funds faced headwinds. The Invesco BulletShares 2035 Municipal Bond ETF (BSMZ) was the worst performer, falling -1.23%, followed closely by the Invesco BulletShares 2034 Municipal Bond ETF (BSMY) with a -1.13% loss.

Ticker Fund Name WTD Performance
Top Performers
PFIX Simplify Interest Rate Hedge ETF 1.33%
MYMG State Street My2027 Municipal Bond ETF 0.82%
RFIX Simplify Bond Bull ETF 0.71%
RINF ProShares Inflation Expectations ETF 0.60%
MYMH State Street My2028 Municipal Bond ETF 0.38%
Bottom Performers
BSMZ Invesco BulletShares 2035 Municipal Bond ETF -1.23%
BSMY Invesco BulletShares 2034 Municipal Bond ETF -1.13%
IBMW iShares iBonds Dec 2034 Term Muni Bond ETF -1.05%
IBMX iShares iBonds Dec 2035 Term Muni Bond ETF -1.04%
BSSX Invesco BulletShares 2033 Municipal Bond ETF -0.95%

Analyzing the Weekly Flows

The channel recorded net inflows of $296 million, driven almost entirely by the Defined Maturity category which attracted $301 million. This inflow was slightly offset by a minor $5 million withdrawal from Interest Rate Volatility funds. A notable trend emerged in maturity targeting, as funds maturing in 2026 saw the largest outflows of any duration at -$179 million, while investors allocated the most new capital to 2028 maturity funds, which gathered $117 million.

Flows by Category

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Specialty – Defined Maturity 129 $73.22B $301M $1,161M $3,456M $11,082M $20,562M
Specialty – Maturing Ladder 28 $178M $0M -$6M -$11M $21M -$62M
Specialty – Interest Rate Volatility 8 $862M -$5M $14M -$17M -$68M $41M

Flows by Segment

Segment Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Government 67 $13.45B $205M $553M $1,186M $2,759M $4,670M
Corporate 64 $55.52B $78M $497M $1,958M $7,320M $14,208M
Municipal 34 $5.28B $13M $119M $284M $956M $1,663M

Flows by Duration

Duration Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Duration: 2026 10 $11.18B -$179M -$718M -$1,456M -$2,500M -$1,436M
Duration: 2027 13 $13.57B $88M $293M $555M $1,607M $2,813M
Duration: 2028 14 $13.01B $117M $371M $1,120M $3,088M $4,664M
Duration: 2029 13 $10.41B $21M $70M $645M $2,051M $3,574M
Duration: 2030 17 $8.49B $62M $272M $843M $2,111M $3,630M
Duration: 2031 15 $5.79B $46M $235M $674M $1,508M $2,287M
Duration: 2032 11 $4.30B $52M $159M $383M $942M $1,662M
Duration: 2033 11 $2.96B $47M $148M $178M $646M $1,027M
Duration: 2034 10 $2.02B $30M $84M $133M $674M $1,092M
Duration: 2035 13 $1.19B $13M $124M $195M $692M $867M
Duration: 2036 7 $215M $4M $61M $114M $191M $191M
Duration: 2044 1 $105M $0M $4M $12M $24M $38M
Duration: 2045 3 $23M $0M $3M $2M $3M $7M
Duration: 2046 3 $42M $0M $21M $22M $29M $29M
Duration: 2050 2 $8M $0M $0M $0M $0M $4M
Duration: 2054 1 $6M $0M $0M $2M $2M $4M
Duration: 2055 5 $20M $0M -$4M -$9M -$4M $1M
Duration: 2056 3 $52M $0M $37M $37M $40M $40M
Duration: 2060 2 $4M $0M -$4M -$3M -$2M $1M
Duration: 2065 2 $5M $0M -$2M -$2M -$2M $5M
Duration: Long 1 $1M $0M $0M $0M $0M $0M

Top & Bottom 5 ETFs by 5-Day Flow

The iShares iBonds Dec 2027 Term Treasury ETF (IBTH) led all funds in asset gathering, pulling in $40 million for the week. Outflows were concentrated in funds with near-term maturities, particularly within the corporate bond segment. The Invesco BulletShares 2026 Corporate Bond ETF (BSCQ) experienced the largest redemption, shedding $94 million, while the iShares iBonds Dec 2026 Term Corporate ETF (IBDR) saw the second-largest outflow at $36 million.

Ticker Fund Name 5-Day Flow
Inflows
IBTH iShares iBonds Dec 2027 Term Treasury ETF $40M
BSCU Invesco BulletShares 2030 Corporate Bond ETF $37M
BSCW Invesco BulletShares 2032 Corporate Bond ETF $36M
IBDT iShares iBonds Dec 2028 Term Corporate ETF $31M
IBTO iShares iBonds Dec 2033 Term Treasury ETF $27M
Outflows
BSCQ Invesco BulletShares 2026 Corporate Bond ETF -$94M
IBDR iShares iBonds Dec 2026 Term Corporate ETF -$36M
BSCT Invesco BulletShares 2029 Corporate Bond ETF -$19M
IBHF iShares iBonds 2026 Term High Yield and Income ETF -$18M
IBTG iShares iBonds Dec 2026 Term Treasury ETF -$15M

Issuer League Table Update

The issuer landscape remains highly concentrated, with iShares and Invesco dominating the channel with 58.20% and 38.25% market share, respectively. iShares also led the week in asset gathering, securing $259 million in net inflows. On the other side of the ledger, Quadratic recorded the largest net outflow among issuers, with investors pulling $13 million from its funds.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iShares 57 $43.21B 58.20%
Invesco 35 $28.40B 38.25%
State Street 21 $1.17B 1.58%
Vanguard 10 $420M 0.57%
FolioBeyond 1 $331M 0.45%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
iShares $259M
State Street $16M
Invesco $14M
Outflows
Quadratic -$13M
Simplify -$4M
KraneShares -$0M

For a deeper dive into these trends, access our FREE, in-depth FI: Specialty 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.