Investors Extend Duration in Defined Maturity ETFs, IBDV Leads Inflows

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Weekly Channel Summary

The Specialty Fixed Income channel, comprising 157 ETFs from 13 issuers, ended the week with total assets of $73.01 billion. The category attracted $346 million in net inflows over the past five days, contributing to a strong year-to-date haul of $9.28 billion. Over the last twelve months, investors have added a substantial $21.60 billion to these specialized bond strategies.

This Week’s Performance Leaders and Laggards

Performance was mostly flat across the Specialty Fixed Income channel this week. Interest Rate Volatility funds edged out a minor gain, rising 0.18% to lead all categories. Conversely, Maturing Ladder ETFs were the weakest group, posting a slight decline of just 0.01%. Despite the weekly win, Interest Rate Volatility funds remain down 0.62% year-to-date.

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Specialty – Interest Rate Volatility 0.18% 1.46% 0.26% 0.77% -0.62% -4.26%
Specialty – Defined Maturity 0.11% 0.33% 0.18% 0.94% 1.03% 4.15%
Specialty – Maturing Ladder -0.01% -0.19% -0.46% 0.19% 0.42% 3.05%

Top & Bottom 5 ETFs by Weekly Performance

Among individual funds, the Simplify Bond Bull ETF (RFIX) was the standout performer, climbing 1.04% for the week. The KraneShares Quadratic Interest Rate Volatility and Inflation Hedge ETF (IVOL) also posted a positive return of 0.35%. At the other end of the spectrum, the Quadratic Deflation ETF (BNDD) was the worst performer, falling by 0.81%.

Ticker Fund Name WTD Performance
Top Performers
RFIX Simplify Bond Bull ETF 1.04%
IVOL KraneShares Quadratic Interest Rate Volatility and Inflation Hedge ETF 0.35%
IBIL iShares iBonds Oct 2035 Term TIPS ETF 0.28%
IBIK iShares iBonds Oct 2034 Term TIPS ETF 0.28%
IBHH iShares iBonds 2028 Term High Yield and Income ETF 0.26%
Bottom Performers
BNDD Quadratic Deflation ETF -0.81%
MUNA Northern Trust 2030 Tax-Exempt Distributing Ladder ETF -0.66%
BSMY Invesco BulletShares 2034 Municipal Bond ETF -0.63%
IBMX iShares iBonds Dec 2035 Term Muni Bond ETF -0.60%
IBMW iShares iBonds Dec 2034 Term Muni Bond ETF -0.56%

Analyzing the Weekly Flows

Investors added a net $346 million to the channel, with flows almost entirely concentrated in Defined Maturity strategies, which collected $347 million. Within this group, Corporate bond funds led with $195 million in new assets, followed by Government bond funds with $125 million. A clear trend emerged in duration positioning, as funds maturing in 2030 attracted the most capital ($124 million) while those maturing in 2026 saw the largest outflows (-$48 million).

Flows by Category

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Specialty – Defined Maturity 129 $71.98B $347M $1,284M $3,804M $9,303M $21,642M
Specialty – Maturing Ladder 20 $149M $1M -$4M $16M $27M -$164M
Specialty – Interest Rate Volatility 8 $877M -$1M -$13M $34M -$51M $119M

Flows by Segment

Segment Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Corporate 64 $55.01B $195M $809M $2,542M $6,432M $15,532M
Government 63 $12.87B $125M $376M $995M $2,060M $4,364M
Municipal 30 $5.12B $26M $82M $317M $787M $1,701M

Flows by Duration

Duration Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Duration: 2026 10 $12.10B -$48M -$351M -$876M -$1,527M -$267M
Duration: 2027 13 $13.23B $37M $124M $412M $1,201M $2,993M
Duration: 2028 14 $12.49B $72M $368M $1,061M $2,477M $4,512M
Duration: 2029 13 $10.24B $67M $313M $845M $1,838M $3,762M
Duration: 2030 17 $8.18B $124M $323M $786M $1,705M $3,596M
Duration: 2031 13 $5.53B $46M $303M $564M $1,171M $2,286M
Duration: 2032 11 $4.15B $23M $99M $338M $721M $1,594M
Duration: 2033 11 $2.85B $7M $18M $232M $484M $987M
Duration: 2034 10 $1.95B $4M $24M $157M $570M $1,108M
Duration: 2035 13 $1.07B $6M $37M $198M $548M $721M
Duration: 2036 5 $128M $7M $19M $82M $108M $108M
Duration: 2044 1 $102M $0M $2M $12M $18M $37M
Duration: 2045 3 $21M $0M -$1M $0M $0M $5M
Duration: 2046 1 $10M $1M $1M $6M $9M $9M
Duration: 2050 2 $8M $0M $0M $0M $0M $4M
Duration: 2054 1 $6M $0M $1M $2M $2M $4M
Duration: 2055 5 $24M $1M -$1M -$2M -$0M $5M
Duration: 2056 1 $4M $0M $0M $0M $2M $2M
Duration: 2060 2 $8M $0M $0M $2M $2M $5M
Duration: 2065 2 $7M $0M $0M $0M $0M $7M
Duration: Long 1 $1M $0M $0M $0M $0M $0M

Top & Bottom 5 ETFs by 5-Day Flow

The iShares iBonds Dec 2030 Term Corporate ETF (IBDV) was the week’s most popular fund, gathering $51 million in new assets. This preference for longer-dated maturities was also evident in strong flows into the iShares iBonds Dec 2030 Term Treasury ETF (IBTK). Conversely, investors rotated out of shorter-dated funds, with the Invesco BulletShares 2026 Corporate Bond ETF (BSCQ) and the iShares iBonds Dec 2026 Term Treasury ETF (IBTG) seeing the largest outflows of $18 million and $16 million, respectively.

Ticker Fund Name 5-Day Flow
Inflows
IBDV iShares iBonds Dec 2030 Term Corporate ETF $51M
IBTK iShares iBonds Dec 2030 Term Treasury ETF $42M
IBTI iShares iBonds Dec 2028 Term Treasury ETF $32M
BSCT Invesco BulletShares 2029 Corporate Bond ETF $31M
IBTH iShares iBonds Dec 2027 Term Treasury ETF $28M
Outflows
BSCQ Invesco BulletShares 2026 Corporate Bond ETF -$18M
IBTG iShares iBonds Dec 2026 Term Treasury ETF -$16M
IBDR iShares iBonds Dec 2026 Term Corporate ETF -$11M
BNDD Quadratic Deflation ETF -$8M
IBHF iShares iBonds 2026 Term High Yield and Income ETF -$7M

Issuer League Table Update

The issuer landscape remains dominated by iShares and Invesco, which command 58.16% and 38.68% of the channel’s assets, respectively. iShares led the week in asset gathering, attracting $236 million in net new money, while Invesco also saw healthy inflows of $96 million. KraneShares experienced the largest redemptions for the week, though the total was a modest $8 million.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iShares 57 $42.46B 58.16%
Invesco 35 $28.24B 38.68%
State Street 21 $955M 1.31%
Vanguard 10 $320M 0.44%
FolioBeyond 1 $292M 0.40%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
iShares $236M
Invesco $96M
Vanguard $12M
Outflows
KraneShares -$8M
Simplify -$2M
American Beacon $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.