Taxable Bond ETFs See Massive $10.25B Inflows as Preferreds Lead the Charge

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Weekly Channel Summary

The FI: Taxable channel continues to demonstrate massive scale, currently commanding $2,125.2B in total Assets Under Management (AUM) across 669 distinct ETFs from 138 issuers. Over the past week, the space saw robust demand, attracting $10.25B in net new inflows. This strong 5-day flow activity builds on a powerful long-term trend, pushing Year-to-Date (YTD) net flows to $80.84B and an impressive $404.88B accumulated over the trailing one-year period.

This Week’s Performance Leaders and Laggards

Preferred Stock and Convertible ETFs set the pace this week, returning 0.29% and 0.28% respectively, positioning them among the strongest categories Year-to-Date as well. Conversely, International and Government Long categories were the primary laggards for the week, returning -0.38% and -0.28%, though Government Long remains solidly in positive territory (+2.38%) on a YTD basis.

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Preferred Stock 0.29% 1.06% 3.84% 3.92% 1.97% 7.07%
Convertible 0.28% 1.36% 8.98% 9.99% 5.58% 26.61%
International USD 0.19% 1.15% 1.23% 2.24% 1.18% 4.61%
High Yield 0.16% 0.54% 2.40% 3.69% 0.97% 7.53%
Ultrashort 0.06% 0.38% 1.26% 2.47% 0.65% 5.04%
Government Ultrashort 0.05% 0.32% 0.99% 2.00% 0.50% 4.14%
Emerging USD 0.04% 2.14% 3.01% 6.56% 1.90% 12.56%
Corporate 0.00% 1.41% 1.78% 3.58% 1.21% 7.84%
Multisector Taxable -0.01% 1.11% 2.18% 3.72% 1.28% 6.98%
Short-Term -0.01% 0.71% 1.40% 2.76% 0.77% 6.23%
Emerging -0.02% 1.70% 3.72% 6.41% 2.12% 13.35%
Core Enhanced -0.04% 1.45% 1.85% 4.05% 1.36% 7.70%
Core -0.05% 1.48% 1.66% 3.78% 1.26% 7.40%
Long-Term -0.05% 2.49% 2.23% 4.97% 2.07% 8.41%
Government Short -0.05% 0.64% 1.02% 2.33% 0.57% 5.38%
Securitized -0.06% 1.26% 2.05% 4.26% 1.37% 8.07%
Inflation Protected -0.09% 1.08% 0.97% 2.26% 0.98% 5.79%
Government Intermediate -0.15% 1.44% 1.16% 3.10% 1.01% 7.34%
Bank Loans -0.23% -0.93% 0.56% 1.12% -0.44% 3.75%
Government Long -0.28% 3.31% 1.24% 4.97% 2.38% 6.39%
International -0.38% 1.81% 3.64% 3.14% 1.85% 11.56%

Top & Bottom 5 ETFs by Weekly Performance

Drilling down to individual funds, the Calamos Convertible Equity Alternative ETF (CVRT) claimed the top spot this week, edging out its peers with a solid 0.86% return. On the other end of the spectrum, the Virtus Private Credit Strategy ETF (VPC) faced significant headwinds, dropping -3.04%, followed by the Digital Asset Debt Strategy ETF (DADS), which lost -0.76%.

Top Performers
Ticker Fund Name WTD Performance
CVRT Calamos Convertible Equity Alternative ETF 0.86%
PFFR InfraCap REIT Preferred ETF 0.57%
PGX Invesco Preferred ETF 0.55%
PGF Invesco Financial Preferred ETF 0.54%
PFFA Virtus InfraCap U.S. Preferred Stock ETF 0.51%
Bottom Performers
Ticker Fund Name WTD Performance
VPC Virtus Private Credit Strategy ETF -3.04%
DADS Digital Asset Debt Strategy ETF -0.76%
ISHG iShares 1-3 Year International Treasury Bond ETF -0.76%
TUA Simplify Short Term Treasury Futures Strategy ETF -0.71%
TYA Simplify Intermediate Term Treasury Futures Strategy ETF -0.54%

Analyzing the Weekly Flows

The channel experienced a massive influx of capital this week, recording $10.25B in net flows. Breaking down the activity, the FI: Multi-Sector segment saw the lion’s share of allocations with $4,822M in inflows. From a credit perspective, Investment Grade bonds utterly dominated, raking in $7,889M. Interest rate positioning heavily favored the middle of the curve, with Intermediate Duration bonds capturing a staggering $5,867M. No major segments posted negative net flows, though FI: Cat Bonds ($1M) and Credit: High Yield ($5M) saw negligible activity.

Flows by Segment

Segment Fund Count AUM 5 Day Flow 30 Day Flow 90 Day Flow YTD Flow 1 Year Flow
FI: Multi-Sector 278 $889.3B $4,822M $25,402M $69,109M $43,599M $205,890M
Fl: Government 117 $640.2B $3,352M $10,449M $30,933M $18,367M $122,045M
FI: Corporate 164 $387.8B $1,292M $10,578M $17,473M $12,403M $52,035M
FI: Securitized 40 $105.1B $321M $1,040M $3,305M $1,791M $17,103M
FI: Preferred Stock 25 $41.0B $287M $356M $655M $360M $2,045M
FI: Bank Loans 37 $61.8B $170M $2,096M $4,647M $4,253M $5,668M
FI: Cat Bonds 1 $0.0B $1M $10M $26M $11M $45M

Flows by Credit Type

Credit Type Fund Count AUM 5 Day Flow 30 Day Flow 90 Day Flow YTD Flow 1 Year Flow
Credit: Investment Grade 344 $1,698.5B $7,889M $38,307M $89,676M $61,854M $308,414M
Credit: Blend 168 $238.7B $2,350M $10,438M $28,923M $17,226M $75,847M
Credit: High Yield 149 $187.9B $5M $1,174M $7,522M $1,691M $20,449M

Flows by Duration

Duration Fund Count AUM 5 Day Flow 30 Day Flow 90 Day Flow YTD Flow 1 Year Flow
Duration: Intermediate 398 $1,245.6B $5,867M $31,379M $83,417M $52,236M $249,232M
Duration: Ultrashort 123 $402.1B $2,521M $11,848M $28,017M $19,299M $99,013M
Duration: Long 56 $198.1B $951M -$742M -$378M -$1,118M $9,587M
Duration: Short 84 $279.2B $904M $7,434M $15,064M $10,354M $46,878M

Top & Bottom 5 ETFs by 5-Day Flow

At the individual fund level, the iShares 0-3 Month Treasury Bond ETF (SGOV) commanded the largest allocations, absorbing $1,005M in 5-day flows. Conversely, the Vanguard Short-Term Corporate Bond ETF (VCSH) and the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) experienced the heaviest redemptions, bleeding $391M and $364M, respectively.

Inflows
Ticker Fund Name 5-Day Flow
SGOV iShares 0-3 Month Treasury Bond ETF $1,005M
VCIT Vanguard Intermediate-Term Corporate Bond ETF $726M
BND Vanguard Total Bond Market ETF $613M
VGLT Vanguard Long-Term Treasury ETF $441M
BNDX Vanguard Total International Bond ETF $374M
Outflows
Ticker Fund Name 5-Day Flow
VCSH Vanguard Short-Term Corporate Bond ETF -$391M
HYG iShares iBoxx $ High Yield Corporate Bond ETF -$364M
TLT iShares 20+ Year Treasury Bond ETF -$170M
BKLN Invesco Senior Loan ETF -$166M
EVSB Eaton Vance Ultra-Short Income ETF -$80M

Issuer League Table Update

iShares and Vanguard firmly maintain their dominance atop the issuer league tables, controlling an imposing 37.55% and 26.77% of the FI: Taxable market share, respectively. In the latest 5-day flow contest, Vanguard narrowly outpaced the pack, gathering $2,793M compared to iShares’ $2,494M. Conversely, F/m experienced the largest aggregate outflows among issuers, shedding $18M across its product lineup over the same period.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iShares 86 $798.13B 37.55%
Vanguard 30 $568.92B 26.77%
SPDR 39 $166.12B 7.82%
JPMorgan 19 $81.56B 3.84%
Schwab 12 $72.46B 3.41%

Top & Bottom 3 Issuers by 5-Day Flow

Inflows
Brand 5-Day Flow
Vanguard $2,793M
iShares $2,494M
JPMorgan $849M
Outflows
Brand 5-Day Flow
F/m -$18M
FlexShares -$15M
Goldman Sachs -$12M

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.