The U.S. taxable fixed income ETF market, a massive landscape of 623 funds from 130 issuers with $1.88 trillion in assets, saw robust inflows of $6.46 billion this week. The gains were led by government and long-duration bonds, with the Government Long category posting an impressive 2.35% return. The top individual performer was the iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ), which surged 4.46%, underscoring the market’s appetite for duration exposure.
Weekly Performance Recap: A Flight to Safety and Duration
This week’s performance was characterized by a clear preference for safety and duration. Government Long bonds were the standout performers, followed closely by Long-Term bonds, which returned 2.07%. Corporate and Preferred Stock also posted solid gains of 1.02% and 0.97%, respectively. At the other end of the spectrum, Bank Loans and Government Ultrashort bonds lagged, with returns of just 0.13% and 0.10%, respectively. This flight to quality and duration suggests investors may be positioning for a lower-rate environment.
Category Performance:
| Category | WTD | 1M | 3M | YTD |
| Government Long | +2.35% | +0.87% | +3.80% | +5.11% |
| Long-Term | +2.07% | +1.54% | +4.99% | +6.77% |
| Corporate | +1.02% | +1.26% | +3.80% | +6.63% |
| Preferred Stock | +0.97% | +1.77% | +4.81% | +5.06% |
| Core Enhanced | +0.88% | +1.24% | +3.46% | +6.09% |
| Core | +0.88% | +1.17% | +3.34% | +5.92% |
| Emerging USD | +0.86% | +1.79% | +5.32% | +8.91% |
| Government Intermediate | +0.73% | +1.12% | +3.05% | +6.43% |
| Securitized | +0.65% | +1.23% | +3.39% | +6.12% |
| Multisector Taxable | +0.64% | +1.16% | +3.25% | +5.71% |
| Convertible | +0.53% | +2.03% | +6.45% | +12.69% |
| Emerging | +0.48% | +1.62% | +4.11% | +9.96% |
| Inflation Protected | +0.47% | +1.19% | +3.21% | +6.74% |
| High Yield | +0.35% | +1.34% | +3.38% | +6.39% |
| International | +0.35% | +1.07% | +1.75% | +11.14% |
| Short-Term | +0.32% | +0.87% | +2.32% | +4.95% |
| International USD | +0.31% | +0.02% | +1.00% | +2.41% |
| Government Short | +0.28% | +0.72% | +1.83% | +4.23% |
| Ultrashort | +0.15% | +0.55% | +1.54% | +3.61% |
| Bank Loans | +0.13% | +0.73% | +2.26% | +3.99% |
| Government Ultrashort | +0.10% | +0.41% | +1.12% | +2.94% |
Top & Bottom Individual ETF Returns (Week-to-Date):
| Ticker | Fund Name | WTD Return |
| Top 3 Performers | ||
| GOVZ | iShares 25+ Year Treasury STRIPS Bond ETF | +4.46% |
| ZROZ | PIMCO 25+ Year Zero Coupon US Treasury Index Exchange-Traded Fund | +4.42% |
| EDV | Vanguard Extended Duration Treasury ETF | +4.18% |
| Bottom 3 Performers | ||
| VPC | Virtus Private Credit Strategy ETF | -0.48% |
| DRSK | Aptus Defined Risk ETF | -0.38% |
| DADS | Digital Asset Debt Strategy ETF | -0.29% |
Weekly Flows Summary: Investors Target Intermediate Duration and High-Quality Debt
Investors poured capital into taxable fixed income ETFs this week, with a clear preference for specific segments and maturities. Multi-Sector and Government funds led the way by segment, attracting nearly $3 billion and $2.4 billion, respectively. A deeper look reveals a significant trend in duration positioning: intermediate-duration funds were the week’s big winner, pulling in a massive $3.8 billion. Ultrashort funds also saw strong demand with $2.6 billion in new assets. This focus on the belly of the curve, coupled with strong interest in the front end, suggests investors are balancing income generation with a cautious stance. Notably, short-duration funds were the only category to see net outflows, shedding $179 million. In terms of credit quality, investment-grade funds were the clear favorite, capturing over $4.5 billion.
Flows by Segment (5-Day):
| Segment | Fund Count | AUM | WTD Flow | 1M Flow | YTD Flow |
| FI: Multi-Sector | 252 | $760.2B | +$2,989M | +$15,897M | +$109,136M |
| FI: Government | 112 | $569.7B | +$2,369M | +$10,353M | +$73,488M |
| FI: Securitized | 36 | $99.1B | +$580M | +$1,964M | +$16,740M |
| FI: Corporate | 162 | $353.9B | +$241M | +$10,438M | +$25,534M |
| FI: Bank Loans | 33 | $57.0B | +$226M | +$2,339M | +$11,079M |
| FI: Preferred Stock | 25 | $39.1B | +$55M | +$371M | +$851M |
| FI: Cat Bonds | 1 | $0.0B | $0M | +$1M | +$11M |
Flows by Credit Type (5-Day):
| Credit Type | Fund Count | AUM | WTD Flow | 1M Flow | YTD Flow |
| Credit: Investment Grade | 327 | $1,518.7B | +$4,582M | +$33,548M | +$186,563M |
| Credit: Blend | 149 | $185.4B | +$1,399M | +$5,945M | +$35,086M |
| Credit: High Yield | 146 | $175.8B | +$480M | +$1,841M | +$15,030M |
Flows by Duration (5-Day):
| Duration | Fund Count | AUM | WTD Flow | 1M Flow | YTD Flow |
| Duration: Intermediate | 370 | $1,086.3B | +$3,795M | +$24,869M | +$126,511M |
| Duration: Ultrashort | 112 | $358.1B | +$2,593M | +$9,413M | +$83,886M |
| Duration: Long | 58 | $183.9B | +$251M | +$1,921M | +$1,140M |
| Duration: Short | 82 | $251.7B | -$179M | +$5,131M | +$25,142M |
Largest Individual ETF Flows (5-Day):
| Ticker | Fund Name | Flow |
| Top 10 Inflows | ||
| SGOV | iShares 0-3 Month Treasury Bond ETF | +$1,303M |
| SCCR | Schwab Core Bond ETF | +$569M |
| LQD | iShares iBoxx $ Investment Grade Corporate Bond ETF | +$339M |
| JPLD | JPMorgan Limited Duration Bond ETF | +$324M |
| EMB | iShares JP Morgan USD Emerging Markets Bond ETF | +$308M |
| HYG | iShares iBoxx $ High Yield Corporate Bond ETF | +$307M |
| JPST | JPMorgan Ultra-Short Income ETF | +$245M |
| BND | Vanguard Total Bond Market ETF | +$235M |
| VGIT | Vanguard Intermediate-Term Treasury ETF | +$212M |
| SCYB | Schwab High Yield Bond ETF | +$188M |
| Top 10 Outflows | ||
| SCHO | Schwab Short-Term US Treasury ETF | -$547M |
| VCIT | Vanguard Intermediate-Term Corporate Bond ETF | -$416M |
| SPSB | SPDR Portfolio Short Term Corporate Bond ETF | -$298M |
| SCHR | Schwab Intermediate-Term US Treasury ETF | -$166M |
| USHY | iShares Broad USD High Yield Corporate Bond ETF | -$164M |
| SCHI | Schwab 5-10 Year Corporate Bond ETF | -$110M |
| VGSH | Vanguard Short-Term Treasury ETF | -$93M |
| IGSB | iShares 1-5 Year Investment Grade Corporate Bond ETF | -$82M |
| BLV | Vanguard Long-Term Bond ETF | -$70M |
| FLOT | iShares Floating Rate Bond ETF | -$66M |
Issuer and Product Landscape
The taxable fixed income ETF market is heavily concentrated, with iShares and Vanguard controlling a combined 65.13% of the assets. This week, iShares led the pack with over $3 billion in inflows, followed by JPMorgan with $847 million. SPDR experienced the largest outflows, shedding $107 million. The market continues to grow, with 35 new taxable fixed income ETFs launched in the past three months, a testament to the ongoing innovation in this space.
Issuer Flow Leaders & Laggards (5-Day):
| Issuer | AUM | Market Share | WTD Flow | WTD Flow (% of AUM) |
| Top 3 Inflows | ||||
| iShares | $724.07B | 38.51% | +$3,073M | +0.42% |
| JPMorgan | $64.23B | 3.42% | +$847M | +1.32% |
| Vanguard | $500.52B | 26.62% | +$699M | +0.14% |
| Top 3 Outflows | ||||
| SPDR | $159.04B | 8.46% | -$107M | -0.07% |
| FlexShares | $7.12B | 0.38% | -$41M | -0.58% |
| WisdomTree | $21.79B | 1.16% | -$33M | -0.15% |
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.
