Weekly Channel Summary
The Taxable fixed income ETF channel, comprising 718 funds from 147 issuers, ended the week with total assets of $2.35 trillion. Investors allocated a net $11.8 billion to the space over the past five days, contributing to robust year-to-date inflows of $357.5 billion. Over the last twelve months, the channel has attracted over $525.6 billion in new capital.
This Week’s Performance Leaders and Laggards
Performance across taxable bond categories was mixed, with a wide gap between the leaders and laggards. Convertible bond ETFs surged, posting a 2.76% weekly gain and extending their impressive year-to-date return to 21.28%. In contrast, categories sensitive to interest rate changes struggled, as Long-Term bond funds fell by 0.74%, marking the week’s poorest performance.
Category Performance Snapshot
| Category | WTD | 1 Month | 3 Month | 6 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Taxable – Convertible | 2.76% | 2.36% | 0.30% | 14.11% | 21.28% | 28.92% |
| Taxable – Bank Loans | 0.25% | 0.91% | 1.34% | 2.90% | 2.20% | 4.72% |
| Taxable – Preferred Stock | 0.24% | 0.66% | -0.67% | -0.24% | 2.09% | 3.97% |
| Taxable – High Yield | 0.14% | 0.59% | 1.44% | 1.74% | 2.56% | 5.45% |
| Taxable – Government Short | 0.13% | 0.42% | 0.74% | 0.53% | 1.12% | 2.91% |
| Municipal – Single State | 0.12% | 0.35% | — | — | — | — |
| Taxable – Ultrashort | 0.10% | 0.42% | 1.05% | 1.88% | 2.48% | 4.37% |
| Taxable – Government Ultrashort | 0.08% | 0.34% | 0.94% | 1.80% | 2.26% | 3.86% |
| Taxable – Short-Term | 0.07% | 0.41% | 0.72% | 0.41% | 1.21% | 3.27% |
| Taxable – Multisector | 0.03% | 0.38% | 0.97% | 0.55% | 1.74% | 4.44% |
| Taxable – Inflation Protected | -0.01% | -0.00% | -0.41% | 0.33% | 1.31% | 2.42% |
| Taxable – Government Intermediate | -0.03% | 0.04% | 0.06% | -1.44% | -0.33% | 1.72% |
| Taxable – Securitized | -0.06% | -0.12% | 0.03% | -1.18% | 0.46% | 3.91% |
| Taxable – Core Enhanced | -0.11% | -0.12% | -0.01% | -1.27% | 0.16% | 2.81% |
| Taxable – Core | -0.12% | -0.17% | -0.14% | -1.50% | -0.10% | 2.34% |
| Taxable – Emerging USD | -0.17% | -0.06% | 0.76% | 0.15% | 1.84% | 6.43% |
| Taxable – Corporate | -0.26% | -0.23% | -0.40% | -1.61% | -0.30% | 2.21% |
| Taxable – Emerging | -0.30% | 1.11% | 2.24% | 0.05% | 2.87% | 7.47% |
| Taxable – International USD | -0.46% | -0.23% | 0.28% | -0.68% | 0.53% | 1.34% |
| Taxable – International | -0.46% | 1.11% | -0.26% | -2.92% | -0.44% | 0.25% |
| Taxable – Government Long | -0.58% | -1.35% | -1.52% | -4.96% | -2.53% | -0.32% |
| Taxable – Long-Term | -0.74% | -1.41% | -2.12% | -4.63% | -2.32% | -0.14% |
Top & Bottom 5 ETFs by Weekly Performance
The week’s top-performing funds were dominated by convertible bond strategies, reflecting the strength in their underlying category. First Trust SSI Strategic Convertible Securities ETF (FCVT) and iShares Convertible Bond ETF (ICVT) both led the pack with returns of 2.86%. Conversely, the funds with the largest declines were concentrated in long-duration government debt, with the PIMCO 25+ Year Zero Coupon US Treasury Index Exchange-Traded Fund (ZROZ) declining by 1.80%.
| Ticker | Fund Name | WTD Performance |
|---|---|---|
| Top Performers | ||
| FCVT | First Trust SSI Strategic Convertible Securities ETF | 2.86% |
| ICVT | iShares Convertible Bond ETF | 2.86% |
| CWB | State Street SPDR Bloomberg Convertible Securities ETF | 2.64% |
| CVRT | Calamos Convertible Equity Alternative ETF | 2.61% |
| SPFF | Global X SuperIncome Preferred ETF | 1.58% |
| Bottom Performers | ||
| ZROZ | PIMCO 25+ Year Zero Coupon US Treasury Index Exchange-Traded Fund | -1.80% |
| GOVZ | iShares 25+ Year Treasury STRIPS Bond ETF | -1.76% |
| DWWN | Principal Long Duration ETF | -1.56% |
| EDV | Vanguard Extended Duration Treasury ETF | -1.52% |
| XTWY | BondBloxx Bloomberg Twenty Year Target Duration US Treasury ETF | -1.14% |
Analyzing the Weekly Flows
Investors poured nearly $11.8 billion into taxable bond ETFs, with Multi-Sector and Government funds leading the way by segment, attracting $6.6 billion and $4.1 billion, respectively. From a credit perspective, Investment Grade funds were the clear favorite, pulling in $9.6 billion while High Yield funds saw net redemptions of $406 million. Intermediate duration funds gathered the most assets with $5.9 billion, though long duration funds also saw significant interest with $1.9 billion in new assets despite underperforming.
Flows by Segment
| Segment | Fund Count | AUM | 5 Day | 30 Day | 90 Day | YTD | 1 Year |
|---|---|---|---|---|---|---|---|
| Multi-Sector | 304 | $985.76B | $6,589M | $22,779M | $71,874M | $161,525M | $247,618M |
| Government | 130 | $728.68B | $4,122M | $13,066M | $41,141M | $122,896M | $176,360M |
| Bank Loans | 49 | $71.29B | $535M | $2,756M | $7,126M | $13,802M | $16,380M |
| Corporate | 158 | $413.55B | $287M | $4,481M | $23,407M | $47,959M | $69,092M |
| Securitized | 46 | $108.77B | $224M | $948M | $4,223M | $8,451M | $11,790M |
| Preferred Stock | 30 | $43.39B | $21M | -$129M | $1,800M | $2,836M | $4,318M |
| Cat Bonds | 1 | $85M | $1M | $6M | $5M | $51M | $75M |
Flows by Credit Type
| Credit Type | Fund Count | AUM | 5 Day | 30 Day | 90 Day | YTD | 1 Year |
|---|---|---|---|---|---|---|---|
| Credit: Investment Grade | 370 | $1,875.99B | $9,624M | $33,077M | $111,487M | $282,897M | $407,020M |
| Credit: Blend | 191 | $276.27B | $2,542M | $8,067M | $27,695M | $60,530M | $94,084M |
| Specialty: Interest Rate Volatility | 1 | $92M | $4M | $11M | $68M | $73M | $73M |
| Credit: High Yield | 153 | $198.90B | -$406M | $2,709M | $10,229M | $13,876M | $24,203M |
Flows by Duration
| Duration | Fund Count | AUM | 5 Day | 30 Day | 90 Day | YTD | 1 Year |
|---|---|---|---|---|---|---|---|
| Duration: Intermediate | 416 | $1,345.00B | $5,890M | $21,001M | $84,366M | $189,108M | $295,514M |
| Duration: Ultrashort | 146 | $501.86B | $2,443M | $14,435M | $42,272M | $119,218M | $148,887M |
| Duration: Long | 62 | $195.18B | $1,874M | $1,753M | $4,902M | $6,245M | $19,643M |
| Duration: Short | 91 | $309.21B | $1,559M | $6,675M | $17,938M | $42,805M | $61,336M |
Top & Bottom 5 ETFs by 5-Day Flow
A significant rotation was evident at the fund level, highlighting a clear bet on longer duration. The iShares 20+ Year Treasury Bond ETF (TLT) single-handedly attracted $5.6 billion, making it the week’s top asset gatherer. This inflow was largely offset by a massive $4.1 billion redemption from the iShares 7-10 Year Treasury Bond ETF (IEF). The State Street SPDR Bloomberg High Yield Bond ETF (JNK) also experienced significant outflows, shedding $536 million.
| Ticker | Fund Name | 5-Day Flow |
|---|---|---|
| Inflows | ||
| TLT | iShares 20+ Year Treasury Bond ETF | $5,606M |
| SGOV | iShares 0-3 Month Treasury Bond ETF | $1,096M |
| FBND | Fidelity Total Bond ETF | $842M |
| CGCB | Capital Group Core Bond ETF | $625M |
| BSV | Vanguard Short-Term Bond ETF | $605M |
| Outflows | ||
| IEF | iShares 7-10 Year Treasury Bond ETF | -$4,136M |
| JNK | State Street SPDR Bloomberg High Yield Bond ETF | -$536M |
| SPIB | State Street SPDR Portfolio Intermediate Term Corporate Bond ETF | -$298M |
| TBLL | Invesco Short Term Treasury ETF | -$249M |
| USHY | iShares Broad USD High Yield Corporate Bond ETF | -$234M |
Issuer League Table Update
The issuer landscape remains dominated by iShares and Vanguard, which command 36.26% and 26.23% of the channel’s assets, respectively. iShares also led the week in asset gathering, pulling in a net $4.5 billion, followed by Vanguard with $2.8 billion in new capital. On the other end of the spectrum, WisdomTree recorded the largest net outflows for the week, with investors withdrawing $154 million.
Top 5 Issuers by AUM
| Brand | Fund Count | AUM | AUM Market Share |
|---|---|---|---|
| iShares | 88 | $852.59B | 36.26% |
| Vanguard | 31 | $616.90B | 26.23% |
| SPDR | 36 | $174.48B | 7.42% |
| JPMorgan | 20 | $97.63B | 4.15% |
| Schwab | 12 | $78.78B | 3.35% |
Top & Bottom 3 Issuers by 5-Day Flow
| Brand | 5-Day Flow |
|---|---|
| Inflows | |
| iShares | $4,519M |
| Vanguard | $2,841M |
| Fidelity | $845M |
| Outflows | |
| WisdomTree | -$154M |
| Simplify | -$152M |
| SPDR | -$149M |
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.
