Steady Inflows and Mixed Returns for Specialty FI ETFs

Share

Weekly Channel Summary

The Fixed Income (FI): Specialty ETF channel continues to represent a significant niche within the income landscape, currently commanding a total of $65B in Assets Under Management (AUM). The channel consists of 121 ETFs managed across 15 distinct issuers. Market activity remains healthy, with the channel attracting $0.58B in net new assets over the past five days. Looking at the longer-term trajectory, the channel has seen modest Year-to-Date (YTD) flows of $0.10B, while the 1-year trailing flow remains robust at $22.47B.

This Week’s Performance Leaders and Laggards

Performance across the specialty categories was mixed this week as interest rate expectations shifted. The single best-performing category was “Fixed Income: Specialty – Interest Rate Volatility,” which posted a Week-to-Date (WTD) return of 0.16%. Conversely, the “Fixed Income: Specialty – Maturing Ladder” category trailed as the week’s laggard with a return of -0.20%. On a Year-to-Date basis, the Interest Rate Volatility segment maintains a positive stance at 0.37%, while the Maturing Ladder segment is down -0.13%.

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Interest Rate Volatility 0.16% -0.22% 0.08% -1.95% 0.37% -1.28%
Defined Maturity -0.01% 0.23% 0.78% 3.00% -0.01% 6.53%
Maturing Ladder -0.20% -0.41% -0.17% 1.89% -0.13% 5.15%

Top & Bottom 5 ETFs by Weekly Performance

At the individual fund level, the Simplify Interest Rate Hedge ETF (PFIX) led the pack with a strong 1.17% gain. On the other end of the spectrum, the Simplify Bond Bull ETF (RFIX) and the Quadratic Deflation ETF (BNDD) struggled, posting returns of -1.56% and -0.81%, respectively.

Ticker Fund Name WTD Performance
Top Performers
PFIX Simplify Interest Rate Hedge ETF 1.17%
RISR FolioBeyond Alt Income & Int Rate Hedge ETF 0.89%
RYSE Vest 10 Year Interest Rate Hedge ETF 0.86%
RINF ProShares Inflation Expectations ETF 0.60%
BSMZ Invesco BulletShares 2035 Municipal Bond ETF 0.26%
Bottom Performers
RFIX Simplify Bond Bull ETF -1.56%
BNDD Quadratic Deflation ETF -0.81%
IBGK iShares iBonds Dec 2054 Term Treasury ETF -0.76%
IBGL iShares iBonds Dec 2055 Term Treasury ETF -0.76%
LFBE LifeX 2065 Longevity Income ETF -0.65%

Analyzing the Weekly Flows

The specialty channel saw net inflows totaling $584M this week. Demand was concentrated in the “Defined Maturity” category, which dominated the landscape with $617M in fresh capital; this segment currently holds $63.4B in total AUM. In contrast, the “Specialty – Interest Rate Volatility” category experienced the largest pullback, recording -$33M in weekly outflows.

Category Flows Summary

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Defined Maturity 91 $63.4B $617M $3,856M $7,665M $103M $22,185M
Maturing Ladder 20 $0.1B $0M $4M ($104M) $0M $89M
Interest Rate Volatility 10 $1.0B ($33M) $33M $52M ($2M) $196M

Top & Bottom 5 ETFs by 5-Day Flow

Individual flow leaders were topped by the iShares iBonds Dec 2028 Term Corporate ETF (IBDT) with $43M in inflows. On the outflow side, the KraneShares Quadratic Interest Rate Volatility and Inflation Hedge ETF (IVOL) and the Simplify Bond Bull ETF (RFIX) saw the most significant withdrawals of -$24M and -$8M, respectively.

Ticker Fund Name 5-Day Flow
Inflows
IBDT iShares iBonds Dec 2028 Term Corporate ETF $43M
IBDR iShares iBonds Dec 2026 Term Corporate ETF $37M
BSCR Invesco BulletShares 2027 Corporate Bond ETF $33M
IBDS iShares iBonds Dec 2027 Term Corporate ETF $30M
IBDV iShares iBonds Dec 2030 Term Corporate ETF $30M
Outflows
IVOL KraneShares Quadratic Interest Rate Volatility ETF ($24M)
RFIX Simplify Bond Bull ETF ($8M)
RINF ProShares Inflation Expectations ETF ($1M)

Issuer League Table Update

The issuer landscape remains highly concentrated, with iShares ($37.15B) and Invesco ($26.05B) maintaining the largest market shares. iShares led the field in weekly activity with $389M in new inflows. Conversely, Quadratic saw the most significant net outflows of the week at -$24M.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iShares 47 $37.15B 57.57%
Invesco 28 $26.05B 40.36%
Quadratic 1 $0.50B 0.77%
Simplify 2 $0.24B 0.37%
FolioBeyond 1 $0.18B 0.28%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
iShares $389M
Invesco $228M
N/A (No other positive brands) $0M
Outflows
Quadratic ($24M)
Simplify ($8M)
ProShares ($1M)

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.