Taxable Bond ETFs Attract $13.2 Billion as Investors Rotate Out of Long-Duration Treasuries

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Weekly Channel Summary

The Taxable bond ETF channel encompasses 715 funds from 147 issuers, with total assets under management reaching $2.33 trillion. Investors added a strong $13.24 billion to the channel this week, contributing to a year-to-date net inflow of $345.61 billion. Over the past year, the channel has accumulated $527.42 billion in new assets.

This Week’s Performance Leaders and Laggards

Convertible bond ETFs led performance in the taxable space this week, posting a strong 2.26% gain. This category has been a standout performer throughout the year, now up 18.01% year-to-date. On the other end of the spectrum, Government Ultrashort funds were the laggards with a modest 0.08% weekly return.

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Taxable – Convertible 2.26% -0.13% -0.15% 11.53% 18.01% 26.35%
Taxable – Emerging 1.44% 1.44% 1.94% 1.02% 3.18% 8.07%
Taxable – Emerging USD 1.07% -0.23% 0.53% 1.11% 2.01% 7.26%
Taxable – International 1.02% 1.67% -0.72% -1.35% 0.03% 0.48%
Taxable – Long-Term 0.99% -1.52% -1.73% -2.48% -1.59% 0.55%
Taxable – Government Long 0.86% -1.14% -1.60% -2.42% -1.91% -0.19%
Taxable – Preferred Stock 0.80% 0.39% -0.82% 0.10% 1.81% 4.75%
Taxable – Securitized 0.68% -0.20% -0.22% -0.16% 0.53% 3.94%
Taxable – High Yield 0.67% 0.30% 1.24% 1.69% 2.42% 5.56%
Taxable – Corporate 0.63% -0.34% -0.30% -0.62% -0.04% 2.56%
Taxable – Core Enhanced 0.62% -0.24% -0.20% -0.35% 0.28% 2.88%
Taxable – International USD 0.61% 0.11% 0.50% 0.30% 0.98% 1.56%
Taxable – Multisector 0.60% 0.14% 0.77% 0.94% 1.71% 4.63%
Taxable – Core 0.58% -0.25% -0.32% -0.52% 0.02% 2.41%
Municipal – Single State 0.54% 0.30%
Taxable – Bank Loans 0.48% 0.83% 1.18% 2.48% 1.94% 4.57%
Taxable – Government Intermediate 0.46% -0.03% -0.28% -0.59% -0.30% 1.63%
Taxable – Short-Term 0.32% 0.30% 0.54% 0.64% 1.14% 3.29%
Taxable – Government Short 0.23% 0.37% 0.52% 0.66% 0.99% 2.82%
Taxable – Inflation Protected 0.16% -0.09% -0.31% 0.73% 1.32% 2.43%
Taxable – Ultrashort 0.12% 0.37% 1.04% 1.88% 2.38% 4.39%
Taxable – Government Ultrashort 0.08% 0.34% 0.94% 1.81% 2.19% 3.86%

Top & Bottom 5 ETFs by Weekly Performance

The Virtus Private Credit Strategy ETF (VPC) was the week’s top-performing taxable bond fund, surging by 6.53%. Following far behind but also posting strong returns was the VanEck Preferred Securities ex Financials ETF (PFXF), which gained 3.07%. Conversely, the Regan Fixed Rate MBS ETF (MBSX) experienced the largest decline, falling 3.26% for the week.

Ticker Fund Name WTD Performance
Top Performers
VPC Virtus Private Credit Strategy ETF 6.53%
PFXF VanEck Preferred Securities ex Financials ETF 3.07%
FCVT First Trust SSI Strategic Convertible Securities ETF 2.87%
MCVT Miller Convertible Total Return ETF 2.66%
ICVT iShares Convertible Bond ETF 2.31%
Bottom Performers
MBSX Regan Fixed Rate MBS ETF -3.26%
TFFI Chesapeake Trend-Following Fixed Income ETF -0.94%
PSK State Street SPDR ICE Preferred Securities ETF -0.43%
PCPI PIMCO Inflation PLUS Active ETF -0.21%
AGZD WisdomTree Interest Rate Hedged U.S. Aggregate Bond Fund -0.15%

Analyzing the Weekly Flows

Taxable bond ETFs attracted a substantial $13.24 billion in net inflows over the week. Investor demand was concentrated in Intermediate-duration funds, which gathered $7.13 billion, and Ultrashort-duration funds, which added $5.70 billion. In a notable divergence, Long-duration products faced significant redemptions, shedding $1.42 billion.

Flows by Segment

Segment Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Multi-Sector 300 $977.73B $5,583M $22,273M $71,250M $154,799M $244,400M
Government 130 $722.77B $3,694M $12,373M $40,003M $118,775M $175,087M
Corporate 158 $411.96B $2,521M $4,401M $26,606M $47,672M $75,419M
Bank Loans 49 $70.10B $1,184M $2,729M $7,124M $13,268M $16,247M
Securitized 46 $108.40B $323M $867M $4,368M $8,227M $11,807M
Cat Bonds 1 $84M $2M $6M $5M $50M $74M
Preferred Stock 30 $43.25B -$67M $1,002M $2,184M $2,816M $4,390M

Flows by Credit Type

Credit Type Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Credit: Investment Grade 369 $1,862.42B $8,858M $31,719M $111,864M $273,138M $407,837M
Credit: High Yield 153 $197.91B $2,527M $3,756M $12,388M $14,281M $26,468M
Credit: Blend 188 $273.63B $1,848M $8,117M $27,132M $57,984M $92,810M
Specialty: Interest Rate Volatility 1 $88M $0M $23M $67M $69M $69M

Flows by Duration

Duration Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Duration: Intermediate 412 $1,336.97B $7,133M $20,691M $87,275M $183,081M $297,649M
Duration: Ultrashort 146 $496.31B $5,697M $14,368M $43,189M $116,775M $148,353M
Duration: Short 91 $306.76B $1,826M $5,608M $17,633M $41,246M $61,883M
Duration: Long 62 $194.01B -$1,423M $2,947M $3,355M $4,371M $19,300M

Top & Bottom 5 ETFs by 5-Day Flow

The iShares 0-3 Month Treasury Bond ETF (SGOV) led all taxable funds, pulling in an impressive $1.98 billion. Meanwhile, the iShares 20+ Year Treasury Bond ETF (TLT) experienced the week’s largest outflows, with investors withdrawing $1.29 billion. The State Street SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) also saw significant redemptions, losing $489 million.

Ticker Fund Name 5-Day Flow
Inflows
SGOV iShares 0-3 Month Treasury Bond ETF $1,981M
BND Vanguard Total Bond Market ETF $731M
HYG iShares iBoxx $ High Yield Corporate Bond ETF $722M
JAAA Janus Henderson AAA CLO ETF $679M
IQMM ProShares GENIUS Money Market ETF $632M
Outflows
TLT iShares 20+ Year Treasury Bond ETF -$1,289M
BIL State Street SPDR Bloomberg 1-3 Month T-Bill ETF -$489M
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF -$231M
CLIP Global X 1-3 Month T-Bill ETF -$181M
DFCF Dimensional Core Fixed Income ETF -$157M

Note: the following fund(s) were excluded from the flow totals above because the weekly flow exceeds 75% of the fund’s AUM and may be the result of a custom rebalance: CPAG (-$144M).

Issuer League Table Update

iShares and Vanguard continue to dominate the taxable bond ETF landscape, commanding 36.28% and 26.21% of the market share, respectively. This week, iShares also led the league table for inflows, attracting $4.57 billion in new assets. On the other side of the ledger, Global X recorded the largest net outflows among issuers, with redemptions totaling $197 million.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iShares 88 $846.91B 36.28%
Vanguard 31 $611.94B 26.21%
SPDR 36 $174.35B 7.47%
JPMorgan 20 $96.93B 4.15%
Schwab 12 $78.07B 3.34%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
iShares $4,567M
Vanguard $2,970M
Janus Henderson $716M
Outflows
Global X -$197M
F/m -$55M
Invesco -$40M

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.