Taxable Bond ETFs See $17.8B Inflow as LQD and TLT Lead the Pack

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Weekly Channel Summary

The Taxable channel encompasses 711 ETFs from 147 issuers, with total assets under management reaching $2.30 trillion. Investors allocated a significant $17.8 billion in net new assets to the channel over the past week. This brings year-to-date inflows to $294.8 billion and the one-year total to a robust $509.0 billion.

This Week’s Performance Leaders and Laggards

Performance was mixed across taxable bond categories, with returns sensitive to duration. Preferred Stock funds led the way with a 0.62% weekly gain, followed by Bank Loans and High Yield funds, both up 0.32%. At the other end of the spectrum, Government Long funds were the worst performers, falling 1.28% as longer-term rates rose. Despite a weekly loss of 1.02%, Convertible bond funds remain the standout performers year-to-date, with a gain of 19.04%.

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Taxable – Preferred Stock 0.62% -1.32% 1.88% 0.65% 1.37% 5.33%
Taxable – Bank Loans 0.33% 0.01% 1.76% 0.85% 0.88% 4.13%
Taxable – High Yield 0.32% 0.35% 1.96% 1.98% 2.04% 5.66%
Taxable – Emerging 0.32% 0.31% 3.21% 1.53% 1.68% 6.63%
Taxable – International 0.11% -1.43% 0.42% -0.97% -1.18% -1.75%
Taxable – Ultrashort 0.08% 0.34% 1.14% 1.94% 1.98% 4.57%
Taxable – Government Ultrashort 0.08% 0.32% 0.90% 1.79% 1.82% 3.93%
Taxable – Emerging USD 0.08% 0.35% 3.62% 2.57% 2.58% 9.60%
Municipal – Single State 0.06%
Taxable – Government Short 0.01% 0.23% 0.40% 0.70% 0.72% 3.08%
Taxable – Multisector -0.01% 0.37% 1.73% 1.61% 1.65% 5.37%
Taxable – Short-Term -0.03% 0.28% 0.66% 0.97% 0.98% 3.86%
Taxable – Inflation Protected -0.10% -0.43% 0.48% 1.47% 1.44% 3.50%
Taxable – International USD -0.30% 0.34% 1.32% 1.32% 1.31% 2.41%
Taxable – Corporate -0.30% 0.22% 0.80% 0.83% 0.80% 4.38%
Taxable – Government Intermediate -0.34% 0.25% -0.00% 0.11% 0.07% 2.78%
Taxable – Core Enhanced -0.35% 0.26% 0.67% 0.92% 0.89% 4.37%
Taxable – Core -0.41% 0.23% 0.38% 0.70% 0.66% 3.89%
Taxable – Securitized -0.43% 0.22% 0.36% 1.13% 1.02% 5.18%
Taxable – Long-Term -0.86% 0.08% 0.94% 1.24% 1.10% 4.19%
Taxable – Convertible -1.02% -5.36% 12.88% 17.24% 19.04% 30.72%
Taxable – Government Long -1.28% 0.23% -0.23% 0.24% 0.10% 2.54%

Top & Bottom 5 ETFs by Weekly Performance

The top-performing fund this week was the Polen High Income ETF (PCHI), which posted a strong 6.13% return. In contrast, funds with the longest duration suffered the most significant losses. The iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ) declined by 2.95%, and the PIMCO 25+ Year Zero Coupon US Treasury Index Exchange-Traded Fund (ZROZ) fell 2.76%, highlighting the impact of interest rate sensitivity.

Ticker Fund Name WTD Performance
Top Performers
PCHI Polen High Income ETF 6.13%
VPC Virtus Private Credit Strategy ETF 1.94%
ACVT Advent Convertible Bond ETF 1.52%
FXED Sound Enhanced Fixed Income ETF 1.43%
PFFR InfraCap REIT Preferred ETF 1.37%
Bottom Performers
GOVZ iShares 25+ Year Treasury STRIPS Bond ETF -2.95%
ZROZ PIMCO 25+ Year Zero Coupon US Treasury Index Exchange-Traded Fund -2.76%
DWWN Principal Long Duration ETF -2.65%
EDV Vanguard Extended Duration Treasury ETF -2.61%
DADS Digital Asset Debt Strategy ETF -2.39%

Analyzing the Weekly Flows

Investors poured $17.8 billion into taxable bond ETFs, with broad participation across segments. Multi-Sector funds led with $6.3 billion in net inflows, closely followed by Corporate funds at $5.3 billion and Government funds at $5.1 billion. From a credit perspective, Investment Grade strategies dominated, attracting $14.1 billion. By duration, intermediate-term funds were the most popular, pulling in $10.4 billion for the week.

Flows by Segment

Segment Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Multi-Sector 297 $959.84B $6,277M $21,956M $61,155M $129,249M $236,222M
Corporate 158 $411.01B $5,267M $14,094M $31,365M $42,101M $71,266M
Government 128 $713.78B $5,050M $11,706M $28,164M $104,474M $168,713M
Bank Loans 49 $67.33B $626M $1,735M $6,777M $10,050M $15,735M
Securitized 46 $108.24B $344M $1,906M $4,175M $7,192M $13,535M
Preferred Stock 28 $40.86B $217M $296M $1,586M $1,683M $3,415M
Cat Bonds 1 $77M $1M -$0M $21M $43M $69M

Flows by Credit Type

Credit Type Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Credit: Investment Grade 365 $1,840.59B $14,144M $37,760M $91,860M $236,004M $393,520M
Credit: High Yield 151 $193.82B $1,918M $5,082M $16,645M $10,058M $26,605M
Credit: Blend 187 $266.44B $1,714M $8,825M $24,610M $48,588M $88,581M
Specialty: Interest Rate Volatility 1 $65M $0M $9M $45M $45M $45M

Flows by Duration

Duration Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Duration: Intermediate 412 $1,325.49B $10,430M $33,995M $83,972M $158,620M $287,929M
Duration: Ultrashort 144 $482.41B $3,626M $13,345M $29,942M $100,958M $147,788M
Duration: Long 60 $192.23B $2,287M $804M $2,243M $690M $12,835M
Duration: Short 88 $300.78B $1,433M $3,531M $17,003M $34,428M $60,200M

Top & Bottom 5 ETFs by 5-Day Flow

The iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) was the week’s top asset gatherer, taking in over $2.6 billion. The iShares 20+ Year Treasury Bond ETF (TLT) also saw strong demand, with $1.8 billion in new assets. On the other side, the Vanguard Long-Term Corporate Bond ETF (VCLT) experienced the largest redemption of $506 million, followed by the Vanguard Short-Term Bond ETF (BSV) with $248 million in outflows.

Ticker Fund Name 5-Day Flow
Inflows
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF $2,573M
TLT iShares 20+ Year Treasury Bond ETF $1,816M
BND Vanguard Total Bond Market ETF $1,654M
HYG iShares iBoxx $ High Yield Corporate Bond ETF $560M
JPST JPMorgan Ultra-Short Income ETF $557M
Outflows
VCLT Vanguard Long-Term Corporate Bond ETF -$506M
BSV Vanguard Short-Term Bond ETF -$248M
QLTA iShares Aaa-A Rated Corporate Bond ETF -$123M
SHY iShares 1-3 Year Treasury Bond ETF -$90M
TIP iShares TIPS Bond ETF -$88M

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: XBOX (-$287M), FSTB ($172M), SGVA ($101M), CSHP (-$83M).

Issuer League Table Update

iShares and Vanguard continue to dominate the taxable bond landscape, commanding 36.49% and 26.24% of the market share, respectively. iShares also led the week in asset gathering, attracting a formidable $8.1 billion in net inflows. Outflows among issuers were minimal in comparison, with Allspring posting the largest net redemption at just $30 million.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iShares 88 $839.99B 36.49%
Vanguard 31 $604.06B 26.24%
SPDR 37 $173.01B 7.52%
JPMorgan 19 $91.89B 3.99%
Schwab 12 $78.09B 3.39%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
iShares $8,103M
Vanguard $2,849M
JPMorgan $1,221M
Outflows
Allspring -$30M
GMO -$9M
SEI -$3M

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.