Corporate Credit Leads the Charge: $6.49B Pours In While Government Funds Bleed

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Weekly Channel Summary

The Taxable Fixed Income ETF channel encompasses a massive footprint of 689 ETFs across 141 unique brands, totaling $2,194 billion in Assets Under Management (AUM). Flow activity remained healthy over the past week with the segment drawing in $4.41 billion in net new money. This recent surge pushes the channel’s Year-to-Date (YTD) net flows to $170.90 billion, contributing to an impressive $452.85 billion gathered over the trailing 1-year period.

This Week’s Performance Leaders and Laggards

The Convertible category took the definitive lead this week, posting a robust Week-to-Date (WTD) return of 3.81%. This recent burst further cements its status as a top performer with a YTD gain of 13.50%. On the flip side, the Government Ultrashort category brought up the rear with a muted WTD return of 0.08%, though it still holds onto a positive 1.02% mark YTD.

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Convertible 3.81% 7.00% 8.29% 12.69% 13.50% 48.94%
Emerging USD 1.18% 2.06% 1.89% 4.33% 2.08% 13.96%
International 1.15% 2.07% 1.75% 1.56% 1.31% 5.21%
Preferred Stock 1.10% 1.44% 0.35% 2.25% 1.64% 10.89%
Emerging 1.06% 2.32% 1.92% 4.85% 2.42% 13.76%
Long-Term 0.95% 1.27% 0.37% -0.56% 0.89% 8.60%
Corporate 0.74% 1.11% 0.73% 0.84% 0.89% 7.69%
Government Long 0.72% -0.09% 0.34% -1.96% 0.55% 4.22%
Bank Loans 0.71% 1.36% -0.47% 1.51% 0.11% 6.27%
Multisector Taxable 0.70% 0.92% 0.72% 1.77% 1.15% 7.54%
High Yield 0.69% 1.48% 0.81% 2.77% 1.45% 9.78%
Core Enhanced 0.62% 0.61% 0.83% 1.25% 1.06% 6.95%
Government Intermediate 0.57% 0.14% 0.73% 0.51% 0.53% 4.44%
Core 0.56% 0.46% 0.80% 0.99% 0.91% 6.15%
International USD 0.52% 0.63% 0.54% 0.49% 0.82% 3.00%
Securitized 0.47% 0.40% 1.07% 2.03% 1.34% 7.16%
Inflation Protected 0.37% 0.14% 1.26% 0.91% 1.39% 5.11%
Short-Term 0.36% 0.50% 0.78% 1.66% 0.88% 5.52%
Government Short 0.28% 0.25% 0.71% 1.25% 0.65% 3.90%
Ultrashort 0.16% 0.50% 0.87% 2.10% 1.13% 5.32%
Government Ultrashort 0.08% 0.33% 0.86% 1.83% 1.02% 3.97%

Top & Bottom 5 ETFs by Weekly Performance

Drilling into the individual fund level, the VPC (Virtus Private Credit Strategy ETF) led all peers with a 5.13% leap. Meanwhile, TFFI (Chesapeake Trend-Following Fixed Income ETF) and GGOV (iShares Global Government Bond USD Hedged Active ETF) struggled, dropping -0.35% and -0.14%, respectively.

Ticker Fund Name WTD Performance
Top Performers
VPC Virtus Private Credit Strategy ETF 5.13%
SPFF Global X SuperIncome Preferred ETF 4.44%
CWB State Street SPDR Bloomberg Convertible Securities ETF 4.17%
CVRT Calamos Convertible Equity Alternative ETF 4.09%
FCVT First Trust SSI Strategic Convertible Securities ETF 4.08%
Bottom Performers
TFFI Chesapeake Trend-Following Fixed Income ETF -0.35%
GGOV iShares Global Government Bond USD Hedged Active ETF -0.14%
ICPI iShares 0-1 Year TIPS Bond ETF 0.03%
BAMU Brookstone Ultra-Short Bond ETF 0.04%
BENJ Horizon Landmark ETF 0.04%

Analyzing the Weekly Flows

Taxable Fixed Income saw robust capital formation overall, drawing in $4.38 billion in total net flows. When parsing the data further, Corporate ETFs dominated the segments with $6.49 billion added. Investors gravitated heavily towards High Yield credit ($3.07 billion) and Intermediate duration vehicles ($8.17 billion). The Government segment, particularly the Ultrashort duration group, suffered the heaviest redemptions, bleeding $5.58 billion and $5.55 billion, respectively, as capital appeared to stretch for duration and credit risk.

Flows by Segment

Segment Fund Count AUM 5 Day Flow 30 Day Flow 90 Day Flow YTD Flow 1 Year Flow
FI: Corporate 164 $389.4B $6,495M $6,071M $16,685M $18,553M $61,054M
FI: Multi-Sector 288 $907.3B $2,708M $8,066M $54,817M $69,894M $212,627M
FI: Bank Loans 44 $61.7B $472M $1,765M $1,979M $4,053M $13,581M
FI: Securitized 42 $105.7B $143M $915M $2,705M $3,362M $17,985M
FI: Preferred Stock 27 $40.3B $142M ($211M) $331M $272M $2,170M
FI: Cat Bonds 1 $0.1B $5M $14M $32M $33M $62M
Fl: Government 120 $689.9B ($5,583M) $16,285M $66,952M $74,703M $145,336M

Flows by Credit Type

Credit Type Fund Count AUM 5 Day Flow 30 Day Flow 90 Day Flow YTD Flow 1 Year Flow
Credit: High Yield 153 $182.3B $3,067M $1,150M ($3,620M) ($2,747M) $25,804M
Credit: Blend 174 $244.9B $1,177M $3,021M $20,313M $25,860M $79,211M
Credit: Investment Grade 358 $1,767.0B $136M $28,728M $126,787M $147,737M $347,673M

Flows by Duration

Duration Fund Count AUM 5 Day Flow 30 Day Flow 90 Day Flow YTD Flow 1 Year Flow
Duration: Intermediate 407 $1,262.4B $8,171M $11,131M $64,692M $82,855M $265,874M
Duration: Short 85 $287.9B $1,425M $6,106M $17,019M $19,757M $52,893M
Duration: Long 58 $192.5B $334M ($1,345M) ($694M) ($1,030M) $8,652M
Duration: Ultrashort 135 $451.4B ($5,550M) $17,008M $62,464M $69,268M $125,270M

Top & Bottom 5 ETFs by 5-Day Flow

Focusing on individual funds, LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) commanded the largest capital influx, accumulating an immense $1.90 billion over the last five days. The largest wave of liquidations hit the BIL (State Street SPDR Bloomberg 1-3 Month T-Bill ETF) and SGOV (iShares 0-3 Month Treasury Bond ETF), which saw -$3.13 billion and -$1.73 billion walk out the door, respectively.

Ticker Fund Name 5-Day Flow
Inflows
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF $1,904M
HYG iShares iBoxx $ High Yield Corporate Bond ETF $699M
USHY iShares Broad USD High Yield Corporate Bond ETF $666M
VCSH Vanguard Short-Term Corporate Bond ETF $595M
PULS PGIM Ultra Short Bond ETF $522M
Outflows
BIL State Street SPDR Bloomberg 1-3 Month T-Bill ETF ($3,131M)
SGOV iShares 0-3 Month Treasury Bond ETF ($1,729M)
IEF iShares 7-10 Year Treasury Bond ETF ($830M)
USFR Wisdom Tree Floating Rate Treasury Fund ($726M)
MINT PIMCO Enhanced Short Maturity Active Exchange-Traded Fund ($345M)

Issuer League Table Update

The issuer landscape continues to be led by iShares and Vanguard, who command an enormous 36.84% and 26.24% of the market share, respectively. It was Vanguard that gathered the most in overall weekly inflows, pulling in $2.28 billion, while SPDR experienced the steepest withdrawals, facing -$1.31 billion in net outflows.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iShares 87 $808.42B 36.84%
Vanguard 30 $575.90B 26.24%
SPDR 38 $170.83B 7.78%
JPMorgan 19 $84.78B 3.86%
Schwab 12 $73.49B 3.35%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
Vanguard $2,282M
iShares $1,891M
PGIM $659M
Outflows
SPDR -$1,305M
WisdomTree -$722M
PIMCO -$224M

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.