Government Long Bonds and Multi-Sector Strategies Lead Taxable ETF Growth

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Weekly Channel Summary

The taxable fixed income ETF channel remains a massive pillar of the market, ending the week with approximately $2.017 trillion in total Assets Under Management (AUM) across 655 ETFs and 136 unique issuers. Flow activity continues to show robust momentum; the channel attracted $9.46 billion in net new money this past week, bringing Year-to-Date (YTD) inflows to an impressive $369.19 billion. Over the past year, investors have allocated a total of $370.75 billion to the space, underscoring a sustained preference for taxable bond strategies in the current interest rate environment.

This Week’s Performance Leaders and Laggards

Fixed income performance was generally positive this week, led by the Government Long category which returned 0.53% Week-to-Date (WTD). Other strong performers included Long-Term bonds and Emerging USD debt. Conversely, the International segment was the primary laggard, posting a WTD return of -0.21%. Despite the slight weekly dip for international bonds, the category remains a top performer for the year with a YTD return of 10.98%, while Government Long bonds have returned 5.49% over the same period.

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Government Long 0.53% -0.69% -0.09% 3.91% 5.49% 5.22%
Long-Term 0.40% 0.30% -0.07% 5.19% 7.54% 7.48%
Emerging USD 0.36% 0.87% 2.67% 8.16% 12.31% 12.33%
Securitized 0.35% 0.66% 1.35% 4.60% 7.82% 8.15%
Core 0.33% 0.45% 0.90% 4.11% 7.03% 7.25%
Core Enhanced 0.33% 0.51% 0.88% 4.32% 7.30% 7.52%
Government Intermediate 0.32% 0.32% 0.85% 3.59% 7.24% 7.55%
Emerging 0.30% 1.02% 1.94% 6.52% 13.43% 13.43%
Corporate 0.28% 0.59% 0.50% 4.35% 7.57% 7.78%
Multisector Taxable 0.27% 0.75% 0.81% 4.17% 6.89% 7.22%
Preferred Stock 0.26% 1.34% -0.23% 5.62% 6.40% 6.44%
High Yield 0.20% 1.14% 0.72% 4.49% 7.86% 8.21%
Short-Term 0.20% 0.56% 1.04% 3.25% 6.15% 6.43%
Government Short 0.18% 0.47% 1.00% 2.70% 5.29% 5.58%
Convertible 0.16% 2.44% -1.39% 9.85% 22.36% 21.57%
Ultrashort 0.11% 0.47% 1.15% 2.76% 5.06% 5.26%
Government Ultrashort 0.08% 0.39% 1.00% 2.14% 4.11% 4.29%
International USD 0.05% -0.21% 0.42% 1.22% 2.98% 3.08%
Bank Loans 0.04% 0.70% 0.73% 2.79% 4.89% 5.24%
Inflation Protected 0.02% -0.04% -0.19% 2.80% 6.60% 6.93%
International -0.21% 1.01% -0.37% 1.33% 10.98% 10.81%

Top & Bottom 5 ETFs by Weekly Performance

At the individual fund level, the CVRT (Calamos Convertible Equity Alternative ETF) was the top performer this week with a gain of 1.36%. Conversely, the most significant weekly laggards were the DADS (Digital Asset Debt Strategy ETF) and VPC (Virtus Private Credit Strategy ETF), which dropped -1.77% and -1.31%, respectively.

Ticker Fund Name WTD Performance
Top Performers
CVRT Calamos Convertible Equity Alternative ETF 1.36%
TYA Simplify Intermediate Term Treasury Futures Strategy ETF 0.89%
CRDT Simplify Opportunistic Income ETF 0.79%
AGGH Simplify Aggregate Bond ETF 0.64%
EDV Vanguard Extended Duration Treasury ETF 0.60%
Bottom Performers
DADS Digital Asset Debt Strategy ETF -1.77%
VPC Virtus Private Credit Strategy ETF -1.31%
BMAX REX Bitcoin Corporate Treasury Convertible Bond ETF -1.17%
BWX SPDR Bloomberg International Treasury Bond ETF -0.37%
FXED Sound Enhanced Fixed Income ETF -0.37%

Analyzing the Weekly Flows

The taxable ETF channel generated $9.46 billion in total net inflows this week. Analysis by exposure reveals that the Multi-Sector segment led the way for inflows, followed by Government and Corporate bonds. By credit quality, Investment Grade strategies were the clear favorite among investors, while Duration Intermediate funds gathered the most assets relative to other maturities. On the negative side, the FI: Bank Loans segment was the largest laggard, experiencing weekly outflows of $183 million.

Flows by Segment

Segment Fund Count AUM 5 Day Flow 30 Day Flow 90 Day Flow YTD Flow 1 Year Flow
FI: Multi-Sector 269 $831.1B $5,478M $20,366M $59,891M $176,768M $181,613M
FI: Government 115 $613.2B $2,011M $10,212M $37,736M $115,876M $116,755M
FI: Corporate 164 $374.4B $1,736M $5,448M $19,857M $45,475M $40,945M
FI: Securitized 37 $101.4B $348M $788M $303M $17,696M $17,867M
FI: Preferred Stock 24 $39.9B $67M $221M $772M $1,998M $2,029M
FI: Cat Bonds 1 $0.0B $2M $10M $18M $29M $29M
FI: Bank Loans 36 $57.2B ($183M) ($172M) ($202M) $11,350M $11,514M

Flows by Credit Type

Credit Type Fund Count AUM 5 Day Flow 30 Day Flow 90 Day Flow YTD Flow 1 Year Flow
Credit: Investment Grade 334 $1,614.1B $5,863M $21,246M $83,699M $279,276M $281,956M
Credit: Blend 161 $216.5B $2,145M $9,670M $24,778M $63,599M $63,945M
Credit: High Yield 150 $186.5B $1,446M $5,938M $9,791M $26,210M $24,745M

Flows by Duration

Duration Fund Count AUM 5 Day Flow 30 Day Flow 90 Day Flow YTD Flow 1 Year Flow
Duration: Intermediate 387 $1,175.6B $7,066M $25,622M $76,178M $210,979M $209,517M
Duration: Short 82 $266.2B $1,134M $3,525M $13,636M $40,067M $41,701M
Duration: Ultrashort 120 $379.6B $1,045M $7,187M $18,872M $104,421M $108,580M
Duration: Long 56 $195.7B $210M $520M $9,582M $13,619M $10,848M

Top & Bottom 5 ETFs by 5-Day Flow

Individual fund flow activity was headlined by the JBND (JPMorgan Active Bond ETF), which saw the largest net inflow of $952 million over the past five days. In contrast, heavy selling was concentrated in long-duration Treasuries and investment grade corporates, with the TLT (iShares 20+ Year Treasury Bond ETF) and LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) losing -$631 million and -$509 million, respectively.

Ticker Fund Name 5-Day Flow
Inflows
JBND JPMorgan Active Bond ETF $952M
HYG iShares iBoxx $ High Yield Corporate Bond ETF $780M
SGOV iShares 0-3 Month Treasury Bond ETF $684M
BND Vanguard Total Bond Market ETF $578M
IEF iShares 7-10 Year Treasury Bond ETF $520M
Outflows
TLT iShares 20+ Year Treasury Bond ETF ($631M)
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF ($509M)
SRLN State Street Blackstone Senior Loan ETF ($302M)
JAAA Janus Henderson AAA CLO ETF ($182M)
BBAG JPMorgan BetaBuilders U.S. Aggregate Bond ETF ($123M)

Issuer League Table Update

The issuer landscape is dominated by iShares and Vanguard, which combined control nearly 65% of the total market share for taxable ETFs. This past week, Vanguard outpaced all other brands with $2.58 billion in weekly inflows. Among the top-tier issuers, Janus Henderson saw the most significant net outflows, with investors pulling $157 million from the brand’s products during the period.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iShares 83 $769.13B 38.12%
Vanguard 29 $535.74B 26.56%
SPDR 39 $163.06B 8.08%
JPMorgan 18 $74.85B 3.71%
Schwab 12 $69.29B 3.43%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
Vanguard $2,579M
iShares $1,616M
JPMorgan $1,266M
Outflows
Transamerica ($2,211M)
Janus Henderson ($157M)
WisdomTree ($65M)

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.