High Yield Shines as Investors Pour Billions into Taxable Fixed-Income ETFs

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Overview

The Taxable Fixed-Income ETF category, which encompasses 623 funds from 130 issuers with a total of $1.875 trillion in Assets Under Management (AUM), experienced a strong week of inflows. High-yield categories led performance, while corporate bond funds were the primary destination for new capital.

Performance

On a week-to-date (WTD) basis, the Taxable Fixed-Income ETF category saw varied returns, with a clear divergence between credit qualities. High-yield funds outperformed, suggesting a risk-on sentiment in the credit markets, while investment-grade corporate bond funds lagged.

Top 3 Performing Categories (WTD):

  • High Yield: +0.31%
  • Government Intermediate: +0.30%
  • Securitized & Inflation Protected (tie): +0.27%

Bottom 3 Performing Categories (WTD):

  • Preferred Stock: -0.42%
  • Long-Term: -0.36%
  • Government Long: -0.26%

Flows (As of 8/28/2025)

The category attracted a total of $8.843 billion in net inflows over the past week. Corporate bond ETFs were the most popular, gathering nearly $2 billion in new assets.

The categories with the largest inflows were:

  • Fixed Income: Taxable – Corporate: +$1.97 billion
  • Fixed Income: Taxable – Core: +$1.46 billion
  • Fixed Income: Taxable – Ultrashort: +$1.39 billion

Conversely, the categories with the largest outflows were:

  • Fixed Income: Taxable – Government Ultrashort: -$429 million
  • Fixed Income: Taxable – Convertible: -$76 million
  • Fixed Income: Taxable – Short-Term: -$12 million

Top 10 ETFs by 5-Day Flows:

  1. LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF): +$1,244M
  2. SCHO (Schwab Short-Term US Treasury ETF): +$617M
  3. JAAA (Janus Henderson AAA CLO ETF): +$579M
  4. AGG (iShares Core U.S. Aggregate Bond ETF): +$477M
  5. BND (Vanguard Total Bond Market ETF): +$465M
  6. IGIB (iShares 5-10 Year Investment Grade Corporate Bond ETF): +$361M
  7. BINC (iShares Flexible Income Active ETF): +$344M
  8. JPST (JPMorgan Ultra-Short Income ETF): +$281M
  9. PYLD (PIMCO Multisector Bond Active Exchange Traded Fund): +$278M
  10. BNDX (Vanguard Total International Bond ETF): +$264M

Bottom 10 ETFs by 5-Day Flows:

  1. IGSB (iShares 1-5 Year Investment Grade Corporate Bond ETF): -$453M
  2. BIL (SPDR Bloomberg 1-3 Month T-Bill ETF): -$266M
  3. TLT (iShares 20+ Year Treasury Bond ETF): -$194M
  4. VGSH (Vanguard Short-Term Treasury ETF): -$155M
  5. USFR (WisdomTree Floating Rate Treasury Fund): -$123M
  6. SPHY (SPDR Portfolio High Yield Bond ETF): -$114M
  7. HYG (iShares iBoxx $ High Yield Corporate Bond ETF): -$106M
  8. SHV (iShares Short Treasury Bond ETF): -$104M
  9. BKLN (Invesco Senior Loan ETF): -$98M
  10. TFLO (iShares Treasury Floating Rate Bond ETF): -$76M

Issuer League Tables

The top issuers by AUM remain the industry leaders: iShares ($721.81B), Vanguard ($500.11B), and SPDR ($159.31B).

Top 3 Issuers by 5-Day Flows:

  1. iShares: +$2,920M
  2. Vanguard: +$1,688M
  3. Schwab: +$1,253M

Bottom 3 Issuers by 5-Day Flows:

  1. SPDR: -$382M
  2. WisdomTree: -$107M
  3. CCM: -$26M

All data sourced from ETF Action’s weekly Fixed Income – Taxable composite reports.

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.

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