Specialty Fixed Income Update: Defined Maturity Funds Drive $562M in Weekly Inflows

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Weekly Channel Summary

The FI: Specialty ETF channel continues to show significant scale, currently housing 127 ETFs with a total of $66B in assets under management across 15 distinct issuers. Investor interest remains robust, as evidenced by a steady stream of capital entering the space. Over the past five days, the channel captured $0.56B in net new money, contributing to a Year-to-Date (YTD) flow total of $1.57B. This momentum builds upon a strong preceding year, during which the channel attracted an impressive $22.46B in total inflows.

This Week’s Performance Leaders and Laggards

Performance across specialty fixed income categories was mixed this week. The “Fixed Income: Specialty – Interest Rate Volatility” category led the group with a Week-to-Date (WTD) return of 0.26%, though it remains largely flat on a Year-to-Date basis at 0.09%. Conversely, “Fixed Income: Specialty – Maturing Ladder” trailed the pack, posting a WTD decline of -0.08%, despite maintaining a positive YTD performance of 0.27%. The “Specialty – Defined Maturity” segment remained nearly unchanged for the week at -0.01%.

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Specialty – Interest Rate Volatility 0.26% -0.57% -0.17% -3.20% 0.09% -2.05%
Specialty – Defined Maturity -0.01% 0.46% 0.60% 3.61% 0.24% 6.75%
Specialty – Maturing Ladder -0.08% 0.34% -0.74% 3.90% 0.27% 5.71%

Top & Bottom 5 ETFs by Weekly Performance

At the individual fund level, the HYKE (Vest 2 Year Interest Rate Hedge ETF) secured the top spot with a 1.41% return. On the other end of the spectrum, the IVOL (KraneShares Quadratic Interest Rate Volatility and Inflation Hedge ETF) and RFIX (Simplify Bond Bull ETF) were the week’s laggards, posting returns of -0.53% and -0.51%, respectively.

Ticker Fund Name WTD Performance
Top Performers
HYKE Vest 2 Year Interest Rate Hedge ETF 1.41%
RYSE Vest 10 Year Interest Rate Hedge ETF 1.38%
PFIX Simplify Interest Rate Hedge ETF 0.71%
RISR FolioBeyond Alternative Income and Interest Rate Hedge ETF 0.32%
RINF ProShares Inflation Expectations ETF 0.27%
Bottom Performers
IVOL KraneShares Quadratic Interest Rate Volatility and Inflation Hedge ETF -0.53%
RFIX Simplify Bond Bull ETF -0.51%
IBTQ iShares iBonds Dec 2035 Term Treasury ETF -0.39%
IBTP iShares iBonds Dec 2034 Term Treasury ETF -0.38%
IBTO iShares iBonds Dec 2033 Term Treasury ETF -0.36%

Analyzing the Weekly Flows

The channel recorded a total net inflow of $562M this week. The “Specialty – Defined Maturity” category dominated the flow landscape, bringing in $565M, which supports its massive $65.0B AUM base. In contrast, “Fixed Income: Specialty – Maturing Ladder” saw the largest divestment, with -$2M in weekly outflows.

Category Flows Summary

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Specialty – Defined Maturity 91 $65.0B $565M $4,109M $8,182M $1,573M $22,497M
Specialty – Interest Rate Volatility 10 $0.9B ($1M) ($84M) $51M ($9M) $125M
Fixed Income: Specialty – Maturing Ladder 20 $0.1B ($2M) $0M ($49M) ($1M) ($168M)

Top & Bottom 5 ETFs by 5-Day Flow

The IBTI (iShares iBonds Dec 2028 Term Treasury ETF) led all funds with $48M in new assets. Conversely, BSCQ (Invesco BulletShares 2026 Corporate Bond ETF) and IVOL (KraneShares Quadratic Interest Rate Volatility and Inflation Hedge ETF) experienced the largest outflows of the week, losing $12M and $8M, respectively.

Ticker Fund Name 5-Day Flow
Inflows
IBTI iShares iBonds Dec 2028 Term Treasury ETF $48M
IBDU iShares iBonds Dec 2029 Term Corporate ETF $45M
IBDV iShares iBonds Dec 2030 Term Corporate ETF $43M
IBDS iShares iBonds Dec 2027 Term Corporate ETF $34M
BSCS Invesco BulletShares 2028 Corporate Bond ETF $34M
Outflows
BSCQ Invesco BulletShares 2026 Corporate Bond ETF ($12M)
IVOL KraneShares Quadratic Interest Rate Volatility and Inflation Hedge ETF ($8M)
IBHG iShares iBonds 2027 Term High Yield and Income ETF ($8M)
BSJQ Invesco BulletShares 2026 High Yield Corp Bond ETF ($7M)
IBTG iShares iBonds Dec 2026 Term Treasury ETF ($3M)

Issuer League Table Update

The specialty fixed income landscape is highly concentrated, with iShares and Invesco together accounting for nearly 98% of the total market share. iShares led the weekly inflow race, gathering $384M in net new assets, followed by Invesco with $173M. On the downside, Quadratic and Stone Ridge saw the largest weekly outflows, losing $8M and $2M respectively.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iShares 47 $38.21B 57.81%
Invesco 28 $26.55B 40.17%
Quadratic 1 $0.48B 0.72%
Simplify 2 $0.24B 0.37%
FolioBeyond 1 $0.18B 0.28%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
iShares $384M
Invesco $173M
State Street $9M
Outflows
Quadratic ($8M)
Stone Ridge ($2M)
KraneShares $0M

For a deeper dive into these trends, access our FREE, in-depth FI: Specialty 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.