Steady Demand for Specialty Fixed Income: YTD Flows Surpass $20B Milestone

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Weekly Channel Summary

The FI: Specialty ETF channel currently manages approximately $62.4B in total assets across 121 ETFs from 14 distinct issuers. This segment remains a significant area of focus for investors seeking targeted fixed income exposure, particularly through defined maturity products. Flow activity remained robust over the past week, with the channel attracting $646M in net new money. This contributes to a substantial Year-to-Date (YTD) inflow total of $20.24B and a trailing 1-year flow figure of $21.62B, highlighting the sustained demand for specialty bond strategies throughout the year.

This Week’s Performance Leaders and Laggards

Performance across specialty fixed income categories was mixed this week. The “Fixed Income: Specialty – Defined Maturity” category led the group with a Week-to-Date (WTD) return of 0.21%, maintaining its strong YTD position at 6.32%. Conversely, the “Fixed Income: Specialty – Interest Rate Volatility” category was the primary laggard, declining -0.59% for the week, which further pressured its YTD performance to -1.15%.

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Fixed Income: Specialty – Defined Maturity 0.21% 0.55% 0.82% 3.85% 6.32% 6.67%
Fixed Income: Specialty – Maturing Ladder 0.20% -0.23% -0.06% 3.20% 5.35% 5.26%
Fixed Income: Specialty – Interest Rate Volatility -0.59% -0.40% 0.28% -2.43% -1.15% -0.84%

Top & Bottom 5 ETFs by Weekly Performance

Leading the individual ETF ranks this week was the iShares iBonds Dec 2044 Term Treasury ETF (IBGA) with a 0.56% return. Conversely, the Simplify Bond Bull ETF (RFIX) struggled significantly, dropping -2.45%. The Simplify Interest Rate Hedge ETF (PFIX) also faced headwinds, ending the week down -1.28%.

Ticker Fund Name WTD Performance
Top Performers
IBGA iShares iBonds Dec 2044 Term Treasury ETF 0.56%
IBGK iShares iBonds Dec 2054 Term Treasury ETF 0.53%
LFDR LifeX Durable Income ETF 0.50%
LFBE LifeX 2065 Longevity Income ETF 0.50%
LFAW LifeX 2060 Longevity Income ETF 0.49%
Bottom Performers
RFIX Simplify Bond Bull ETF -2.45%
PFIX Simplify Interest Rate Hedge ETF -1.28%
HYKE Vest 2 Year Interest Rate Hedge ETF -0.88%
RINF ProShares Inflation Expectations ETF -0.50%
RYSE Vest 10 Year Interest Rate Hedge ETF -0.37%

Analyzing the Weekly Flows

The FI: Specialty channel saw total net inflows of $646M this week. The “Specialty Defined Maturity” category continues to be the primary engine of growth, capturing $581M in weekly flows, bringing its total AUM to $61.3B. Meanwhile, the “Specialty – Interest Rate Volatility” category added $64M, while the “Fixed Income: Specialty – Maturing Ladder” category saw a marginal gain of $1M.

Category Flows Summary

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Specialty Defined Maturity 91 $61.3B $581M $2,522M $6,131M $19,912M $21,288M
Specialty – Interest Rate Volatility 10 $1.0B $64M $109M $85M $244M $247M
Fixed Income: Specialty – Maturing Ladder 20 $0.1B $1M ($14M) ($135M) $87M $88M

Top & Bottom 5 ETFs by 5-Day Flow

The iShares iBonds Dec 2032 Term Corporate ETF (IBDX) led all specialty ETFs with $71M in new money. Outflows were relatively light across the channel, with the Invesco BulletShares 2026 Corporate Bond ETF (BSCQ) seeing the largest redemption at ($3M), followed by the iShares iBonds Dec 2026 Term Treasury ETF (IBTG) at ($2M).

Ticker Fund Name 5-Day Flow
Inflows
IBDX iShares iBonds Dec 2032 Term Corporate ETF $71M
IVOL KraneShares Quadratic Interest Rate Volatility and Inflation Hedge ETF $66M
BSCV Invesco BulletShares 2031 Corporate Bond ETF $55M
BSCU Invesco BulletShares 2030 Corporate Bond ETF $46M
BSCW Invesco BulletShares 2032 Corporate Bond ETF $38M
Outflows
BSCQ Invesco BulletShares 2026 Corporate Bond ETF ($3M)
IBTG iShares iBonds Dec 2026 Term Treasury ETF ($2M)
RISR FolioBeyond Alternative Income and Interest Rate Hedge ETF ($2M)
IRVH Global X Interest Rate Volatility & Inflation Hedge ETF $0M
LFDR LifeX Durable Income ETF $0M

Issuer League Table Update

The issuer landscape is dominated by iShares and Invesco, who together control over 97% of the total specialty market share. iShares remains the top issuer by AUM with $35.53B and also led in weekly gathering with $321M. Invesco followed closely, adding $258M to its $25.48B asset base. Quadratic also saw notable activity, capturing $66M this week, while FolioBeyond experienced the largest weekly outflow among issuers at -$2M.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iShares 47 $35.53B 56.92%
Invesco 28 $25.48B 40.83%
Quadratic 1 $0.55B 0.87%
Simplify 2 $0.26B 0.42%
SPDR 16 $0.24B 0.39%

Top & Bottom 3 Issuers by Weekly Flows

Brand 5-Day Flow
Inflows
iShares $321M
Invesco $258M
Quadratic $66M
Outflows
FolioBeyond -$2M
Global X $0M
American Beacon $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.