Taxable Bond Recap: Investment Grade & Intermediate Duration Drive $7B Week

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Weekly Channel Summary

The Taxable Fixed Income channel closed the week with $2,028B in total assets across 658 ETFs and 136 issuers. The channel maintained positive momentum with $7.22B in net inflows for the week. This activity contributes to a year-to-date total of $1.41B and a robust $381.17B over the trailing one-year period.

This Week’s Performance Leaders and Laggards

Convertible strategies led the channel this week, posting a 0.41% return, followed closely by Preferred Stock at 0.40%. Both categories are in positive territory for the year, with Convertibles up 1.68% YTD. Conversely, the Government Long category was the primary laggard, declining -0.71% for the week and sitting at -0.32% YTD, reflecting sensitivity to shifting interest rate expectations.

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Convertible 0.41% 1.15% -2.36% 6.99% 1.68% 23.09%
Preferred Stock 0.40% 1.16% 0.57% 4.45% 0.45% 5.96%
Bank Loans 0.18% 0.69% 1.18% 2.51% 0.09% 5.28%
High Yield 0.18% 0.65% 1.10% 3.62% 0.05% 8.12%
Emerging 0.13% 1.25% 2.64% 5.66% 0.07% 13.62%
Ultrashort 0.08% 0.43% 1.17% 2.63% 0.04% 5.21%
Government Ultrashort 0.07% 0.36% 1.02% 2.12% 0.03% 4.25%
Government Short 0.03% 0.30% 0.96% 2.40% 0.01% 5.39%
Short-Term 0.03% 0.39% 1.08% 2.90% 0.02% 6.33%
Emerging USD 0.02% 0.66% 2.46% 6.79% -0.06% 12.48%
Multisector Taxable -0.01% 0.34% 0.88% 3.32% 0.02% 6.95%
Inflation Protected -0.06% -0.16% -0.13% 2.07% -0.02% 6.55%
International USD -0.08% -0.18% 0.26% 1.11% -0.16% 3.12%
Securitized -0.11% 0.29% 1.17% 3.71% -0.05% 7.77%
Government Intermediate -0.16% -0.08% 0.57% 2.70% -0.07% 7.08%
Core Enhanced -0.17% 0.05% 0.63% 3.36% -0.07% 7.35%
Core -0.20% -0.02% 0.62% 3.19% -0.08% 7.02%
Corporate -0.26% -0.07% 0.28% 3.17% -0.10% 7.65%
International -0.29% 0.83% 0.22% 0.18% -0.13% 12.05%
Long-Term -0.59% -0.77% -0.80% 3.30% -0.26% 7.32%
Government Long -0.71% -1.39% -1.25% 2.04% -0.32% 4.99%

Top & Bottom 5 ETFs by Weekly Performance

The Digital Asset Debt Strategy ETF (DADS) was the standout performer this week, gaining 1.40%. On the other side, the iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ) and the PIMCO 25+ Year Zero Coupon US Treasury Index Exchange-Traded Fund (ZROZ) struggled, declining 1.59% and 1.55% respectively.

Ticker Fund Name WTD Performance
Top Performers
DADS Digital Asset Debt Strategy ETF 1.40%
VPC Virtus Private Credit Strategy ETF 1.33%
BMAX REX Bitcoin Corporate Treasury Convertible Bond ETF 1.18%
PGF Invesco Financial Preferred ETF 1.00%
PGX Invesco Preferred ETF 0.94%
Bottom Performers
XTWY BondBloxx Bloomberg Twenty Year Target Duration US Treasury ETF -1.00%
EDV Vanguard Extended Duration Treasury ETF -1.27%
DRSK Aptus Defined Risk ETF -1.40%
ZROZ PIMCO 25+ Year Zero Coupon US Treasury Index Exchange-Traded Fund -1.55%
GOVZ iShares 25+ Year Treasury STRIPS Bond ETF -1.59%

Analyzing the Weekly Flows

The channel attracted $7.22B in net inflows this week. Multi-Sector was the dominant segment, pulling in $4.91B. From a credit perspective, Investment Grade was the clear leader with $6.23B in inflows, while High Yield saw modest inflows and Blend strategies gathered just under $1B. In terms of duration, Intermediate-term funds were the most popular, adding $4.77B, while Long-duration funds experienced outflows of $234M.

Flows by Segment

Segment Fund Count AUM 5 Day Flow 30 Day Flow 90 Day Flow YTD Flow 1 Year Flow
FI: Multi-Sector 275 $840.4B $4,909M $22,773M $62,286M $1,862M $187,132M
FI: Government 116 $616.3B $1,666M $8,409M $37,519M ($411M) $120,264M
FI: Bank Loans 37 $57.7B $481M $119M ($513M) $44M $11,895M
FI: Securitized 37 $101.5B $191M $1,326M ($256M) $21M $18,057M
FI: Cat Bonds 1 $0.0B $4M $8M $22M $0M $34M
FI: Preferred Stock 25 $39.8B ($6M) $251M $616M ($30M) $2,039M
FI: Corporate 165 $372.6B ($24M) $2,977M $14,226M ($70M) $43,881M

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 342 $1,624.6B $6,225M $23,658M $83,184M $1,448M $291,547M
Credit: Blend 164 $218.8B $948M $8,492M $23,991M $20M $66,282M
Credit: High Yield 149 $184.8B $47M $3,707M $6,649M ($53M) $25,367M

Flows by Duration

Duration Fund Count AUM 5 Day Flow 30 Day Flow 90 Day Flow YTD Flow 1 Year Flow
Duration: Intermediate 392 $1,182.4B $4,773M $24,914M $71,517M $790M $219,717M
Duration: Ultrashort 123 $383.2B $2,262M $6,241M $20,606M $1,031M $108,128M
Duration: Short 84 $267.4B $418M $3,707M $13,431M ($342M) $41,062M
Duration: Long 56 $195.3B ($234M) $994M $8,271M ($63M) $14,289M

Top & Bottom 5 ETFs by 5-Day Flow

The iShares 0-3 Month Treasury Bond ETF (SGOV) attracted the most capital this week, bringing in over $1.1 billion. On the other end of the spectrum, the iShares 20+ Year Treasury Bond ETF (TLT) saw the largest exodus, shedding $491 million, followed by the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) with $210 million in outflows.

Ticker Fund Name 5-Day Flow
Inflows
SGOV iShares 0-3 Month Treasury Bond ETF $1,139M
AGG iShares Core U.S. Aggregate Bond ETF $700M
BND Vanguard Total Bond Market ETF $527M
BNDX Vanguard Total International Bond ETF $451M
IAGG iShares Core International Aggregate Bond ETF $411M
Outflows
TLT iShares 20+ Year Treasury Bond ETF ($491M)
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF ($210M)
EMB iShares JP Morgan USD Emerging Markets Bond ETF ($193M)
HYG iShares iBoxx $ High Yield Corporate Bond ETF ($177M)
LQDH iShares Interest Rate Hedged Corporate Bond ETF ($149M)

Issuer League Table Update

iShares and Vanguard continue to dominate the landscape, holding nearly 38% and 27% of the market share, respectively. Vanguard led all issuers with $2.11 billion in weekly inflows, while Alpha Architect experienced the most significant outflows for the week.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iShares 84 $770.49B 37.98%
Vanguard 30 $540.55B 26.65%
SPDR 39 $163.32B 8.05%
JPMorgan 19 $75.47B 3.72%
Schwab 12 $69.39B 3.42%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
Vanguard $2,112M
iShares $1,981M
JPMorgan $485M
Outflows
Alpha Architect ($70M)
FundX ($21M)
Kensington ($5M)

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.