The Core Enhanced taxable fixed income category serves as a foundational, yet dynamic, component for investors seeking more than just traditional bond market returns. These funds typically invest in a broad array of U.S. dollar-denominated, investment-grade debt, including government and corporate bonds, but add an “enhanced” element by strategically allocating to higher-yielding sectors like high-yield corporates, emerging market debt, or securitized products. This approach aims to boost income and total return potential beyond standard benchmarks, making it a suitable core holding for those with a slightly higher risk tolerance who are looking for a blend of stability and growth from their fixed-income allocation.
Summary (as of 7/31/2025)
- Number of Funds: 50
- Total Assets Under Management (AUM): $97.6B
- Average Expense Ratio: 0.45%
- 1-Month Net Flows: $1.90B
- 1-Year Net Flows: $62.68B
The Core Enhanced taxable fixed income category is a significant space, commanding nearly $100 billion in assets across 50 different funds. The strong positive net flows over both the last month and the past year indicate robust and sustained investor interest. This suggests that in the current market environment, investors are actively seeking strategies that offer the potential for higher income without straying too far from the core of their fixed-income portfolios.
Performance Snapshot (as of 7/31/2025)
Performance within the Core Enhanced category reveals a wide dispersion of outcomes, underscoring the importance of diligent fund selection. While the category’s average 1-month return was -0.16%, the top-performing fund, SJCP (SanJac Alpha Core Plus Bond ETF), posted a gain of 0.62%. In stark contrast, the bottom-performing fund, WBND (Western Asset Total Return ETF), experienced a loss of -0.64% over the same period. This creates a total performance spread of 1.26% between the best and worst performers in just a single month, highlighting that the specific strategy and holdings of an ETF can lead to dramatically different results for investors.
Drill Down: A Glimpse into the Full Report
The summary data only scratches the surface. Our in-depth report reveals critical insights that can help you make more informed decisions. Here are a few key takeaways:
- Structure & Market Share: Discover how concentrated this category is, with the top 10 funds controlling a remarkable portion of the total assets.
- Flows & Investor Sentiment: While the category saw significant inflows last month, some major funds experienced significant outflows. See which strategies investors are moving towards and away from.
- Risk-Adjusted Returns: The full report identifies funds like the FIBR (iShares U.S. Fixed Income Balanced Risk Systematic E..), which has delivered a top-decile Sharpe Ratio of 0.94 over the last three years.
- Portfolio Composition: Understand what you truly own. The average fund in this category has a 33.6% allocation to the Corporate sector.
- Fundamentals: Pinpoint funds that align with your investment style. Whether you’re seeking higher Yield or better Credit Quality, our report scores every fund, highlighting top-rated ETFs in each dimension.
Call to Action
This is just a glimpse of the data available in our full report. By creating a free account, you can access the complete Fixed Income: Taxable – Core Enhanced report and unlock all of these insights.
ETF category data is updated daily in the Home Office section of the ETF Action platform. Monthly summary PDFs (available to DIY subscribers and up) and in-depth excel data packs (available to Advisor Pro subscribers and up) are available on over 100 ETF categories.
Disclosure: This category snapshot was prepared with the assistance of artificial intelligence.
