Flight to Short-Duration: Taxable Bond ETFs Gather $14B Amid Long-Term Struggles

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Weekly Channel Summary

The Taxable Fixed Income ETF channel currently commands a total of $2,220B in Assets Under Management (AUM), distributed across 692 ETFs from 144 unique issuers. Over the past five days, the channel experienced significant momentum, attracting $14.13B in net inflows. This weekly surge bolsters a highly successful period for the channel, pushing Year-to-Date (YTD) flows to $208.54B and bringing 1-Year net flows to an impressive $468.89B.

This Week’s Performance Leaders and Laggards

Performance across the fixed income landscape was largely challenged this week, with Government Ultrashort and Ultrashort ETFs acting as the sole safe havens, returning a positive 0.06% and 0.05% Week-to-Date (WTD), respectively. Both categories also maintain positive Year-to-Date trajectories. On the flip side, Government Long strategies suffered the steepest weekly decline, falling 2.70% WTD, which further dragged its YTD performance down to -2.99%.

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Government Ultrashort 0.06% 0.31% 0.84% 1.83% 1.29% 3.97%
Ultrashort 0.05% 0.41% 0.88% 2.12% 1.45% 4.91%
Bank Loans -0.02% 1.07% 1.04% 1.67% 0.84% 4.66%
Convertible -0.30% 5.29% 11.22% 20.59% 18.52% 36.93%
Short-Term -0.35% -0.24% -0.30% 1.25% 0.47% 4.59%
Government Short -0.36% -0.35% -0.45% 0.75% 0.10% 3.40%
Inflation Protected -0.42% 0.00% 0.27% 1.29% 1.34% 4.75%
High Yield -0.48% -0.15% 0.20% 2.37% 1.03% 6.91%
Preferred Stock -0.73% 0.04% -0.22% 2.42% 1.46% 7.88%
International USD -0.79% -0.61% -1.04% 0.01% -0.07% 2.05%
Multisector Taxable -0.81% -0.60% -1.02% 1.15% 0.24% 5.47%
Securitized -0.86% -0.77% -1.08% 1.13% 0.28% 5.74%
Corporate -0.96% -0.99% -1.53% 0.43% -0.35% 5.57%
Core -1.08% -1.19% -1.83% 0.07% -0.54% 4.57%
Core Enhanced -1.08% -1.12% -1.71% 0.34% -0.34% 5.02%
Government Intermediate -1.12% -1.38% -2.35% -0.71% -1.21% 3.05%
Emerging -1.14% -0.96% -1.12% 2.52% 1.04% 10.02%
Emerging USD -1.17% -0.69% -0.86% 2.19% 0.98% 10.73%
International -1.82% -1.46% -2.77% 0.39% -0.60% 4.02%
Long-Term -1.84% -2.14% -3.57% -1.05% -1.53% 5.81%
Government Long -2.70% -3.24% -5.49% -3.61% -2.99% 1.69%

Top & Bottom 5 ETFs by Weekly Performance

Looking at individual funds, the TFFI (Chesapeake Trend-Following Fixed Income ETF) led the pack with a 1.92% gain. At the bottom, long-duration zero-coupon bonds suffered the most, with GOVZ (iShares 25+ Year Treasury STRIPS Bond ETF) and ZROZ (PIMCO 25+ Year Zero Coupon US Treasury Index Exchange-Traded Fund) both dropping 4.33%.

Ticker Fund Name WTD Performance
Top Performers
TFFI Chesapeake Trend-Following Fixed Income ETF 1.92%
PCPI PIMCO Inflation PLUS Active ETF 0.54%
ICVT iShares Convertible Bond ETF 0.33%
ICPI iShares 0-1 Year TIPS Bond ETF 0.33%
RBIL F/m Ultrashort Treasury Inflation-Protected Security (TIPS) ETF 0.33%
Bottom Performers
GOVZ iShares 25+ Year Treasury STRIPS Bond ETF -4.33%
ZROZ PIMCO 25+ Year Zero Coupon US Treasury Index Exchange-Traded Fund -4.33%
TYA Simplify Intermediate Term Treasury Futures Strategy ETF -4.19%
EDV Vanguard Extended Duration Treasury ETF -4.09%
XTWY BondBloxx Bloomberg Twenty Year Target Duration US Treasury ETF -3.29%

Analyzing the Weekly Flows

The channel gathered a robust $14.13B in net new money this week. The Multi-Sector segment was the top draw, adding $5,605M to its asset base, while Investment Grade dominated the credit landscape with $10,266M in inflows. From a duration standpoint, Intermediate strategies saw immense popularity, bringing in $8,407M over the five-day period.

Flows by Segment

Segment Fund Count AUM 5 Day Flow 30 Day Flow 90 Day Flow YTD Flow 1 Year Flow
FI: Multi-Sector 291 $921.0B $5,605M $20,120M $50,916M $89,694M $220,225M
FI: Corporate 155 $394.2B $3,652M $7,552M $13,467M $24,570M $63,384M
FI: Government 121 $693.6B $3,597M $6,423M $66,926M $81,941M $151,180M
FI: Bank Loans 44 $64.5B $649M $2,998M $2,837M $6,973M $15,274M
FI: Preferred Stock 27 $41.2B $334M $790M $969M $1,041M $2,969M
FI: Securitized 42 $105.5B $293M $924M $2,787M $4,257M $15,770M

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 358 $1,780.8B $10,266M $23,996M $117,812M $171,800M $358,190M
Credit: Blend 176 $249.9B $1,993M $7,286M $18,081M $32,953M $82,676M
Credit: High Yield 145 $189.1B $1,862M $7,508M $2,003M $3,716M $27,848M
Specialty: Interest Rate Volatility 1 $0.0B $3M $3M $5M $5M $5M

Flows by Duration

Duration Fund Count AUM 5 Day Flow 30 Day Flow 90 Day Flow YTD Flow 1 Year Flow
Duration: Intermediate 399 $1,273.7B $8,407M $23,340M $58,432M $104,788M $271,237M
Duration: Ultrashort 137 $459.7B $4,029M $6,614M $60,347M $77,178M $130,202M
Duration: Short 86 $293.2B $1,622M $5,877M $15,701M $25,156M $54,532M
Duration: Long 58 $193.3B $67M $2,962M $3,421M $1,352M $12,748M

Top & Bottom 5 ETFs by 5-Day Flow

The SGOV (iShares 0-3 Month Treasury Bond ETF) was the undisputed flow leader in absolute dollars, securing an impressive $1,623M in new assets. Conversely, IQMM (ProShares GENIUS Money Market ETF) and LQD (iShares iBoxx $ Investment Grade Corporate Bond ETF) saw the heaviest redemptions, losing $454M and $228M, respectively.

Ticker Fund Name 5-Day Flow
Inflows
SGOV iShares 0-3 Month Treasury Bond ETF $1,623M
VCIT Vanguard Intermediate-Term Corporate Bond ETF $1,164M
SCHI Schwab 5-10 Year Corporate Bond ETF $870M
BND Vanguard Total Bond Market ETF $864M
VBIL Vanguard 0-3 Month Treasury Bill ETF $406M
Outflows
IQMM ProShares GENIUS Money Market ETF -$454M
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF -$228M
SPAB State Street SPDR Portfolio Aggregate Bond ETF -$222M
SPTL State Street SPDR Portfolio Long Term Treasury ETF -$219M
TLT iShares 20+ Year Treasury Bond ETF -$122M

Issuer League Table Update

iShares and Vanguard continue to dominate the Taxable Fixed Income space, holding a combined 62.89% market share among brands. Vanguard captured the most assets this week, bringing in an exceptional $4,342M, while ProShares found itself at the bottom of the pile with $432M in net outflows.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iShares 88 $811.14B 36.54%
Vanguard 30 $585.11B 26.35%
SPDR 37 $170.24B 7.67%
JPMorgan 19 $86.95B 3.92%
Schwab 12 $75.27B 3.39%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
Vanguard $4,342M
iShares $3,719M
Schwab $1,301M
Outflows
ProShares -$432M
Janus Henderson -$78M
F/m -$19M

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.