Taxable FI Recap: Convertibles Lead While High Yield Bleeds

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Weekly Channel Summary

Over the past week, the Taxable Fixed Income ETF channel, comprising 685 ETFs across 143 issuers, reached $2,229B in total assets under management (AUM). The space saw robust activity with $14.70B in 5-day net inflows. This pushes 30-day flows to $48.89B and year-to-date (YTD) flows to an impressive $223.28B, tracking closely to the staggering $472.54B seen over the past year.

This Week’s Performance Leaders and Laggards

Convertible ETFs led the channel this week, posting a 1.08% Week-to-Date (WTD) return and remaining the strongest category on a YTD basis (up 19.64%). Government Long and Long-Term funds also performed well, up 0.94% and 0.84%, respectively. Conversely, Inflation Protected ETFs lagged as the worst performer for the week at -0.20%, though they are still holding onto a 1.14% YTD gain. Preferred Stock and Bank Loans also slipped slightly into negative territory for the week.

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Convertible 1.08% 4.38% 11.80% 23.98% 19.64% 39.36%
Government Long 0.94% -2.23% -4.35% -3.44% -2.08% 4.46%
Long-Term 0.84% -1.31% -2.72% -0.75% -0.70% 7.92%
International USD 0.63% -0.12% -0.61% 0.53% 0.55% 3.04%
International 0.43% -0.75% -1.97% 1.64% -0.17% 3.90%
Corporate 0.38% -0.66% -1.16% 0.43% 0.03% 6.34%
Core Enhanced 0.34% -0.81% -1.34% 0.30% 0.00% 5.85%
Core 0.33% -0.85% -1.46% -0.04% -0.21% 5.37%
Multisector Taxable 0.27% -0.43% -0.74% 1.25% 0.51% 6.11%
High Yield 0.27% -0.01% 0.35% 2.69% 1.32% 7.40%
Securitized 0.25% -0.56% -0.80% 1.01% 0.52% 6.42%
Government Intermediate 0.18% -1.15% -2.02% -1.10% -1.02% 3.49%
Emerging 0.15% -0.94% -0.97% 2.98% 1.17% 9.93%
Ultrashort 0.09% 0.41% 0.93% 2.14% 1.57% 4.97%
Short-Term 0.09% -0.20% -0.20% 1.08% 0.56% 4.65%
Government Ultrashort 0.08% 0.31% 0.86% 1.83% 1.37% 3.96%
Emerging USD 0.07% -0.84% -0.85% 2.23% 1.04% 11.09%
Government Short 0.03% -0.33% -0.36% 0.47% 0.13% 3.41%
Bank Loans -0.04% 0.58% 1.24% 1.73% 0.80% 4.55%
Preferred Stock -0.11% -0.32% -0.63% 2.91% 1.33% 8.38%
Inflation Protected -0.20% -0.20% 0.16% 0.96% 1.14% 4.71%

Top & Bottom 5 ETFs by Weekly Performance

The standout single ETF for the week was the GOVZ (iShares 25+ Year Treasury STRIPS Bond ETF), jumping 2.14%. On the other end of the spectrum, the VPC (Virtus Private Credit Strategy ETF) struggled the most, tumbling -1.85%, closely followed by the TFFI (Chesapeake Trend-Following Fixed Income ETF), which declined -1.14%.

Ticker Fund Name WTD Performance
Top Performers
GOVZ iShares 25+ Year Treasury STRIPS Bond ETF 2.14%
ZROZ PIMCO 25+ Year Zero Coupon US Treasury Index Exchange-Traded Fund 2.02%
EDV Vanguard Extended Duration Treasury ETF 1.83%
MCVT Miller Convertible Total Return ETF 1.77%
TLT iShares 20+ Year Treasury Bond ETF 1.16%
Bottom Performers
VPC Virtus Private Credit Strategy ETF -1.85%
TFFI Chesapeake Trend-Following Fixed Income ETF -1.14%
PFFA Virtus InfraCap U.S. Preferred Stock ETF -0.78%
EPRF Innovator S&P Investment Grade Preferred ETF -0.75%
PFFR InfraCap REIT Preferred ETF -0.71%

Analyzing the Weekly Flows

The Taxable Fixed Income channel gathered $14.70B overall this past week. The FI: Multi-Sector segment narrowly edged out FI: Government to take the top spot for inflows, pulling in $7,154M. Looking at credit types, Investment Grade completely dominated with $13,990M in net new assets. Meanwhile, across the duration spectrum, Ultrashort funds captured the most capital at $5,616M. On the outflow side, High Yield credit saw the heaviest withdrawals across groups, shedding $658M over the 5-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 $925.9B $7,154M $24,504M $53,256M $96,867M $223,065M
FI: Government 121 $698.8B $7,071M $15,528M $53,095M $89,014M $154,018M
FI: Securitized 42 $105.7B $602M $1,302M $3,073M $4,864M $16,121M
FI: Bank Loans 44 $65.0B $496M $2,666M $3,161M $7,469M $15,249M
FI: Cat Bonds 1 $0.1B $0M $7M $35M $46M $72M
FI: Preferred Stock 27 $40.6B -$42M $690M $640M $1,000M $2,949M
FI: Corporate 155 $392.5B -$583M $4,177M $11,602M $23,996M $61,051M

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 $1,790.6B $13,990M $36,474M $106,354M $185,797M $362,610M
Credit: Blend 176 $250.2B $1,331M $7,172M $17,086M $34,309M $83,266M
Specialty: Interest Rate Volatility 1 $0.1B $30M $33M $35M $35M $35M
Credit: High Yield 145 $187.4B -$658M $5,170M $1,347M $3,064M $26,455M

Flows by Duration

Duration Fund Count AUM 5 Day Flow 30 Day Flow 90 Day Flow YTD Flow 1 Year Flow
Duration: Ultrashort 137 $465.5B $5,616M $14,303M $45,894M $82,801M $134,897M
Duration: Intermediate 399 $1,274.9B $5,584M $22,949M $58,179M $110,403M $271,200M
Duration: Short 86 $295.3B $2,460M $7,420M $17,247M $27,616M $55,918M
Duration: Long 58 $192.7B $1,033M $4,178M $3,503M $2,385M $10,352M

Top & Bottom 5 ETFs by 5-Day Flow

The SGOV (iShares 0-3 Month Treasury Bond ETF) was a massive winner, raking in a staggering $2,298M in just 5 days. Conversely, investors heavily rotated out of the HYG (iShares iBoxx $ High Yield Corporate Bond ETF), which led outflows with a $859M withdrawal, followed by a $523M exodus from the VCIT (Vanguard Intermediate-Term Corporate Bond ETF).

Ticker Fund Name 5-Day Flow
Inflows
SGOV iShares 0-3 Month Treasury Bond ETF $2,298M
BND Vanguard Total Bond Market ETF $1,898M
BNDX Vanguard Total International Bond ETF $1,150M
TLT iShares 20+ Year Treasury Bond ETF $725M
VTIP Vanguard Short-Term Inflation-Protected Securities ETF $586M
Outflows
HYG iShares iBoxx $ High Yield Corporate Bond ETF -$859M
VCIT Vanguard Intermediate-Term Corporate Bond ETF -$523M
TIP iShares TIPS Bond ETF -$177M
SCHQ Schwab Long-Term U.S. Treasury ETF -$142M
IEI iShares 3-7 Year Treasury Bond ETF -$140M

Issuer League Table Update

The Taxable Fixed Income landscape remains heavily concentrated at the top, with iShares (36.50%) and Vanguard (26.38%) commanding the lion’s share of AUM. iShares also led the weekly flows battle, absorbing $4,863M, while Vanguard closely followed with $4,419M. On the other end, Simplify recorded the largest weekly outflow among issuers, shedding $118M.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iShares 88 $813.47B 36.50%
Vanguard 30 $587.98B 26.38%
SPDR 37 $170.63B 7.66%
JPMorgan 19 $87.52B 3.93%
Schwab 12 $75.46B 3.39%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
iShares $4,863M
Vanguard $4,419M
SPDR $793M
Outflows
Simplify -$118M
Xtrackers -$47M
Invesco -$21M

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.