Bloomberg Fixed-Income ETF Tracker

Corporate Bond ETFs Get Inflows, Treasury ETFs Get Cold Shoulder

Yield-hungry investors poured money into fixed-income ETFs to close out the third quarter, with some of the top gains coming in corporate-bond funds.

With talk of tax reform swirling around Washington again, U.S. corporate-bond ETFs posted leading net inflows in the two weeks ended Oct. 4, while Treasury ETFs lost assets as investors sought better returns elsewhere. Long-term bond funds, too, had outflows as investors lost some of their appetite for interest-rate risk and cut back on bets with higher durations.

Among the corporate bond funds, high yield attracted $1.6 billion in cash, equal to 2.8 percent of assets under management, while $2.3 billion went into high grade funds, about 1.7 percent of AUM. Almost $540 million fled U.S. Treasury ETFs. 

For the year so far, U.S. Treasury ETF inflows are $15.6 billion, or 23 percent of total assets under management. U.S. high grade corporate ETFs drew a net $33 billion, or 24 percent of AUM, while $5.6 billion joined U.S. corporate junk ETFs, about 10 percent of AUM.

Bloomberg’s Fixed-Income ETF tracker monitors fund flows and assets under management to provide a monthly gauge of investor sentiment.

Fixed-Income ETF Flows

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