Fixed Income ETFs Set New $325 Billion Record

Core Insights - ETFs are projected to surpass the 2024 record of $1.1 trillion in net inflows, with $1.01 trillion already recorded for the year, likely achieving this milestone in November [1] - Fixed income ETFs have reached a new milestone with $325 billion in new money as of October 15, contributing to a total of $303 billion for the year [1] Fixed Income ETFs Performance - The iShares 0-3 Month Treasury Bond ETF (SGOV) is the most popular ETF, adding $29 billion, with a low risk profile and a 30-day SEC yield of 4.1% [2] - Vanguard Total Bond Market ETF (BND) and iShares Core US Aggregate Bond ETF (AGG) are also popular, adding $15 billion and $8.9 billion respectively, both offering low-cost exposure to investment-grade U.S. bonds [3][4] - Vanguard Total International Bond ETF (BNDX) saw $9.2 billion in net inflows, with a yield of 3.0% and an average duration of seven years, although its performance has lagged behind BND [5][6] Actively Managed Fixed Income ETFs - The Janus Henderson AAA CLO ETF (JAAA) led actively managed ETFs with $9.3 billion in inflows, achieving a yield of 5.4% and a total return of 3.8% for the year [7] - iShares Flexible Income Active ETF (BINC) and JPMorgan Ultra-Short Income ETF (JPST) also performed well, with inflows of $6.2 billion and $6.1 billion respectively, offering yields of 5.1% and 4.2% [8][9] Future Outlook for Fixed Income ETFs - There is optimism for innovation in the fixed income ETF market, particularly in actively managed ETFs, as well as potential developments in fixed income index strategies [11][12]