2 ETFs to Consider Amid Record Inflows for Fixed Income

Core Insights - Fixed income ETFs are experiencing significant growth, with record inflows totaling $325 billion as of October 15, driven by funds like Vanguard Total Bond Market ETF (BND) and Vanguard Total International Bond ETF (BNDX) [1] Inflows and Performance - Vanguard's BND attracted $15 billion in inflows, serving as a core bond option that tracks the Bloomberg U.S. Aggregate Float Adjusted Index, making it suitable for a 60/40 stock-bond portfolio [2] - BNDX also saw substantial inflows of over $9 billion, indicating increased interest in international assets as the U.S. dollar declines; it tracks the Bloomberg Global Aggregate ex-USD Float Adjusted RIC Capped Index [4] Active Management Options - For those seeking an actively managed bond option, the Vanguard Core Bond ETF (VCRB) offers a 30-day SEC yield of 4.42% with a higher expense ratio of 10 basis points compared to BND's 3 basis points [3] - Vanguard has launched several new active fixed income ETFs, including the Vanguard High-Yield Active ETF (VGHY), expanding its active ETF lineup to nine funds [6] Future Outlook - The fixed income ETF market is expected to continue attracting investor capital, with 2025 marking a record year for active ETF launches; Vanguard is adapting by increasing its active fund offerings [5][7]