June 2019 Bond ETF Flow Report

What are the June 2019 Bond ETF Flows Telling Us?

  • Confusing picture of fund flows indicate the possibility of institutions rebalancing as we prepare for the second half.
  • Clear outflow leaders include extremely short U.S. Treasury (GBIL & SHY) seeing a total of over $5billion in outflows and floating rate asset classes like floating rate corporate bonds (FLOT) and senior loans (BKLN) seeing a total outflow of over $1billion.
  • Enormous inflows have been in iShares iBoxx $ Investment Grade Corporate ETF (LQD) with a surge of over $5billion month to date.
  • iShares collected over $6billion in assets in its short treasury (SHV) and 7-10 Year treasury (IEF) ETFs as investors seem to extending out the curve.
  • High yield corporate bonds saw a bit of a rebound as the iShares iBoxx $ High Yield Corporate ETF (HYG) collected $1.5billion so far in June. It’s major competitor SPDR Bloomberg Barclays High Yield Bond ETF (JNK) collected only $160million during this time period.
  • Two aggregate bond ETFs, Vanguards BND and iShares AGG together collected over $2.6billion (approximately $1.3billion each).
  • Other notable ETFs include the iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) which collected nearly $900million.

Bond ETF Flows June 2019 (As of June 26, 2019):

Top Five Inflow ETFs

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Bottom Five Outflows

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Source: First Bridge Data. Table is provided for illustrative purposes only. Past performance is not a guarantee of future results. Data as of 6/26/2019.

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