Bond ETF Fund Flows: As of February 26, 2021
- In total, bond ETF assets slipped modestly but within the category massive shifts were seen in February!
- Broad based, investment grade bond ETFs had February inflows of over $16billion and are the leaders in asset collection.
- Investor inflation concerns are reflected in the February inflows of over $3.99billion into TIPS related ETFs.
- Risk-Off? Junk bond ETFs saw back-to-back months of outflows with February outflows totaling over $1.7billion.
- Senior loans, long the “don’t touch this” asset class, have now seen a resurgence as senior loan yields have been attractive relative to fixed rate junk. Senior loan ETFS have seen a $2.85billion inflow year-to-date and $1.7billion in the last 30-days.
- Municipal bond ETFs now total over $67billion in assets as the asset class has enjoyed strong demand up until the last few business days of February where outflows manifested themselves.
- Long U.S. Treasury bond ETFs saw outflows of over $2billion in the last 30-days as investors continue to seek less duration risk and more yield elsewhere.
Source: ETF Action. Data as 02/26/2021.
Bond ETF Assets Under Management
Source: ETF Action. Table is provided for illustrative purposes only. Past performance is not a guarantee of future results. (1) Not all ETFs or asset classes represented here. (2.) Excluding floating rate. FactSet classifications are used. Data as 02/26/2021.
Data Resources Used in this Report:
- ETF Action: www.etfaction.com
- At the time of this writing, JR Rieger’s fixed income related holdings include various investment grade & high yield municipal bonds, insured municipal bonds, municipal bond money market funds and a position in the VanEck Vectors High-Yield Municipal Index ETF (HYD).