The "ins" and "outs" flows of Fixed Income ETFs in 2022

As investors turn on the risk-off mode and seek yield amid inflationary pressure, fixed-income ETFs may or may not be in favor, depending on the actions of central banks like the Fed will be taking to fend off a sharp rise in consumer prices. While most nominal rates have risen, real rates have largely remained in negative territory, making fixed income investments less attractive to some investors. Year-to-date, fixed income ETFs have seen outflows of $7.77 billion, out of which $11.57 billion exited ETFs in America. Meanwhile, fixed income ETFs in Europe and APAC received $2.28 billion and $1.37 billion respectively over the same period. Below is a breakdown of the biggest flow winners and losers in 2022.

Fixed Income Flows in America

Among the flow bleeders were iShares iBoxx $ High Yield Corporate Bond ETF (HYG, -$4,014 million), iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD, -$3,889 million), iShares 20+ Year Treasury Bond ETF (TLT, -$3,581 million), iShares TIPS Bond ETF (TIP, -$3,273 million), Vanguard Short-Term Bond ETF (BSV, -$2,428 million), SPDR Barclays High Yield Bond ETF (SSG4, -$2,059 million), and X-trackers USD High Yield Corporate Bond ETF (HYLD, -$1,410 million).

On the receiving end were iShares Core Total USD Bond Market ETF (IUSB, $2,236 million), Vanguard Total International Bond ETF (BNDX, $1,456 million), Vanguard Short-Term Corporate Bond ETF (VCSH, $1,369 million), Vanguard Long-Term Government Bond ETF (BLV, $1,239 million), iShares Floating Rate Bond ETF (FLOT, $1,200 million), SPDR Portfolio Long Term Treasury ETF (SPTL, $1,169 million), iShares Short Treasury Bond ETF (SHV, $1,081 million), and  SPDR Bloomberg Barclays 1-3 Month T-Bill ETF (BIL, $ 978 million).

Fixed Income Flows in Europe

In Europe, iShares Core € Corp Bond UCITS ETF (IEAC, -$722 million), iShares J.P. Morgan $ EM Bond UCITS ETF (JPEA, -$700 million), iShares $ Treasury Bond 1-3yr UCITS ETF (IBTA, -$566 million), iShares Core € Corp Bond UCITS ETF (IEAA, -$498 million), Xtrackers II Eurozone Government Bond UCITS ETF (XGLE, -$395 million), Lyxor Core US TIPS (DR) UCITS ETF (TIPH, -$362 million), and iShares $ TIPS UCITS ETF (ITPS, -$332 million) witnessed some of the largest outflows

Meanwhile, SPDR Bloomberg SASB U.S. Corporate ESG UCITS ETF (SPPU, 1,373 million), iShares $ Corp Bond UCITS ETF (LQDE, $592 million), iShares Core Global Aggregate Bond UCITS ETF (AGGH, $490 million), iShares China CNY Bond UCITS ETF (CYBU, $484 million), and Invesco US Treasury Bond 7-10 Year UCITS ETF (TREX, $472 million) were the among the largest flow receivers.

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