The US fixed income ETF industry is on track to hit $300 billion in assets under management for the first time. As of October 29th, the industry is at $294.8 billion, according to BlackRock. Since 2008, the fixed income corner of the U.S. ETF industry has grown nearly fivefold.
Treasury ETFs are contributing to that asset growth in significant fashion, particularly in the current quarter. Since the start of the fourth quarter, five of the top-10 asset gathering ETFs are bond funds, including two dedicated Treasury funds. That group also features the iShares Core U.S. Aggregate Bond ETF (NYSEArca: AGG) and the Vanguard Total Bond Market ETF (NYSEArca: BND), both of which have large allocations to Treasuries. [Buffers With Bond ETFs]
Chart Courtesy: J. Lyons Fund Management
Tom Lydon’s clients own shares of TLT.