Fixed Income ETF Liquidity: The Nonstory

January 04, 2017

While fixed-income ETFs remain subject to all of the usual sources of bond market risk, including credit and interest rate (or duration) risk, as can be seen from the activity on Veterans Day, access to exchange-traded liquidity is a major benefit of supplementing a bond portfolio with fixed-income ETFs.

Investors looking for guidance on how to select a fixed-income ETF may want to start by reading this article about muni ETFs that has some insights relevant to other fixed-income ETFs. The Fixed Income channel also has helpful resources.

Ticker Fund AUM
Net Flows
11/8 thru 12/27
AGG iShares Core U.S. Aggregate Bond ETF $41.30 $452.90
LQD iShares iBoxx $ Investment Grade Corporate Bond ETF $26.80 -$2,590.30
TOTL SPDR DoubleLine Total Return Tactical ETF $3.00 $56.00
HYG iShares iBoxx $ High Yield Corporate Bond ETF $18.60 $2,802.30
JNK SPDR Bloomberg Barclays High Yield Bond ETF $11.90 $639.00
MUB iShares National Muni Bond ETF $7.80 $318.00
HYD VanEck Vectors High-Yield Municipal Index ETF $1.70 -$421.00

ETFs highlighted in the article. Data from FactSet Research Systems via 


Patrick Luby is a municipal bond market and portfolio strategy specialist and the author of At the time of writing, the author held none of the securities referenced. This is not a recommendation to buy, sell or hold any of the securities or strategies mentioned. The author does not provide investment, tax, legal or accounting advice. Investors should consult with their own advisor and fully understand their own situation when considering changes to their strategy, tactics or individual investments. Information is based on sources believed to be reliable, but its accuracy is not guaranteed. Additional information is available upon request.


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