BondBloxx ETFs reach $2bn AUM milestone

Aug 9th, 2023 | By | Category: Fixed Income

BondBloxx Investment Management, an ETF provider specializing in ‘precise’ fixed income exposures, has announced that its ETF suite has surpassed $2 billion in assets under management.

Brian O'Donnell, co-Founder of BondBloxx

Brian O’Donnell, co-Founder of BondBloxx.

Having made its ETF debut in February 2022, BondBloxx’s earlier products included industry-specific high yield ETFs as well as a trio of high yield funds targeting specific credit buckets.

The majority of the firm’s AUM can, however, be found within its latest product suite which was introduced in September 2022 – an industry-first line-up of US Treasury ETFs delivering precise duration exposures.

The suite consists of eight funds targeting portfolio durations of six months and one, two, three, five, seven, ten, and twenty years. The ETFs are linked to indices developed by Bloomberg that consist of duration-constrained subsets of US Treasury bonds with over $300 billion outstanding.

According to data from BondBloxx, US Treasury ETFs captured 60% of total US fixed income ETF inflows between the start of the year and the end of July as investors pursued the segment’s attractive yields while insulating their portfolios against economic uncertainty.

Reflecting investors’ ongoing concerns over rising interest rates, however, the majority of BondBloxx’s AUM is currently located within its shortest-duration US Treasury ETFs with the funds targeting the six-month, one-year, and two-year tenors of the yield curve currently housing approximately $900 million, $500m, and $100m, respectively.

Brian O’Donnell, co-Founder of BondBloxx, commented: “We are excited to see the continued client interest and adoption of BondBloxx ETFs. We’re grateful to our clients for making BondBloxx one of the fastest-growing investment management firms because we focus on helping investors navigate the bond markets with greater confidence and precision. We are encouraged by the progress and even more excited about the future.”

JoAnne Bianco, Partner at BondBloxx, added: “With the ‘income’ back in fixed income, we see opportunities for investors across the fixed income landscape. How investors position their portfolios within fixed income is essential, as we expect continued elevated levels of total return performance dispersion across bond categories like ratings, sectors, and duration.”

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