How Much Credit Risk Should You Take On?

In the first quarter of 2024, fixed income investors turned to investment-grade corporate bond ETFs.

The Vanguard Intermediate-Term Corporate Bond ETF (VCIT) pulled in $2.3 billion, while the Vanguard Long-Term Corporate Bond ETF (VCLT) added $1.5 billion. Peer intermediate-term investment-grade ETFs from iShares and State Street Global Advisors also added $1.0 billion. In contrast, the iShares Boxx $ High Yield Corporate Bond ETF (HYG) had $2.1 billion of net outflows.

What Fixed Income ETFs Are Advisors Using?

During a late March VettaFi webcast, we asked advisors: “What kinds of fixed income ETFs do you currently use?” The most popular answer was investment-grade grade corporates (61%) followed by high yield bonds (44%) and Treasuries (43%).

A message from Advisor Perspectives and VettaFi: To learn more about this and other topics, check out our most recent market outlooks.