Bond exchange-traded funds have been racking up investment inflows over the last few years and continue to gather steam, thanks in large part to institutional investors, according to BlackRock. The asset management giant forecasted bond ETF assets to more than triple, to $6 trillion worldwide, by the end of the decade.
According to a BlackRock report, it took 17 years for bond ETF assets to reach $1 trillion in 2019 and then just another five years for that figure to climb to $1.7 trillion as of the end of September 2024.
“The global bond ETF industry is growing faster than expected,” the report stated. “A key driver of this growth has been the adoption of fixed-income ETFs by institutional investors.”
According to BlackRock, the 10 largest asset managers—and nine of the 10 largest insurance companies—along with some central banks, are using…