Best Performing Fixed Income ETFs Of The Year

In a terrible year for the asset class, not every fixed income ETF is down.

sumit
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Senior ETF Analyst
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Reviewed by: Sumit Roy
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Edited by: Sumit Roy

It’s been a tough year to be a fixed income investor. The $82 billion iShares Core U.S. Aggregate Bond ETF (AGG) is down by nearly 10% in 2022, putting it on track for its worst year ever. Like AGG, most fixed income ETFs are down significantly. 

Excluding leveraged products, there are about a dozen fixed income ETFs that are up on a year-to-date basis. Most of these funds use shorts, put options or similar strategies, which enables them to go up when bond prices go down (and rates rise). 

For example, the Simplify Interest Rate Hedge ETF (PFIX) is designed “to be functionally similar to owning a position in long-dated put options on 20-year US Treasury bonds.” It’s up 57.5% this year. 

The FolioBeyond Rising Rates ETF (RISR) holds U.S. Treasurys and interest-only mortgage-backed securities. The MBS IOs portion of the portfolio has benefited from rising rates, propelling the fund to a 31.3% gain in 2022. 

Some of the more conventional bond ETFs have also managed to eke out gains this year. The WisdomTree Floating Rate Treasury Fund (USFR) is up 0.42% year –to date. The floating rate notes that USFR holds have little interest rate risk, as their coupon payments are reset periodically to match prevailing market rates.  

Similarly, ultra-short maturity bond ETFs, like the Clearshares Ultra-Short Maturity ETF (OPER), have little interest rate risk because they get paid back so quickly. OPER is up 0.15% this year. 

For a full list of this year’s top-performing fixed income ETFs, see the table below: 

 

Best-Performing Fixed Income ETFs Of The Year (ex. leveraged ETFs)

TickerFundYTD Return
PFIXSimplify Interest Rate Hedge ETF57.45%
KMLMKFA Mount Lucas Index Strategy ETF35.13%
RISRFolioBeyond Rising Rates ETF31.31%
FAILCambria Global Tail Risk ETF12.21%
RRHAdvocate Rising Rate Hedge ETF11.46%
RINFProShares Inflation Expectations ETF7.70%
USFRWisdomTree Floating Rate Treasury Fund0.42%
TFLOiShares Treasury Floating Rate Bond ETF0.36%
OPERClearshares Ultra-Short Maturity ETF0.15%
SGOViShares 0-3 Month Treasury Bond ETF0.07%
BILSPDR Bloomberg 1-3 Month T-Bill ETF0.01%
PVIInvesco VRDO Tax-Free ETF0.00%
CLTLInvesco Treasury Collateral ETF0.02%
GBILGoldman Sachs Access Treasury 0-1 Year ETF0.07%
IBCEiShares iBonds Mar 2023 Term Corporate ex-Financials ETF0.08%
IBHBiShares iBonds 2022 Term High Yield and Income ETF0.08%
IBDNiShares iBonds Dec 2022 Term Corporate ETF0.08%
BILSSPDR Bloomberg 3-12 Month T-Bill ETF0.09%
SHViShares Short Treasury Bond ETF0.14%

Note: Data measures total returns for the year-to-date period through May 13, 2022. 

 

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Sumit Roy is the senior ETF analyst for etf.com, where he has worked for 13 years. He creates a variety of content for the platform, including news articles, analysis pieces, videos and podcasts.

Before joining etf.com, Sumit was the managing editor and commodities analyst for Hard Assets Investor. In those roles, he was responsible for most of the operations of HAI, a website dedicated to education about commodities investing.

Though he still closely follows the commodities beat, Sumit covers a much broader assortment of topics for etf.com, with a particular focus on stock and bond exchange-traded funds.

He is the host of etf.com’s Talk ETFs, a popular video series that features weekly interviews with thought leaders in the ETF industry. Sumit is also co-host of Exchange Traded Fridays, etf.com’s weekly podcast series.

He lives in the San Francisco Bay Area, where he enjoys climbing the city’s steep hills, playing chess and snowboarding in Lake Tahoe.