Investors pour $625B into bond funds despite poor bond ETF returns in 2023

In 2023, bond investors have faced losses, with major bond ETFs like the iShares Core US Aggregate Bond ETF down 4% and the iShares 20+ Year Treasury Bond ETF down nearly 7%. Despite this, investors have poured a record $625 billion into bond ETFs and mutual funds through August, the highest inflow since at least 2010. This trend is notable because investors typically avoid underperforming assets, yet bond funds are attracting significant capital. The continued inflows suggest investors may be seeking bond exposure for diversification or income despite recent losses.

Bond ETFs like iShares Core US Aggregate Bond ETF (AGG) and iShares 20+ Year Treasury Bond ETF (TLT) continue to trade below their 52-week highs on Pluang, with AGG at USD 96.17 and TLT at USD 81.81. Both ETFs showed positive 1-day changes of +0.22% and +0.69% respectively, indicating some short-term buying interest. These prices and movements are recorded as of Sep 21, 2026 19:21 WIB.