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Three fixed-income ETFs target income, with yields from 4.95% to 7.79%
The article says inflows into fixed-income ETFs have totaled about $300 billion since the start of 2026 as the Fed holds its target rate at 3.5% to 3.75%.
Fixed-income ETFs have attracted about $300 billion in new investments since the start of 2026, as investors seek income without relying on aggressive bets that interest rates will fall further, according to MarketBeat Ratings. The report points to the Federal Reserve holding its target rate at 3.5% to 3.75%, alongside inflation running at 3.5%, as part of the backdrop for investor demand.
MarketBeat Ratings compares three income-focused ETFs within fixed income, noting that their yields, fees, credit quality, and sensitivity to rates and recessions differ even when they sit under the same broad category. The JPMorgan BetaBuilders USD High Yield Corporate Bond ETF (BBHY) is highlighted as offering a 7.79% dividend yield with a 0.07% expense ratio, and it holds below-investment-grade, U.S.-dollar-denominated high yield corporate bonds.
The report says BBHY’s underlying exposure is to conventional fixed-rate “junk” bonds, which can rise in price when interest rates fall, but typically show less sensitivity to day-to-day rate moves than some other bond types. It adds that the fund’s majority holdings are rated BB or B, and it has higher recession exposure due to unsecured bonds from junk-rated issuers that could see spreads widen and net asset value fall.
MarketBeat Ratings also outlines two alternative approaches within the fixed-income bucket, including the Invesco Senior Loan ETF (BKLN) and the Janus Henderson AAA CLO ETF (JAAA), spanning floating-rate senior loans and AAA-rated CLO tranches, respectively, and contrasts how each strategy may perform under different rate and credit scenarios.