BlackRock’s latest report highlights the rapid growth and increased centrality of bond exchange-traded funds in global portfolios, driven by rising yields, flexibility, and market stress resilience.
BlackRock has argued that bond exchange-traded funds have moved from being a convenient trading tool to becoming a more central building block in portfolios, as investors look for yield, flexibility and easier ways to manage increasingly complicated allocations.
In a paper titled “A durable foundation: How bond ETFs are powering a portfolio revolution”, the asset manager says the fixed income market has changed markedly since 2020, with global bond ETF assets more than doubling to above $3 trillion. Even so, indexed strategies still account for less than 5% of the world’s outstanding bonds, which BlackRock presents as evidence that the market remains at an early stage of development.
The firm says the case for moving out of cash has strengthened as interest rates have peaked and policymakers begin to consider cuts. In earlier easing cycles, according to BlackRock’s analysis, cash delivered weak follow-on returns once rate reductions began, while bonds tended to benefit from both income and price gains as yields fell.
BlackRock also points to the growing usefulness of bond ETFs during periods of market strain. It says average daily trading volumes in bond ETFs reached $67 billion so far in 2026, up sharply from $20 billion in 2020. Activity rose further during bouts of stress, including the tariff-driven sell-off in April 2025 and tensions linked to the Iran conflict in March 2026, when volumes jumped well above the full-year average for 2025.
The backdrop to that shift is a far more attractive income environment than investors faced a few years ago. BlackRock says 60% of global fixed income assets now yield more than 4%, compared with less than 20% in 2019, reinforcing the role of income as a more prominent source of portfolio returns.
The report also highlights a fast-growing corner of the market: active fixed income ETFs. Although they still make up a minority of fixed income ETF assets globally, BlackRock says they are expanding quickly as investors seek portfolio manager discretion within the ETF structure. The company says active fixed income ETFs grew by $215 billion in 2025 and captured roughly a third of global fixed income ETF flows, while its separate commentary on the segment says active bond ETFs passed the $1 billion assets mark and took more than $100 billion of flows last year.
That growth supports BlackRock’s broader view that bond ETFs are no longer just a tactical allocation. In the company’s telling, they are becoming core market infrastructure: a way to access diversified bond exposure, preserve liquidity and rebuild income in portfolios that are trying to do more than simply hold cash and equities.
- https://etfexpress.com/2026/04/28/bond-etfs-are-powering-a-portfolio-revolution-blackrock/ – Please view link – unable to able to access data
- https://www.blackrock.com/us/financial-professionals/insights/bond-etfs-fixed-income-investing-portfolio-revolution – BlackRock’s report, ‘A Durable Foundation: How Bond ETFs Are Powering a Portfolio Revolution’, discusses the evolution of fixed income investing, highlighting that global bond ETF assets have more than doubled since 2020, surpassing USD3 trillion. Despite this growth, indexed strategies still represent less than 5% of global bonds outstanding, indicating significant potential for expansion. The report also addresses the opportunity cost of holding cash, noting that bonds have historically delivered higher returns during rate-cutting cycles, benefiting from both higher income and price appreciation as yields declined.
- https://www.blackrock.com/us/financial-professionals/insights/active-fixed-income-etfs – BlackRock’s article, ‘The Rise of Active Fixed Income ETFs’, explores the rapid growth of actively managed fixed income ETFs, which combine the benefits of ETFs with the discretion and alpha potential of active management. The article notes that active bond ETFs have broken through $1 billion in assets under management and have captured over $100 billion of flows in 2025, accounting for 40% of all fixed income ETF flows year-to-date. This growth reflects investor demand for portfolio manager discretion delivered in an ETF format.
- https://www.blackrock.com/hk/en/ishares/insights/bond-etfs – BlackRock’s page on bond ETFs highlights the transformative impact of these instruments on fixed income investing. It notes that bond ETFs have surpassed USD1 trillion in global assets, with projections indicating they will surpass USD2 trillion by the end of 2024. The page emphasizes the simplicity, efficiency, and transparency that bond ETFs offer, providing investors with diversified exposure to global bond markets and facilitating easier portfolio construction and management.
- https://www.blackrock.com/us/financial-professionals/investments/products/bond-etfs – BlackRock’s overview of iShares Bond ETFs presents them as low-cost fixed income solutions designed to help portfolios diversify equity risk, preserve capital, and seek income. The page highlights the benefits of bond ETFs, including competitive performance, low costs, and liquidity. It also discusses the role of iShares bond ETFs in navigating markets, whether clients’ goals are equity diversification, capital preservation, or income, and introduces iBonds ETFs as a means to build bond ladders.
- https://www.blackrock.com/corporate/newsroom/press-releases/article/corporate-one/press-releases/blackrock-projects-global-bond-etf-assets-to-reach – In this press release, BlackRock projects that global bond ETF assets under management will triple to $5 trillion by 2030. The release attributes this anticipated growth to faster investor adoption and novel bond ETF applications, driving a 23% annual growth rate. It highlights the resilience and versatility of bond ETFs, noting their role in providing instant access at transparent prices to hundreds of bond market exposures, and their increasing adoption by wealth managers and institutional investors.
- https://www.blackrock.com/institutions/en-axj/ishares/strategies/fixed-income-etfs – BlackRock’s page on fixed income ETFs provides an overview of these instruments, which offer exposure to diversified baskets of bonds, ranging from government and investment-grade corporates to high yield and emerging markets. The page notes that global bond ETFs are well-positioned to reach US$6 trillion by the end of 2030. It also highlights the thematic exposures available through fixed income ETFs, including iBonds ETFs, BuyWrite ETFs, Active ETFs, and Rate/Inflation Hedged ETFs.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The article was published on April 28, 2026, and references a BlackRock paper titled ‘A durable foundation: How bond ETFs are powering a portfolio revolution’. The paper was published today, indicating freshness. However, the content may be based on BlackRock’s own research, which could limit its originality.
Quotes check
Score:
7
Notes:
The article includes specific figures and claims, such as global bond ETF assets exceeding $3 trillion since 2020 and daily trading volumes averaging $67 billion in 2026. These figures are consistent with BlackRock’s recent publications. However, without independent verification, the accuracy of these claims cannot be fully confirmed.
Source reliability
Score:
6
Notes:
The article is published on ETF Express, a niche publication focusing on ETF news. While it provides coverage of BlackRock’s report, the source’s independence is questionable, as it relies on BlackRock’s own research. Additionally, the article does not provide links to the original BlackRock paper, making it difficult to assess the full context and methodology.
Plausibility check
Score:
7
Notes:
The claims about the growth of bond ETFs and their role in portfolios are plausible and align with industry trends. However, the lack of independent verification and reliance on BlackRock’s own data raises concerns about the accuracy and potential bias of the information presented.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article presents claims about the growth and impact of bond ETFs based on BlackRock’s own research. While the information is plausible and the article is freely accessible, the lack of independent verification and reliance on BlackRock’s data raises concerns about the accuracy and objectivity of the content. Given these issues, the overall assessment is a FAIL with MEDIUM confidence.