Global bond ETF industry to triple to $5 trillion by 2030 – BlackRock

By Saikat Chatterjee

LONDON (Reuters) – Assets under management held by global fixed income exchange traded funds are expected to triple to $5 trillion by 2030, according to the world’s largest asset manager, BlackRock.

BlackRock said it believes the global bond ETF industry is poised to reach $2 trillion in 2023, despite currently “challenging macroeconomic conditions”.

Bonds have come under pressure this year with government bond yields rising across major markets as hawkish central banks and surging inflation have upended a four-decade trend of falling interest rates.

Fixed income ETFs have proven to be a resilient investment tool during various market conditions, including near-zero interest rates, pandemic-related market stresses and inflationary pressures, BlackRock said.

“The global bond ETF industry is growing faster than we expected, propelled by self-reinforcing and enduring adoption trends from our clients during the pandemic era,” said Carolyn Weinberg, Global Head of Product for ETF and Index Investments at BlackRock.

(The story refiles to correct figure in headline to $5 trillion from $10 trillion earlier)

(Reporting by Samuel Indyk; Editing by Saikat Chatterjee)