BlackRock revealed that iShares fixed income ETFs have reached $1 trillion in assets globally.

According to the firm, this milestone comes just a year after the global bond ETF industry surpassed US$2 trillion.

As such, BlackRock believes industry growth will continue to accelerate, with global bond ETF assets under management poised to reach US$6 trillion by 2030.

“We are extremely proud that BlackRock pioneered this space, introducing the first fixed income ETF more than 20 years ago. Their invention transformed the global fixed income market by allowing investors to buy and sell entire portfolios of bonds on the stock exchanges with just a few clicks,” said James Waterworth, Director of Wealth Allocation at BlackRock Australia.

Waterworth emphasized that this momentum is being reflected in the local ETF market.

"Bond ETFs have also transformed Australian markets by making it easier for investors to adjust their fixed income portfolios in real time and democratizing the local fixed income market - which has traditionally been difficult for retail investors to access."

The Australian bond ETF industry has grown at an average annual rate of 43 per cent since 2013, according to the investment manager. since, surpassing $28 billion in assets under management in July.

"This illustrates the extent to which Australian investors have embraced the convenience, efficiency and transparency that bond ETFs offer," Waterworth said.

BlackRock maintains a broad range of Australian fixed income assets, managing more than $5 billion across 13 cash and bond ETFs.

Last month, the firm announced its intention to launch what has now become its longest-duration exposure available within its domestically listed product range – the iShares 20+ Year US Treasury Bond ETF (AUD Hedged) (ULTB) – offering to Australian investors more precise fixed income investment options for their portfolio.

At the time, Waterworth noted that bond yields globally were decades old.

"We believe investors have an opportunity to move out of cash and into fixed income exposures to lock in these higher returns as the market tends to price in changes in cash rates long before they occur .”

Fixed income ETFs also make up about 14 per cent of the total Australian ETF market, Global X data recently revealed, up from the 7 per cent market share they held 10 years ago.

According to the ETF provider, the challenging climate has led investors to choose cheaper investment options that offer reliable returns, and ETFs have stolen the spotlight from managed funds in what has been a "pivotal moment" for fixed income.

"ETFs have democratized access to this asset class, making fixed income easier, more liquid and cheaper to manage," Global X emphasizes.