But which ones could be buys this week?

Let's take a look at one that has been named as a buy and one that has been named as a hold by analysts courtesy of The Bull. Here's what you need to know about them:

Firetrail Aust Small Companies Fund – Active ETF (ASX: FSML)

The team at DP Wealth Advisory believes that the Firetrail Aust Small Companies Fund could be a good option for investors. It has named the ASX ETF as a buy.

As you might have guessed from its name, this fund is focused on the small side of the market. Its holdings currently include tech star Life360 Inc (ASX: 360), bauxite miner Metro Mining Ltd  (ASX:MMI), and gold miner Genesis Minerals Ltd (ASX: GMD). It commented:

This active exchange traded fund focuses on smaller ASX-listed companies. It generally holds between 30 and 60 companies, aiming to outperform the ASX Small Ordinaries Accumulation Index over the medium to long term. The ongoing management expense ratio is 0.85 per cent per annum. Key holdings included Life360, Genesis Minerals and Channel Infrastructure NZ at August 31, 2025. The fund returned 11.03 per cent, after fees, for the month ending August 31, 2025, outperforming the ASX Small Ordinaries Accumulation Index by 2.62 per cent. We expect FSML to continue performing well. The fund has risen from $1.55 on April 9 to trade at $2.27 on October 9.

VanEck Australian Subordinated Debt ETF (ASX: SUBD)

The broker isn't a buyer of the VanEck Australian Subordinated Debt ETF. Instead, it is recommending this ASX ETF as a hold.

This fund invests in a portfolio of subordinated bonds with the aim of providing investment returns before fees and other costs that track the performance of the index. Its holdings include notes from Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) to name two.

Commenting on the fund, DP Wealth said:

Listed in October 2019, SUBD holds a portfolio of subordinated bonds, issued predominantly by Australian banks and insurers. The bonds are all investment grade, either rated A or BBB, with an average maturity of eight years. The ETF's appealing income return was above 5.7 per cent in the 12 months to September 30, 2025. However, it's important to note that distributions may retreat if the Reserve Bank of Australia's cash rate falls.

The post Analyst says this ASX ETF is a top buy (and names 1 to hold) appeared first on The Motley Fool Australia.

So, what's the appeal?

Let's investigate.

Why are investors loving fixed-income ASX ETFs this year?

ASX ETFs, which provide exposure to a basket of assets, have been popular for a number of years now.

Their key benefit is providing instant diversification in a single trade.

There are many types of ETFs covering many different asset classes.

One of those asset classes is bonds, and this is what fixed-income ETFs are all about.

A fixed-income ASX ETF gives investors exposure to a diversified basket of bonds.

A bond is like a tiny slice of a large loan pie.

They are used by corporations and governments as a way to borrow funds from many investors for a specified period.

During that period, they promise to pay interest at a set rate, before returning the capital to the investors in full at the end of the specified period.

Bonds typically pay a higher rate of interest than savings accounts. That's how organisations attract investors. If they didn't pay a higher rate, then conservative investors would just leave their cash in the bank.

Say you buy a 10-year bond with a coupon or interest rate of 5%, and it costs you $10,000.

You'll then receive your coupon payments periodically — usually twice per year — and in 10 years' time, you'll get your $10,000 back.

You can also sell your bonds during that 10-year period if their market value goes up.

Bonds are considered a safe-haven asset for investors in times of economic uncertainty, like now.

Bond prices tend not to fluctuate as much as share prices, and the coupon payments provide a predictable passive income stream.

Buying a fixed-income ASX ETF gives investors exposure to a bunch of bonds, thereby spreading the risk.

New ASX data reveals the best-performing fixed-income ETFs for total returns over the year to 31 August.

The top 5 fixed-income ASX ETFs

According to the data, here are the top five fixed-income ASX ETFs today:

The VanEck Australian Subordinated Debt ETF (ASX: SUBD) has delivered a 6.34% total return over the past 12 months. This includes reinvested dividends with a historical yield of 4.62%.

The iShares Government Inflation ETF (ASX: ILB) has delivered a 5.44% total return over the past 12 months. This includes reinvested dividends with a historical yield of 1.02%.

The BetaShares Australian Investment Grade Corp Bond ETF (ASX: CRED) has delivered a 5.15% total return over the past 12 months. This includes reinvested dividends with a historical yield of 4.57%.

The Betashares Australian Major Bank Hybrids Index ETF (ASX: BHYB) has delivered a 5.14% total return over the past 12 months. This includes reinvested dividends with a historical yield of 4.58%.

The iShares Global High Yield Bond (AUD Hedged) ETF (ASX: IHHY) has delivered a 5.02% total return over the past 12 months. This includes reinvested dividends with a historical yield of 4.11%.

The post Fixed-income ASX ETFs are all the rage. Here are the top 5 performers appeared first on The Motley Fool Australia.