Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

How do bond ETFs behave when markets are extreme?

https://advisors.vanguard.com/insights/article/howdobondetfsbehavewhenmarketsareextreme

How do bond ETFs behave when markets are extreme?
Bond ETF premiums and discounts: Analyzing market price and NAV behavior from the financial crisis till now
Fixed income ETF investors in March experienced some of the worst discounts seen across bond ETFs since the global financial crisis. These discounts, a reflection of the difference between an ETF's market price—the price at which an investor transacts—and its net asset value (NAV), have drawn a lot of attention. Across Vanguard's fixed income ETFs, a few showed uncharacteristically large deviations, with a couple posting discounts greater than 7% on a given day.

Enjoy
Sign In or Register to comment.