Credit: 
(New York)
Everyone knows that equities have been the epicenter of the ETF explosion. Growth has come all across the asset class, but one big counterpart has generally been left behind, at least until now-bonds. However, bond ETFs are now starting to grow at a strong clip. One big new entrant this year was BlackRock's ultra low cost investment grade corporate bond ETF, which has already brought in more than $10 bn since its launch just a handful of weeks ago. One big help is that institutional investors have been large buyers, a big shift from the previous status quo, which was buying individual bonds directly.
FINSUM : This is good news for the fund providers and does provide a level of ease for institutional investors. It is also useful for retail to access the bond market in a more convenient way. However, the liquidity mismatch between bonds and ETFs is worrying.
- ETFs
- bonds
- credit
- equities
- Blackrock
- corporate bonds
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
