News | 07.02.19
Bond Exchange-Traded Funds Pass $1 Trillion in Assets
The amount of money in fixed-income exchange-traded funds (ETFs) passed $1 trillion last month. Not existing two decades ago, the products were birthed by firms like BlackRock, Invesco, and State Street, who invested heavily in the idea of straddling two disparate markets by wrapping slow-to-trade bonds in lightning-fast funds. The biggest proponents of bond ETFs say their growth has added much-needed speed to the sluggish business of bond trading, allowing investors to move money swiftly when market sentiment turns. Skeptics argue that bond ETFs could accelerate a selloff if fleeing investors flood the debt market with more sell-orders than it can handle.
Read the full article on Wall Street Journal