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Fed Reveals ETFs It Purchased in Emergency Lending Program

  • ETFs from Vanguard and BlackRock were the most heavily bought
  • Majority of purchases made in investment-grade credit
The Marriner S. Eccles Federal Reserve building stands in Washington, D.C.
Photographer: Andrew Harrer/Bloomberg
Updated on

The Federal Reserve purchased shares of exchange-traded funds including the iShares iBoxx $ Investment Grade Corporate Bond ETF and the Vanguard Intermediate-Term Corporate Bond ETF in the opening days of its program to support corporate borrowers, according to disclosures published Friday.

The purchases, which began May 12, are part of an emergency program known as the Secondary Market Corporate Credit Facility, and represent one of the Fed’s key efforts to combat the coronavirus pandemic. The disclosures covered purchases made through May 18. The central bank’s total holdings of ETFs invested in corporate debt rose to $2.98 billion as of May 26, according to weekly balance sheet data published Thursday.