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Fallen-Angel ETF Doubles to $1 Billion as ‘Covid Discount’ Fades

  • FALN posted record week of inflows amid reflation-trade bets
  • ‘The whole script flipped’ after vaccine breakthroughs: Samana
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The Fallen-Angel ETF That's Flying High

Investors are piling into the bonds that were most battered by the coronavirus pandemic as a vaccine-fueled recovery trade ripples across assets.

The iShares U.S. Fallen Angels USD Bond ETF (ticker FALN) -- which tracks U.S. corporate bonds that have lost the investment-grade status -- posted a record weekly inflow of $478 million, followed by another $93 million influx at the start of this week, according to data compiled by Bloomberg. That demand doubled the fund’s assets to more than $1 billion.