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Biggest Credit ETF Bleeds $3.6 Billion in Worst-Ever Month

  • LQD slammed with outflows after $14.9 billion haul in 2020
  • The $42 billion fund had biggest quarterly rout in 12 years

After a blowout 2020 for corporate debt, exchange-traded fund investors are quickly souring on those bonds.

The world’s largest credit ETF notched its worst month of outflows since it began trading about two decades ago. Traders pulled roughly $3.6 billion from the iShares iBoxx $ Investment Grade Corporate Bond ETF (ticker LQD) in March, according to data compiled by Bloomberg. That exodus came as the $42 billion fund suffered its biggest quarterly rout in 12 years.