BlackRock Corporate-Bond ETF Extends Outflows in ‘Biggest Pain Trade’
- Corporate-bond ETF sees five straight days of withdrawals
- Move seen as reflecting rate concern, rather than credit angst
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Investors are cashing out of one of the biggest exchange-traded funds that target corporate bonds, a sector that’s trailing the broader fixed-income market before a widely expected Federal Reserve interest-rate hike next month.
The $34 billion iShares iBoxx $ Investment Grade Corporate Bond ETF (ticker LQD) saw its fifth consecutive day of outflows Tuesday, the longest streak since February-March 2020, when the pandemic started battering the global economy, data compiled by Bloomberg show. Traders favor the ETF as a highly liquid tool for wagering on corporate debt.