During that period, AGG and BND did not deviate widely from their net asset values. From Sept. 25 to Oct. 10, the average premium or discount to NAV for AGG was less 0.11% while BND’s was 0.124%, according to BlackRock data.Year-to-date, the average premium or discount to NAV for the two ETFs is about 0.08%.
“As demonstrated by the ETFs we examined during this period, fixed income ETFs provide deep liquidity, price transparency, and fair allocation of costs when markets are challenged with uncertainty or significant money flows, as well as during periods of market stability. In times of stress, fixed income ETFs are increasingly becoming the place where bond investors are finding liquidity and price discovery,” said BlackRock.
