Fixed income ETFs had net inflows of $35.7 billion including almost $19 billion into investment grade and high yield ETFs. With this strong start to the year, fixed income ETFs are on track for another record year, according to BlackRock. [Big Inflows for ETFs in March]
Institutional investors pouring money into LQD should be heartened to know liquidity for the ETF’s nearly 1,350 holding rose in the first quarter.
“This high average liquidity is not skewed by outliers as only nine (0.7%) of LQD constituents have seen less than $20m of TRACE volume over the first quarter of the year. This contrasts with 48% of bonds within the wider investment grade bond universe. In fact, every single constituent of the LQD saw TRACE volumes in the first quarter, something not seen by 21% of US investment grade bonds,” according to Markit.
iShares iBoxx $ Investment Grade Corporate Bond ETF
Tom Lydon’s clients own shares of HYG and LQD.