World’s Biggest Credit ETF Just Lost the Most Cash on Record
- Investors pulled record $1.4 billion from LQD at start of week
- Downgrades and new issuance stoke fund’s holdings of BBB debt
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Just hours before the U.S. election got underway, investors pulled the most cash ever from the world’s largest exchange-traded fund tracking corporate bonds.
As market volatility awakens and the pandemic hits America Inc.’s creditworthiness, more than $1.4 billion exited the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) on Monday, according to data compiled by Bloomberg. Trading activity included a single transaction worth about $250 million, though it’s unclear if that constituted selling or buying.