Vanguard has seen its total market bond ETF (BND) suffer from the recent volatility, with its 12 March closing price trading on a 6.2% discount to NAV. As noted, fixed income market disruptions in the week beginning 9 March caused greater disparity than is typical between the price of bond ETFs and the value of their constituent bonds, leading to this discount. Fixed income ETFs tend to trade at a premium, rather than discount, to NAV, with BND's average closing premium totalling 0.17% since its launch in 2007. Rich Powers, head of ETF product management at Vanguard, noted that dis...
To continue reading this article...
Join International Investment
Join International Investment today
Unlock members-only benefits:
- Unlimited access to real-time news, industry insights, video features and market intelligence
- Stay ahead of the curve with spotlights on international financial centres, regional trends international advice and global industry leaders
- Receive breaking news stories straight to your inbox in the daily newsletters
- Hear the latest cross jurisdictional developments in wealth planning, tax, regulation, investing, retirement and protection
- Members-only access to the Editor’s weekly news roundup newsletter
- Members-only access to analysis via our exclusive industry polls
- Be the first to hear about our events and awards programmes