Fed's mid-May ETF shopping spree netted $1.3 billion
From May 12 to May 19 the U.S. Federal Reserve bought $1.58 billion in corporate debt ETFs, following up on its March 23 pledge to provide liquidity to the corporate bond market. At the end of the seven-day period, the positions were valued at $1.3 billion. One-quarter of the purchases were of iShares iBoxx $ Investment Grade Corporate Bond ETF with other significant purchases in Vanguard's Intermediate-Term Corporate Bond and Short-Term Corporate Bond ETFs, based on May 19 market values.
High-yield funds made up $223.4 million of the purchase value as of May 19, or 17.1%, according to data collected by ETFGI.
The debt-buying program is being managed by BlackRock, which runs $1.8 trillion in ETFs through its iShares products. About 48% of the assets by market value purchased were of iShares ETFs, however, BlackRock has waived their management fees; based on the May 19 market values, fees would have amounted to $1.13 million.