Largest Bond ETF Now Trading At a Massive Discount [View article]
Halfempty, it wasn't just the "last quoted price". There was selling pressure all day. As I mentioned in the article, 1.5mm shares traded ($140 mm) compared to the normal 600k.
Alex_G, you do raise a good point, but the discount seems then it would be greater on a pure corporate bond ETF than one that includes a lot more MBS and Treasury securities. CFT, which is a rather small ETF, closed at 77 compared to an NAV of 86 (slightly wider). That one is 100% corporate bonds compared to AGG being just 20% or so. I appreciate your observation, though - that NAV could be somewhat suspect.
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Halfempty, it wasn't just the "last quoted price". There was selling pressure all day. As I mentioned in the article, 1.5mm shares traded ($140 mm) compared to the normal 600k.
Oct 11 21:40 pm
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All Comments by Alan Brochstein »Largest Bond ETF Now Trading At a Massive Discount [View article]
Alex_G, you do raise a good point, but the discount seems then it would be greater on a pure corporate bond ETF than one that includes a lot more MBS and Treasury securities. CFT, which is a rather small ETF, closed at 77 compared to an NAV of 86 (slightly wider). That one is 100% corporate bonds compared to AGG being just 20% or so. I appreciate your observation, though - that NAV could be somewhat suspect.