The inherent flaws of corporate bond ETFs
Bond ETFs have grown from $10 bln in 2009 to $1.2 tln. They significantly deviate from the original ETF principle. In effect they are derivative products, reliant on complex structures that may be open to abuse. Also, corporate bonds are less liquid, but tougher bank capital rules have made capital-intensive activities, like market making, unattractive.

27 February 2023

Financial Times