Approximately 50% of bond ETFs are now reporting negative one-year nominal returns, marking a dramatic shift in performance despite not reaching levels seen during the 2022 Federal Reserve rate hikes. Real returns are currently significantly worse than nominal figures indicate.
Despite the abrupt market shift and increased trading volume, bond ETF arbitrage bands remain tight with no premium or discount issues emerging. The funds are handling the additional stress effectively, maintaining structural stability even as performance metrics deteriorate.
Half of Bond ETFs Post Negative 1-Year Returns Amid Market Stress
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