When it comes to junk bond ETFs, Vanguard
] will not give in to peer pressure.
Despite seeing rivals iShares
] and State Street Global Advisors
] see big inflows for high-yield-bond ETFs, Vanguard has no plans to start its own, according to a report in InvestmentNews
This is because of the lack of liquidity for the bonds, which causes swings that can hurt investors by forcing them to buy or sell an ETF of those bonds at a substantial premium or discount, according to Ken Volpert
, head of taxable bonds at Vanguard.
For more details, check out the original article here
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