Bond ETFs under stress in market sell-off

Beyond redemption?

tim-strauts morningstar

During the course of a tumultuous recent trading day in the US, the prices of some exchange-traded funds (ETFs) appeared to stop making sense. The iShares MSCI Indonesia ETF, a fund tracking Indonesian stocks, veered 7% from the price of the stocks it was supposed to track, according to Bloomberg. A municipal bond fund run by State Street Global Advisers (SSgA) dropped to a 4.8% discount to the price of its underlying bonds.

The sell-off - and the accompanying bad publicity - was a stunning

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