{"id":468162,"date":"2022-06-27T22:50:00","date_gmt":"2022-06-27T19:50:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/market-extra-major-bond-etfs-on-pace-for-worst-first-half-to-a-year-on-record\/"},"modified":"2022-06-27T22:50:00","modified_gmt":"2022-06-27T19:50:00","slug":"market-extra-major-bond-etfs-on-pace-for-worst-first-half-to-a-year-on-record","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/market-extra-major-bond-etfs-on-pace-for-worst-first-half-to-a-year-on-record\/","title":{"rendered":"#Market Extra: Major bond ETFs on pace for worst first half to a year on record"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3bc0119217c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3bc0119217c\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/market-extra-major-bond-etfs-on-pace-for-worst-first-half-to-a-year-on-record\/#%E2%80%9CMarket_Extra_Major_bond_ETFs_on_pace_for_worst_first_half_to_a_year_on_record%E2%80%9D\" >&#8220;Market Extra: Major bond ETFs on pace for worst first half to a year on record&#8221;<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/market-extra-major-bond-etfs-on-pace-for-worst-first-half-to-a-year-on-record\/#Joy_Wiltermuth\" >Joy Wiltermuth<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CMarket_Extra_Major_bond_ETFs_on_pace_for_worst_first_half_to_a_year_on_record%E2%80%9D\"><\/span>&#8220;Market Extra: Major bond ETFs on pace for worst first half to a year on record&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\">\n<\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000983438\" role=\"document\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0000983438\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Carnage in bonds this year has put billions worth of fixed-income exchange-traded funds on pace to post their worst first half to a year on record, according to Dow Jones Market Data.<\/p>\n<p> Stocks<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"negative\">-0.29%<\/bg-quote><span>,<\/span><br \/>\n       bonds and more sectors have been hit hard in 2022 as the Federal Reserve has moved to dramatically raise interest rates and tighten financial conditions to fight inflation at a 40-year high.<\/p>\n<div class=\"paywall\">\n       The historic repricing of financial assets has hurt major fixed-income exchange-traded funds, or ETFs, an increasingly popular way for individuals and institutional investors to gain exposure to industries, sectors, commodities, currencies and other corners of financial markets in the past two decades.<\/p>\n<p>Here\u2019s a snapshot of the negative total return performance of major fixed-income ETFs in the past six months:<\/p>\n<ul class=\"articleList\">\n<li>\n      -11.6% for the $81 billion iShares Core U.S. Aggregate Bond ETF <a rel=\"nofollow noopener\" target=\"_blank\" href=\"#phrase-company?ref=COMPANY%7CAGG;onlineSignificance=prominent\" class=\"icon none\">AGG<\/a> <\/p>\n<\/li>\n<li>\n      -10.8% for the $30.5 billion iShares TIPS Bond ETF<br \/>\n        TIP,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/200600110\/composite\" class=\"negative\">-0.73%<\/bg-quote><\/p>\n<\/li>\n<li>\n      -13.8% for $13.3 billion iShares iBoxx $ High Yield Corporate\u00a0Bond\u00a0ETF<br \/>\n        HYG,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/204471305\/composite\" class=\"negative\">-0.57%<\/bg-quote>\n      <\/li>\n<li>\n      -24.4% for the $19.7 billion iShares 20+ Year Treasury\u00a0Bond\u00a0ETF<br \/>\n        TLT,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/206026314\/composite\" class=\"negative\">-0.85%<\/bg-quote>\n      <\/li>\n<li>\n      -17.3% for the $30.4 billion iShares iBoxx $ Investment Grade Corporate\u00a0Bond\u00a0ETF<br \/>\n        LQD,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/206919681\/composite\" class=\"negative\">-0.94%<\/bg-quote><span>.<\/span><\/p>\n<\/li>\n<li>\n      -12.2% for the $19.1 billion iShares 7-10 Year Treasury\u00a0Bond\u00a0ETF<br \/>\n        IEF,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/202862654\/composite\" class=\"negative\">-0.56%<\/bg-quote>\n      <\/li>\n<li>\n      -3.4% for the $25.5 billion iShares 1-3 Year Treasury\u00a0Bond\u00a0ETF<br \/>\n        SHY,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/204549300\/composite\" class=\"negative\">-0.11%<\/bg-quote><\/p>\n<\/li>\n<\/ul>\n<p>  If those levels hold through June 30, it will be their worst first half to a year on record, according to Dow Jones Market Data.<\/p>\n<p>Shares of ETFs, like stocks, trade in a flash, which can make them one of the first sectors to experience selling in volatile markets, as investors look to quickly raise cash for liquidity. <\/p>\n<p>While most of the above-listed funds track Treasury debt, two hold exposure to corporate bonds, which have been under pressure from rates volatility. Last week, investment-grade corporate bond ETFs and related funds booked their largest weekly outflows of 2022. <\/p>\n<p><strong>See also<\/strong>: Why high-yield ETF outflows made this Jefferies strategist \u2018a little nervous\u2019<\/p>\n<p>The sharp rise \u2014 and retreat \u2014 in recent weeks of Treasury yields has come as concerns grow over the potential for a slowdown or U.S. recession, which could spell trouble for companies, households and the economy.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p><strong>See:<\/strong> Citigroup cuts S&amp;P 500 target to reflect blend of recession, \u2018soft landing\u2019 scenarios   <\/p>\n<p>The 10-year Treasury rate<br \/>\n        TMUBMUSD10Y,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.000%\" channel=\"\" class=\"\">3.203%<\/bg-quote><br \/>\n      was at 3.193% on Monday, off the year\u2019s high of 3.482% touched in mid-June, but above its low of 1.628% in January, according to Dow Jones Market Data.<\/p>\n<p>Central bankers frequently <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.reuters.com\/article\/us-yellen-distressed\/yellen-warns-of-corporate-distress-economic-fallout-idUSKCN1QG2CZ\" class=\"icon none\">expressed concerns <\/a>about America\u2019s<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.ft.com\/content\/5b804e1f-f023-427f-adb7-09e5c6d4f6b9\" class=\"icon none\"> pile of corporate debt<\/a> before the pandemic, which led to another borrowing boom. Corporate bond ETFs can trade instantly, but can contain exposure to less liquid bonds, particularly in times of market stress.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Joy Wiltermuth\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/www.marketwatch.com\/author\/joy-wiltermuth\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"twitter\",\"url\":\"https:\/\/twitter.com\/JoyWiltermuth\",\"text\":\"@JoyWiltermuth\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:joy.wiltermuth@marketwatch.com\",\"text\":\"joy.wiltermuth@marketwatch.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Joy_Wiltermuth\"><\/span>Joy Wiltermuth<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><ufc-follow-author-widget product=\"marketwatch\" author-id=\"104_MW\" author-name=\"Joy Wiltermuth\" signin-url=\"https:\/\/accounts.marketwatch.com\/login?target=https%3A%2F%2Fwww.marketwatch.com%2Fstory%2Fmajor-bond-etfs-on-pace-for-worst-first-half-to-a-year-on-record-11656359428%3Frss%3D1%26siteid%3Drss\" panda-api=\"https:\/\/follow-api.marketwatch.com\"><\/ufc-follow-author-widget><\/p><\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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Stocks SPX, -0.29%, bonds and more sectors&#8230;<\/p>\n","protected":false},"author":1,"featured_media":468163,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.mktw.net\/im-572217\/social","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-468162","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/468162","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=468162"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/468162\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/468163"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=468162"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=468162"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=468162"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}