FAST FIVE: The Fed Is Now A Top 5 Holder Of The Biggest Corporate Bond ETFs
Of course, for now the Fed is “only” buying corporate bond ETFs (while waiting for the next crash before buying stock ETFs), but even here its footprint is already massive.
While the Fed's own disclosure of which ETFs it owns is minimal on its own H.4.1 weekly filing, Bloomberg has been kind enough to compile the Fed's bond ETF holdings.
In total, the Fed now has a stake in no less than 16 ETFs (that Bloomberg is aware of).
but it's not just investment grade ETFs: indeed, as of this moment, the Fed is also the 5th biggest holder of the JNK junk bond ETF.
The good news: while the Fed has now effectively taken over the corporate bond market, it still has to buy equity ETFs.