Characterizing the Fed’s decision to make fixed income ETFs part of its COVID-inspired quantitative easing (QE) program a “pretty big deal,” Vanguard’s Johnny Garcia argues that in making bond ETFs part of QE, the Fed “credentialized” ETFs in general and bond ETFs in particular.

Vanguard’s Johnny Garcia explains why flows into fixed income ETFs are accelerating, and he drills into how well the ETF structure held up during the COVID-related market volatility early in 2020.