{"url":"https://etfiq.com/trading/bond-selloff/","section":"trading","title":"Bond ETFs in a Sell-Off: Discounts to NAV | ETFIQ","description":"Among 477 bond ETFs, the widest discount to net asset value at a close, in their records to Oct 22, 2026, was 1.25%, at IBND on Jun 17, 2026. Not advice.","as_of":"Oct 22, 2026","structured_data":[{"@type":"Article","headline":"Bond ETFs in a sell-off","url":"https://etfiq.com/trading/bond-selloff/","dateModified":"2026-10-22","author":{"@id":"https://etfiq.com/#org"},"publisher":{"@id":"https://etfiq.com/#org"},"about":"ETF trading","isAccessibleForFree":true,"citation":["https://www.bankofengland.co.uk/-/media/boe/files/financial-stability-report/2020/may-2020.pdf"]},{"@type":"FAQPage","mainEntity":[{"@type":"Question","name":"Are bond ETFs liquid?","acceptedAnswer":{"@type":"Answer","text":"Their shares often trade more easily than the bonds they hold. In March 2020, trading in the largest U.S. investment-grade corporate bond ETFs ran above three times January\u2019s average."}},{"@type":"Question","name":"How do I tell whether a bond ETF is trading at a discount or premium?","acceptedAnswer":{"@type":"Answer","text":"Compare its price with its NAV. Issuers publish the gap every day, and each fund\u2019s ETFIQ trading page prints its record."}},{"@type":"Question","name":"Why are many bond ETFs trading at discounts?","acceptedAnswer":{"@type":"Answer","text":"In a sell-off the ETF price moves at once. NAV rests on estimated bond prices, which can lag."}}]},{"@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"ETFIQ","item":"https://etfiq.com/"},{"@type":"ListItem","position":2,"name":"Trading","item":"https://etfiq.com/trading/"},{"@type":"ListItem","position":3,"name":"Bond ETFs in a sell-off","item":"https://etfiq.com/trading/bond-selloff/"}]},{"@type":"WebPage","name":"Bond ETFs in a Sell-Off: Discounts to NAV","description":"Among 477 bond ETFs, the widest discount to net asset value at a close, in their records to Oct 22, 2026, was 1.25%, at IBND on Jun 17, 2026. Not advice.","url":"https://etfiq.com/trading/bond-selloff/","dateModified":"2026-10-22","isPartOf":{"@type":"WebSite","name":"ETFIQ","url":"https://etfiq.com"},"speakable":{"@type":"SpeakableSpecification","cssSelector":[".lede",".faq"]},"publisher":{"@id":"https://etfiq.com/#org"}}],"characters":3657,"truncated":false,"content":"ETFIQ / Trading / Bond ETFs in a sell-off \n \n Figures as of Oct 22, 2026.\n Bond ETFs in a sell-off\n Among 477 bond ETFs, the widest discount to net asset value at a close, in their records to Oct 22, 2026, was 1.25%, at IBND on Jun 17, 2026.\n Most bonds trade between dealers, not on an exchange. Many issues do not trade on a given day.\n So a bond fund\u2019s net asset value (NAV) rests on estimated prices from pricing services.\n The ETF itself trades all day on an exchange. In a sell-off, its price can move first.\n March 2020\n In mid-March 2020, some of the largest investment-grade and high-yield corporate bond ETFs recorded discounts to NAV of more than 5%.\n In January those discounts had been no larger than 0.1%, the Bank of England reported in May 2020.\n Trading in the largest U.S. investment-grade corporate bond ETFs ran at more than three times its January average in March.\n The Bank found ETF prices took in new information faster than the funds\u2019 NAVs.\n Why redemption does not close the gap at once\n An authorized participant (AP) can redeem shares for a slice of the bonds. In a sell-off it must then sell those bonds into a thin market. That cost shows up as the discount.\n Both sides of the trade\n A seller at a discount receives less than NAV says the bonds are worth.\n A buyer at a discount pays less, but the gap can widen before it closes.\n The fair limit is midpoint + X\u00a2 to buy, midpoint \u2212 X\u00a2 to sell.\n X is half the fund\u2019s typical spread in cents, rounded up, and never less than 1\u00a2.\n The premiums guide covers the gap in calmer markets.\n Live \u00b7 IBND \u00b7 Jun 17, 2026 \n \u22121.25%\n The widest close below NAV among 477 bond ETFs, in their records to Oct 22, 2026.\n Bond ETFs with a premium record 477 IBND on Jun 17, 2026 \u22121.25% IBND, 95% of days within \u00b10.59% Close against the issuer\u2019s NAV, each fund\u2019s own window, to Oct 22, 2026 \u00b7 ETFIQ\n Related funds\n IBND trading costs BND trading costs AGG trading costs SGOV trading costs Questions people ask\n Are bond ETFs liquid? Their shares often trade more easily than the bonds they hold. In March 2020, trading in the largest U.S. investment-grade corporate bond ETFs ran above three times January\u2019s average. How do I tell whether a bond ETF is trading at a discount or premium? Compare its price with its NAV. Issuers publish the gap every day, and each fund\u2019s ETFIQ trading page prints its record. Why are many bond ETFs trading at discounts? In a sell-off the ETF price moves at once. NAV rests on estimated bond prices, which can lag. Where to next\n ETF trading costs and liquidity Limit orders vs market orders for ETFs Why low volume does not mean illiquid Premiums and discounts to NAV International ETFs when the home market is closed Stop orders and Aug 24, 2015 Leveraged and inverse ETFs: trading costs on top of decay Trading a new ETF in its first weeks Ex-dividend days and income ETFs Buffer ETFs: reset day and buying mid-period How to read the IQ Liquidity Score How the IQ Liquidity Score is built A guide to trading conditions, not advice. ETFIQ makes no recommendations. Standards and sources \n Cite this page. ETFIQ, Bond ETFs in a sell-off, data as of Oct 22, 2026. https://etfiq.com/trading/bond-selloff/ Free to use with attribution for figures ETFIQ computes; issuer data stays under its owner's terms. The underlying files are at Open data .\n Other forms Plain ETFIQ, Bond ETFs in a sell-off, data as of Oct 22, 2026. https://etfiq.com/trading/bond-selloff/ APA ETFIQ. (Oct 22, 2026). Bond ETFs in a sell-off. Retrieved from https://etfiq.com/trading/bond-selloff/ Markdown [Bond ETFs in a sell-off (ETFIQ, Oct 22, 2026)](https://etfiq.com/trading/bond-selloff/)","source":"ETFIQ, independent ETF data. Recomputed nightly from public filings and prices.","publisher":{"@id":"https://etfiq.com/#org","name":"ETFIQ","url":"https://etfiq.com"},"license":"https://etfiq.com/license/","license_text":"Figures ETFIQ computes are free to use with attribution: ETFIQ (etfiq.com). Issuer data stays under its owner's terms.","citation":"ETFIQ, Bond ETFs in a sell-off, data as of Oct 22, 2026. https://etfiq.com/trading/bond-selloff/"}