# Bond ETFs in a Sell-Off: Discounts to NAV

> 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.

Data as of Oct 22, 2026. Rebuilt every trading night.

Figures as of Oct 22, 2026.

## Bond ETFs in a sell-off

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.

Most bonds trade between dealers, not on an exchange. Many issues do not trade on a given day.

So a bond fund’s net asset value (NAV) rests on estimated prices from pricing services.

The ETF itself trades all day on an exchange. In a sell-off, its price can move first.

### March 2020

In mid-March 2020, some of the largest investment-grade and high-yield corporate bond ETFs recorded discounts to NAV of more than 5%.

In January those discounts had been no larger than 0.1%, the Bank of England reported in May 2020.

Trading in the largest U.S. investment-grade corporate bond ETFs ran at more than three times its January average in March.

The Bank found ETF prices took in new information faster than the funds’ NAVs.

### Why redemption does not close the gap at once

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.

### Both sides of the trade

A seller at a discount receives less than NAV says the bonds are worth.

A buyer at a discount pays less, but the gap can widen before it closes.

The fair limit is midpoint + X¢ to buy, midpoint − X¢ to sell.

X is half the fund’s typical spread in cents, rounded up, and never less than 1¢.

The premiums guide covers the gap in calmer markets.

Live · IBND · Jun 17, 2026

−1.25%

The widest close below NAV among 477 bond ETFs, in their records to Oct 22, 2026.

Bond ETFs with a premium record 477 IBND on Jun 17, 2026 −1.25% IBND, 95% of days within ±0.59% Close against the issuer’s NAV, each fund’s own window, to Oct 22, 2026 · ETFIQ

### Related funds

### Questions people ask

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’s 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’s 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

A guide to trading conditions, not advice. ETFIQ makes no recommendations. Standards and sources

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Source: ETFIQ, independent ETF data. Recomputed nightly from public filings and prices.
Cite: ETFIQ, Bond ETFs in a sell-off, data as of Oct 22, 2026. https://etfiq.com/trading/bond-selloff/
Licence: https://etfiq.com/license/ Figures ETFIQ computes are free to use with attribution: ETFIQ (etfiq.com). Issuer data stays under its owner's terms.
HTML: https://etfiq.com/trading/bond-selloff/