Dow Jones columnist Ian Salisbury notes that some Bond ETFs have had problems tracking their underlying index.
In the article Tumult Jars Bond-Tracking ETFs, Salisbury notes that of about 50 domestic fixed-income ETFs traded in the U.S., six missed their mark by 5% or more on at least one day last week. In all, 22 were off by 2% or more at least once.
Tracking away from NAV is supposed to be unusual for exchange-traded funds. As Salisbury notes, the SPDR S&P 500 ETF (SPY), which tracks the Standard & Poor’s 500-stock index, has missed its benchmark by more than 2% only twice in almost 4,000 trading days.