Fed to wind up 'vital' pandemic-induced ETF purchasing scheme

'Gradual and orderly’ sales process

James Baxter-Derrington
clock • 1 min read
The Fed ended purchasing of ETFs last year

The Fed ended purchasing of ETFs last year

The Federal Reserve has begun the process of winding down its purchasing of ETFs, which it initiated last March in an attempt to ease the economic and financial consequences of the coronavirus pandemic.

According to a statement issued on 2 June, the US central bank will offload the passive funds it bought as part of the Secondary Market Corporate Credit Facility (SMCCF), although it already ended its purchasing of ETFs on 31 December 2020. In detail: The Fed's first wave of ETF purchases It has stated the sales will be "gradual and orderly" and will factor in "daily liquidity and trading conditions" in order to "minimise the potential for any adverse impact on market functioning". The Fed described the SMCCF as "vital" to the restoration of market functioning during March, which s...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on ETFs

European-focused investment grade and high yield credit have highest inflows since April 2020.

Fixed income dominates ETF flows in July

Accounted for $32.5bn

clock 08 August 2022 • 2 min read
Total funds under management have fallen on the previous year, down to £1.4trn from June 2021’s £1.5trn.

Every asset class suffers outflows in second worst month on record

Responsible investment holds up

James Baxter-Derrington
clock 04 August 2022 • 2 min read
Inflation protection drops to 14% of views, down from 17% over the previous quarter.

Advisers curb inflation protection research

UK CPI climbs to 9.4%

clock 20 July 2022 • 2 min read