The Federal Reserve will start buying ETFs on Tuesday. Here's how to ride its coattails

Federal Reserve Chairman Jerome Powell
Kevin Lamarque | Reuters

The Federal Reserve will begin buying exchange-traded funds holding corporate bonds for the first time ever on Tuesday to support the credit markets pressured by the coronavirus crisis.

The central bank announced late Monday it will buy "U.S.-listed ETFs whose investment objective is to provide broad exposure to the market for U.S. corporate bonds."

The Fed would not specify exactly which ETFs it would buy.

Ned Davis Research identified funds to help investors follow the central bank.

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