CNBC Pro

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

Share
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.

More In Pro News and Analysis

CNBC ProHere are Tuesday's biggest analyst calls of the day: Apple, Spotify, Charles Schwab, Best Buy & more
CNBC ProWall Street firms cut price targets for Facebook, but they're still bullish on the stock. Here's why
CNBC ProCredit Suisse downgrades Beyond Meat to underperform after company cuts sales guidance