The Secondary Market Corporate Credit Facility (SMCCF) is allowed to purchase ETFs, including high yield ETFs. The SMCCF can buy ETFs, including high yield based ETFs like HYG and JNK which own Hertz bonds. JNK, another high yield ETF, managed by State Street Global Advisors also had about 0.03% of their assets in Hertz bonds. If the entire $1.8 billion of SMCCF ETF investments were in high yield ETFs, the exposure to Hertz bonds would be $540,000. So far, the Fed has only had gains from buying high yield ETFs!

Source: Forbes May 25, 2020 17:15 UTC