While examining different corporate bond ETFs, I noticed that many bond funds seem substantially exposed to the finance sector. I see percentages of up to 60% of all positions in financial businesses.
I'm trying to grasp whether such funds make sense. It might simply be that the financial sector is so huge that these exposures are warranted. My knowledge of the financial sector is simply not extensive enough.
But if our purpose is to lend money to companies so that they can produce services or goods, why would we lend to a financial sector that in turn would just lend (in one form or another) also to other companies? Or, if the financial sector instead of lending invests with the money we borrowed them, will this not provide a correlation between these bond funds to stocks in general? Would the latter not be undesirable when the goal is diversification into different asset classes?
TL;DR: Does substantial exposure to the financial sector make sense in our bond funds?