Junk Bond ETFs Other Than the Big Two Seeing Inflows
Here are some under-the-radar junk bonds.
Exchange traded funds tracking high-yield bonds continue to be popular with investors. With the Federal Reserve announcing a third round of quantitative easing, risk appetite jumped, triggering a surge in junk bond ETF inflows.
Junk bond funds hauled in $3.63 billion in investor cash for the week that ended September 19, Bloomberg reported, citing EPFR data. ETFs gained 40%, or $1.45 billion, of those inflows, according to Bloomberg.
That is a tidy sum and one that implies that more than two ETFs are benefiting from increased institutional use of junk bond
The Bloomberg piece notes that for the week that ended September 19, HYG hauled in $402 million in new capital while JNK garnered $163 million in new inflows. That equals $565 million, meaning $885 in junk bond ETF inflows went into ETFs other than HYG and JNK. HYG and JNK have $17.3 billion and $12.8 billion in AUM, respectively, so their dominance in the high-yield bond ETF space is tough to challenge.
That also means there are junk bond ETFs that are flourishing and not drawing much mainstream attention for the effort.
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