ETF Spotlight: High-Yield Bonds

April 11th at 7:00am by Tom Lydon

Mirroring the slump in the equities market, high-yield or “junk” bond exchange traded funds have been dipping into what some call oversold territory on the latest round of risk-off sentiment.

The iShares iBoxx High Yield Corporate Bond ETF (NYSEArca: HYG) and the SPDR Barclays Capital High Yield Bond ETF (NYSEArca: JNK) have consistently closed lower over the last few days, with both finishing in technically oversold territory, writes David Penn for Forbes. [What High-Yield Bond ETFs are Saying About Stocks]

Both HYG and JNK are down sharply over the past week. The two funds are now testing their 200-day supporting levels. [Are High-Yield ETFs About to Get Junked?]

In comparison, the iShares iBoxx Investop Corporate Bond ETF (NYSEArca: LQD) is faring better. It holds investment-grade corporate debt.

Additionally, safer bond ETFs like the Vanguard Total Bond Market ETF (NYSEArca: BND) and the iShares Barclays Aggregate Bond Fund (NYSEArca: AGG) are holding up.

SPDR Barclays Capital High Yield Bond ETF

For more information on “junk” or high-yield bonds, visit our junk bonds category.

Max Chen contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.