More large investors are turning to liquid high-yield ETFs to trade speculative-grade debt rather than buying and selling the actual bonds.
High-yield ETFs have gathered $26.7 billion in assets since they first listed five years ago, according to Bloomberg.
The two largest ETFs in the category are SPDR Barclays Capital High Yield Bond ETF (NYSEArca: JNK) and iShares iBoxx High Yield Fund (NYSEArca: HYG). [High-Yield ETFs Stem the Bleeding]
High-yield ETFs are attracting a record volume of institutional investors, with the buyers accounting for 52% of HYG and 62% of JNK, according to the report.
HYG, which is managed by BlackRock’s iShares, holds assets of $13.9 billion. State Street oversees JNK, which holds $10.3 billion.