ETF Spotlight on SPDR Barclays Capital High Yield Bond (NYSEArca: JNK), part of a weekly series. Assets: $3 billion

Objective: Tracks the Barclays Capital High-Yield Very Liquid Index

Holdings: JNK holds 157 high-yield securities with an average credit rating of B2; companies include Harrah’s, GMAC, Inc. and Citigroup Capital. [Why high-yield is in favor.]

What You Should Know

  • JNK currently yields 12.6%
  • The expense ratio is 0.40%
  • The top sectors are industrial (75.1%), finance (11.6%) and utilities (11.3%)

The Latest News

  • Analysts note a shift in investor sentiment toward corporate bonds: they tend to feel the asset class will outperform other areas of fixed income, reports Romy Varghese for The Wall Street Journal.
  • High-yield issuance hit $147.7 billion this year; the previous high was in 2006, at $143.5 billion and it triples the $47.7 billion issued in all of 2008. [Corporate bond ETFs benefit as sales break records.]
  • Even December, which is typically a slow month for junk bond issuance, has already exceeded the monthly average for 2009.

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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.