SPDR Barclays Capital High Yield Bond is up 6% for the trailing three-month period.
Junk bond ETFs may also be less sensitive to a rise in interest rates.
“When rates rise, it’s usually because the economy is improving—good news for high-yield issuers, who are generally more economically sensitive,” WSJ.com’s Total Return blog reports. “But high-yield bonds actually have less sensitivity to interest rates because of the possibility of default, which lowers the chance that high-yield bonds will be held to maturity. As a result, junk bonds are less sensitive to rising rates than other bonds and usually outperform other bonds when rates rise.”
SPDR Barclays High Yield Bond
