The flows illustrate investors’ hunger for yield, and corporate bond ETFs have rallied on better U.S. economic data, low defaults and improved balance sheets.
Some portfolio managers say the asset class remains undervalued due to the overly pessimistic view on the economy and investors’ preference for U.S. government bonds. [High-Yield Bond ETFs in Favor]
Last month, iShares iBoxx High Yield Corporate Bond (NYSEArca: HYG), SPDR Barclays High Yield Bond (NYSEArca: JNK) and iShares iBoxx Investment Grade Corporate Bond ETF (NYSEArca: LQD) saw inflows of $2.2 billion, $1.4 billion and $1.1 billion, respectively, according to Index Universe. [ETF Focus: Corporate Bonds]
iShares iBoxx High Yield Corporate Bond
Full disclosure: Tom Lydon’s clients own VWO.