“Since late last year, junk bond funds have been nothing if not reliable and predictable. Mutual funds focused on high-yield debt recorded an 11th straight week of net inflows,” in the latest week, Barron’s reports.
“Clearly, while dividend paying equities are growing increasingly popular, junk bond ETFs are too. The segment is attracting considerable inflows and could continue to do so if the Fed keeps rates steady at their current, ultra-low level,” adds Eric Dutram in commentary for Zacks.
Inflows and rising bond prices have pushed assets higher in the junk bond ETFs at a rapid clip.
However the “meteoric rise in shares outstanding since the start of the year” in high-yield ETFs “may finally be taking a breather,” TF Market Advisors notes.
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