Assets under management in bond exchange traded funds have risen about 38% over the past year to nearly $200 billion, according to a report Thursday.
Investors have been “pouring money” into bond ETFs since 2008, and there are than 170 funds currently listed, according to a Reuters article.
“Investors are beating the bushes for alternatives to low yields on money markets and CDs,” it said. “The buying-binge for bond ETFs has coincided with increased investor demand for corporate debt.”
For example, high-yield ETFs indexed to corporate “junk” bonds such as iShares iBoxx High Yield Corporate Bond (NYSEArca: HYG), SPDR Barclays High Yield Bond (NYSEArca: JNK) and PowerShares High Yield Corporate (NYSEArca: PHB) have been huge sellers this year. [High-Yield Bond ETFs See Record Inflow]
High-yield ETFs recovered somewhat Wednesday following a recent slide. [Popular High-Yield Bond ETFs Stumble]