JNK has provided annualized returns of 7.0% since 2007, compared to the 10.3% return of the Barclays Capital High Yield Very Liquid Index. HYG has shown annualized returns of 19.9% over the past three years, compared to 27.8% of the Barclays Capital Index. [Bond ETF Assets Rise Nearly 40% in a Year]
Brian Kinney, global head of fixed income beta solutions at State Street Global Advisors, which manages the SPDR ETF suite, contends that the ETFs underperformed in 2009 when the market rallied 40%.
“Over full investment cycles, indices that notionally do similar things will have similar performances,” Alex Claringbull, senior fixed income portfolio manager at BlackRock, parent company of iShares, said in the article.
iShares iBoxx $ High Yield Corp Bond Fund
For more information on high-yield debt, visit our high-yield bonds category.
Max Chen contributed to this article.