“If a product is successful, you often find that other ETF managers will launch products offering exposure to the same asset class,” said Deborah Fuhr, who headed ETF research at BlackRock before leaving last year to help found ETF Global Insight. “ETFs have seen significant inflows while mutual funds really haven’t.”
“There are going to be buyers” of loan ETFs, Jason Rosiak, head of portfolio management at Pacific Asset Management, said in the article. “It’s just a matter of what percentage of the market it will become. It has become a fairly high portion of the market” for junk bonds.
The S&P’s/LSTA U.S. Leveraged Loan 100 Index has gained 1.4% over the last two months, compared to the 1.1% rise in U.S. dollar-denominated high-yield bonds, according to Bank of America Merill Lynch Index data.
For more information on high-yield fixed-income assets, visit our high-yield bond category.
Max Chen contributed to this article.