As of May 16, HYG was trading at a 2% discount, while JNK’s discount was at 1.7%, according to investment researcher Morningstar.
Junk bond ETFs have been very popular with investors seeking to boost income. JNK and HYG each hold more than $10 billion in assets.
The corporate debt funds have fatter yields because investors are holding lower-quality bonds. High-yield ETFs are sensitive to the economy and default levels, which have remained low despite the lingering stress from the financial crisis.
SPDR Barclays Capital High Yield Bond ETF
