An exchange traded fund that invests in high-yield corporate bonds saw its biggest one-day outflow of cash in its history, according to a report Thursday.
PHB holds assets of $885 million and was launched in November 2007. It is the third-largest high-yield ETF and is managed by Invesco PowerShares.
High-yield ETFs have been a popular option for income-seeking investors but the funds have experienced outflows and volatility lately on Europe’s debt crisis.
The recent flight to safety has pushed Treasury yields to record lows as investors seek out safe havens.
Earlier this week, the spread between junk bonds and Treasuries widened to 7.31 percentage points, the largest gap since the start of 2012, The Wall Street Journal reported. [High-Yield ETFs Hit Rough Patch]