“As trading becomes more difficult in the bonds, people will say trading in ETFs is more efficient,” said Chris Hempstead, director of ETF execution at WallachBeth Capital, in the Bloomberg story. “By trading the ETF, you’re transferring the onus for trading the bonds onto someone else.”
Trading volume in HYG and JNK has risen 22% above the six-month average while overall trading for the debt has declined 9%, according to the article.
SPDR Barclays Capital High Yield Bond ETF
Full disclosure: Tom Lydon’s clients own HYG.