Investors have funneled over $6.2 billion in new assets into high-yield bond ETFs in the first half of the year, reports Jason Kephart for InvestmentNews. Meanwhile, high-yield-bond mutual funds attracted $16 billion in assets over the same period.
However, Timothy Strauts, an ETF analyst at Morningstar, warns that ETFs are only as liquid as their underlying holdings and the high-yield bond market is quite illiquid. Consequently, during times of high volatility, the ETFs may see wider premiums and discounts. [Are ETFs Making the High-Yield Bond Market More Volatile?]
For more information on high-yield fixed-income assets, visit our high-yield bonds category.
Max Chen contributed to this article.