Still, junk-bond ETFs continue to march higher and there just aren’t many other options for investors seeking yield. [Senior Bank Loan ETF Offers High-Yield Alternative]
Volumes in the three largest high-yield ETFs increased to a daily average of $587.83 million this year, or 11.5% of daily trading in the bonds, Bloomberg reports. That’s up 90% from last year, when the amount trading was equivalent to 7.3% of trading in the underlying bonds.
“Rising volumes are inevitable with an outperforming asset class,” said Neal Epstein, a senior credit officer at Moody’s Investors Service, in the story.
The five-biggest junk ETFs have increased their holdings to $30.8 billion since the first such fund began in 2007, according to Bloomberg.
iShares iBoxx High Yield Corporate Bond
Full disclosure: Tom Lydon’s clients own HYG and JNK.