Overall, the outlook for the U.S. economy is still uncertain, with U.S. GDP growth currently in its weakest cycle and a prolonged economic recovery playing out.
Recent talks of a junk bond bubble in fourth quarter of 2012 have been laid to rest for the start of 2013. Despite modest outflows from HYG, the fact remains that inflows were steady and heavy for most of 2012. So far in 2013, JNK has gained 0.1% and and HYG has gained about 0.7%, reports Benzinga. [Dividend, REIT and High Yield ETFs for Income]
iShares iBoxx $ High Yield Corporate Bond Fund
Tisha Guerrero contributed to this article.
Full disclosure: Tom Lydon’s clients own HYG and JNK.