Nevertheless, investors are still favoring the high-yield junk bond category at the moment as defaults remain relatively low and the ETF allows for easy, diversified exposure to this area of fixed income.
Corporate bonds now comprise 11.7% of all the assets held by ETFs, up from 7.5% at the end of 2010, WSJ.com’s MarketBeat blog reports.
- iShares iBoxx $ High Yield Corporate Bond (NYSEArca: HYG) yield 6.55%
- SPDR Barclays High Yield Bond (NYSEArca: JNK) yield 6.72%
- SPDR BarCap Short Term High Yield Bond ETF (NYSEArca: SJNK) yield 5.73%
- PIMCO 0-5 Year High Yield Corporate Bond Index (NYSEArca: HYS) yield 5.33%
SPDR Barclays High Yield Bond
Tisha Guerrero contributed to this article.
Full disclosure: Tom Lydon’s clients own HYG and JNK.