The new fund may end up competing with iShares Global High Yield Corporate Bond (NYSEArca: GHYG) and other ETFs that invest in international speculative-grade debt. [A Global Approach to High-Yield Bond ETFs]
Junk bond ETFs have been popular with investors looking to boost yield in a low-rate environment, but there are worries over the potential impact of rising rates.
For example, some have favored high-yield bond ETFs with shorter durations, or bank loan ETFs that track floating-rate securities. [High-Yield Bond ETFs that Protect Against Rising Interest Rates]
Also, ETF providers have rolled out funds with built-in rate hedges such as ProShares High Yield-Interest Rate Hedged (BATS: HYHG), Market Vectors Treasury-Hedged High Yield Bond ETF (NYSEArca: THHY) and First Trust High Yield Long/Short ETF (NasdaqGM: HYLS). [New High-Yield Bond ETF]