“The European high yield market definitely looks more attractive compared to the US, particularly given that credit quality is on average better in Europe,” Jorgen Kjaersgaard, a high yield portfolio manager at AllianceBernstein, said in the Reuters article. “With bund yields at 1.6% and, in contrast to the US, no cliff risk of a rates move, there is a very strong support in the market.”
The Market Vectors IHY ETF provides bond exposure to a number of European countries, including the U.K. 16.5%, Luxembourg 12.4%, Netherlands 10.5%, France 10%, Germany 5.0%, Ireland 4.0%, Italy 2.3%, Spain 1.8%, Denmark 1.6%, Finland 1.2%, Sweden 1.0% and Portugal 1.0%. IHY has a 0.40% expense ratio and a 5.65% 30-day SEC yield.
The iShares HYXU ETF also includes exposure to European countries France 15.2%, Netherlands 13.4%, Luxembourg 12.7%, U.K. 12.7%, Germany 8.6%, Italy 7.2%, Spain 4.5%, Ireland 3.9% and Denmark 2.4%. HYXU has a 0.40% expense ratio and a 4.81% 30-day SEC yield.
iShares Global ex USD High Yield Corporate Bond ETF
For more information on high-yield, speculative grade debt , visit our high-yield bonds category.
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own JNK.