HYG has a 5.57% 30-day SEC yield and a 4.25 year effective duration – duration is a measure of a bond’s sensitivity to changes in interest rates. JNK has a 5.91% 30-day SEC yield and a 4.43 duration.
Meanwhile, the iShares 3-7 Year Treasury Bond ETF (NYSEArca: IEI), which has a similar duration of 4.44 years and a 1.29% 30-day SEC yield, fell 2.6% year-to-date. Moreover, the iShares iBoxx $ Investment Grade Corporate Bond Fund (NYSEArca: LQD), which tracks investment grade corporate debt and has a 3.72% 30-day SEC yield and a 7.39 year duration, declined 5.6% year-to-date.
For more information on high-yield debt, visit our high-yield bonds category.
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own HYG and JNK.