The iShares iBoxx $ High Yield Corporate Bond ETF (NYSEArca: HYG) and the SPDR Barclays High Yield Bond ETF (NYSEArca: JNK), the two largest U.S. high-yield bond ETFs by assets, are up 0.2% and 0.1% year-to-date, respectively. Despite heavy outflows

The PowerShares Senior Loan Portfolio (NYSEArca: BKLN), a floating-rate, high-yield, speculative-grade debt, senior loan ETF, which tracks the Standard & Poor’s/LSTA U.S. Leveraged Loan 100 Index, has gained 0.6% in January, marking the first time since October 2012 that floating rate debt has risen even though the S&P 500 index fell. [Investors Flock to Floating Rate ETFs on Interest Rate Concerns]

Additionally, Pacific Investment Management Co. and Loomis Sayles & Co. are taking a closer look into emerging market bonds. Dan Ivascyn, a co-manager at PIMCO, sees potential opportunities in shifting from junk-rated corporate debt to “some of the higher-quality assets within the emerging markets.”

The iShares J.P. Morgan USD Emerging Markets Bond ETF (NYSEArca: EMB), which tracks U.S. dollar-denominated emerging market debt, holds about 58% of it weight in investment-grade debt. EMB is down 0.3% year-to-date.

For more information on speculative grade debt, visit our junk bonds category.

For full disclosure, Tom Lydon’s clients own shares of HYG and JNK.

Subscribe to our free daily newsletters!
Please enter your email address to subscribe to ETF Trends' newsletters featuring latest news and educational events.