“Investors are unsure of how to replace the high-grade fixed income assets that were once the foundation of their portfolios,” said James Ross, executive vice president and global head of SPDR Exchange Traded Funds at SSgA, in the statement. “The SPDR Barclays International High Yield Bond ETF provides investors with another opportunity to diversify their high yield exposure.”
SSgA’s other high-yield bond ETFs include the SPDR Barclays High Yield Bond ETF (NYSEArca: JNK), the second-largest U.S. junk bond ETF, and JNK’s lower duration equivalent, the SPDR Barclays Short Term High Yield Bond ETF (NYSEArca: SJNK).
The international high-yield bond ETF concept has previously been tested with some success. For example, the Market Vectors International High Yield Bond ETF (NYSEArca: IHY) has $148.2 million in assets under management while the Market Vectors Emerging Markets High Yield Bond ETF (NYSEArca: HYEM) has $212 million in assets. [Rebound in European Junk Bond Market Helps This ETF]
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of JNK.