On expectations the European Central Bank could unleash its own quantitative easing program, investors have allocated capital to the iShares Global ex USD High Yield Corporate Bond ETF (NYSEArca: HYXU) and the Market Vectors International High Yield Bond ETF (NYSEArca: IHY), both of which are heavy on European junk bonds. [Europe’s Junk Bond Market a Boon for These ETFs]
The Vanguard Total International Bond ETF (NasdaqGM: BNDX) has brought in over $55 million since the start of March. International bonds are usually less sensitive to changes in U.S. interest rates than are U.S. Treasuries.
PowerShares Senior Loan Portfolio
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of HYG.