ETF Spotlight: International Junk Bonds | ETF Trends

ETF Spotlight on the SPDR International High Yield Bond ETF (NYSEArca: IJNK), part of an ongoing series.

Assets: $45.1 million

Objective: The SPDR Barclays International High Yield Bond ETF tries to reflect the performance of the Barclays Global HY ex US Domiciled 350mn+ Cash Pay Index, which is comprised of international high yield, fixed rate, fixed income corporate markets of issuers domiciled outside the U.S., including emerging markets.

Holdings: Top holdings include Wind Acquisition FIN 7/15/2017 1.2%, FMG Resources AUG 11/01/2019 0.8%, SMFG Pref Cap USD 7/29/2049 0.7%, Commerzbank AG 3/22/2019 0.7% and EDP Finance BV 9/26/2016 0.7%.

What You Should Know:

  • State Street Global Advisors sponsors the fund.
  • IJNK has a 0.40% expense ratio.
  • The ETF has 253 components, and the top holdings make up 7.2% of the overall portfolio.
  • Sector allocations include corporate industrial 75.2%, corporate finance 20.2% and corporate utility 3.6%.
  • The fund holds 1.0% in Aaa rated debt and 99.0% in debt rated below Baa.
  • Country allocations include Italy 13.1%, U.K. 11.1%, Germany 10.0%, France 8.9%, Russia 5.9%, Canada 5.7%, Luxembourg 5.6%, Spain 5.5%, Netherlands 4.2%, Brazil 4.0%, Portugal 3.6%, Mexico 2.5%, Ireland 2.3%, Japan 1.9%, China 1.6%, Sweden 1.5%, Jamaica 1.4%, India 1.4%, Colombia 1.4%, Ukraine 1.2% and Finland 0.9%.
  • IJNK has an effective duration of 3.48 years.
  • The ETF has a current yield of 6.41%.
  • The fund was launched March 12, 2014. [New Global Junk Bond ETF Debuts]
  • IJNK is relatively unchanged since its inception.
  • “Investors are unsure of how to replace the high-grade fixed income assets that were once the foundation of their portfolios,” James Ross, executive vice president and global head of SPDR Exchange Traded Funds at SSgA, said in a press release. “The SPDR Barclays International High Yield Bond ETF provides investors with another opportunity to diversify their high yield exposure.”

Next page: The latest news