Still, investors have also shown a preference for short-duration high-yield offerings such as the SPDR Barclays Short Term High Yield Bond ETF (NYSEArca: SJNK). S&P Capital IQ rates SJNK marketweight.
SJNK and the rival PIMCO 0-5 Year High Yield Corporate Bond (NYSEArca: HYS) have seen impressive inflows this year as investors have departed longer duration junk ETFs such as the iShares iBoxx $ High Yield Corporate Bond ETF (NYSEArca: HYG). [Low Duration Junk ETFs in Focus]
SJNK has a 30-day SEC yield of 3.8% with a modified duration of 1.98 years. Nearly 79% of the ETF’s 461 holdings are rated BB or B, according to State Street data.
Speaking of lower duration ETFs, S&P Capital IQ has an overweight rating on the iShares Short Maturity Bond ETF (NYSEArca: NEAR). Proving just how much investors have craved short-duration ETFs, NEAR is just eight months old and already has $263.6 million in assets under management.
NEAR has a 30-day SEC yield of 1.1% and an effective duration of 0.83 years. The fund charges 0.25% per year.
SPDR Barclays Short Term High Yield Bond ETF
Tom Lydon’s clients own shares of BOND, TLT, HYG and LQD.