Credit risk remains low, with corporate default rates at 1.8%. The corporate bond market has experienced strong performance due to the falling yields in Treasuries and diminished inflation expectations this year.
LQD, the largest corporate bond ETF, has added nearly $981 million in new assets this year.
For more information on fixed-income market, visit our bond ETFs category.
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own shares of HYG and LQD.