HYG credit breakdown includes some low investment-grade quality BBB-rated bonds 5.0% but the majority is in speculative-rated debt, including BB 49.9%, B 29.8%, below B 11.8% and not rated 3.5%. JNK credit breakdown includes BBB 1.22%, BB 3.9%, B 43.8% and CCC or lower 19.1%.

However, some observers are less optimistic. According to BlackRock, about 21% of outstanding shares in HYG are short bets, or bets the price will fall. [Traders Pay up to Short Junk Bond ETFs]

iShares iBoxx $ High Yield Corporate Bond ETF

For more information on speculative-grade debt, visit our junk bonds category.

Max Chen contributed to this article.

Full disclosure: Tom Lydon’s clients own shares of JNK and HYG.

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