Bartolini and Goode will also highlight the SPDR Barclays Short Term High Yield Bond ETF (NSYEArca: SJNK), one of the premier ETFs for rate-conscious advisors looking to stay invested in high-yield debt even if rates do rise.
The recent retrenchment in U.S. stocks has forced junk spreads higher, but it cannot be overlooked that Moody’s Investors Service has pointed out that default rates remain low, with 1.85% of U.S. junk-rated companies defaulting in the year ended Aug. 31, compared to 14.1% at the end of 2009. [A Shorter Road may be Better for Junk Bond ETFs]
Importantly, SJNK’s holdings are highly liquid on the secondary market and the ETF’s duration of just 2.5 years is well below that of traditional high-yield ETFs.
Speaking of low duration, Tuesday’s attendees to Tuesday’s webcast will also learn about the SPDR Barclays Short Term Corporate Bond ETF (NYSEArca: SCPB), which has a duration of less than 1.9 years.In terms of credit quality, SCPB truly is a high-grade option with over 57% of its 990 holdings carrying ratings of Aa or A.
Financial advisors who are interested in learning more about investing in a different of approaching bond ETFs can register for the Tuesday Oct. 21 webcast here.