October a Banner Month for Bond ETFs | Page 2 of 2 | ETF Trends

Investors have been snatching up speculative-grade, high-yield bond ETFs on the cheap after the sell-off pushed spreads over benchmark Treasuries close to historical averages.

Institutional investors have also been stepping back into other popular corporate bond ETFs this quarter. The iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSEArca: LQD) has added almost $643 million in new assets while the SPDR Barclays High Yield Bond ETF (NYSEArca: JNK) and the SPDR Barclays Short Term High Yield Bond ETF (NYSEArca: SJNK) have added a combined $916 million this quarter. [Junk Bond ETFs in Style Again]

Chart Courtesy: BlackRock

Tom Lydon’s clients own shares of HYG, JNK and LQD.