There is also a highly liquid secondary market for the bonds found in SJNK and that that liquidity can actually increase even as volatility rises. Secondary market liquidity for SJNK’s holding actually increased when high-yield bond market volatility rose in September. http://www.etftrends.com/2014/10/a-shorter-road-may-be-better-for-junk-bond-etfs/
No bond ETF has surprised when it comes to recent inflows on par with the First Trust Enhanced Short Maturity Fund (NasdaqGM: FTSM). When ETF Trends became the first outlet to highlight FTSM on Nov. 3, prompting similar coverage from other outlets in the following days, the ETF had just $506 million in assets under management.
That alone was impressive, particularly when considering FTSM debuted in August. Today, the actively managed FTSM, with a weighted average effective duration of just 0.21 year, is home to nearly $1.7 billion in assets under management.
FTSM’s portfolio managers have the flexibility to strategically rotate among various market sectors while maintaining a focus on preservation of capital and liquidity, according to First Trust.
iShares Short Treasury Bond ETF
