Those concerns are not stopping professional investors from adding to or initiating new positions in HYG and JNK.
Recently revealed 13F filings with the Securities and Exchange Commission show 441 filers owned a combined 104.8 million shares of HYG at the end of the fourth quarter, according to Whale Wisdom. That share count was up almost 26% from the end of the third quarter while 100 funds started new positions in HYG and 161 added to existing stakes in the ETF. The number of professional investors starting new positions in HYG in the fourth quarter was double the number that eliminated stakes in the ETF, according to Whale Wisdom.
The number of JNK shares owned by professionals filing 13Fs jumped 20.6% during the fourth quarter to 159.7 million shares while 68 funds added new positions in the ETF compared to 40 eliminating JNK stakes, according to Whale Wisdom.
SPDR Barclays High Yield Bond ETF
Tom Lydon’s clients own shares of JNK and HYG.