After the Federal Reserve stated it was standing pat for the time being in and riskier assets began to rally off the recent selling, U.S. corporate bond exchange traded funds saw their largest monthly inflows ever.
U.S. corporate debt-related ETFs saw $8.3 billion in inflows over October, reports Eric Balchunas for Bloomberg.
High-yield corporate bond ETFs took in the lion’s shares, attracting $5.6 billion and breaking their previous one-month record. The most popular junk bond ETFs include the iShares iBoxx $ High Yield Corporate Bond ETF (NYSEArca: HYG), which added $2.5 billion, and SPDR Barclays High Yield Bond ETF (NYSEArca: JNK), which brought in $2.7 billion.
Investors have largely been dumping debt-related ETFs this year, with junk bond ETFs experiencing half a billion in outflows until October.
Additionally, investment-grade corporate bond ETFs also booked a record $4.8 billion in inflows, led by iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSEArca: LQD), which took in $2.6 billion, its largest monthly inflow to date.