“With solid macro momentum in the third quarter, strong earnings guidance and without aggressive Fed hikes causing an abrupt end to the current expansion, we continue to favour high-yield corporates that are cyclically attractive,” JPMorgan strategist Lixin Bao said, the Financial Times reported.
Among the most popular ETF trades over the past week, the iShares iBoxx $ High Yield Corporate Bond ETF (NYSEArca: HYG) has seen $626.7 million in net inflows while the iShares iBoxx $ Investment Grade Corporate Bond ETF (NYESArca: LQD) added $580.6 million, according to XTF data. HYG comes with a 4.58% 30-day SEC yield and LQD shows a 3.20% 30-day SEC yield.
Investors interested in other high-yielding corporate debt exposures can also look to various ETF options, including the SPDR Barclays High Yield Bond ETF (NYSEArca: JNK), which has a 4.98% 30-day SEC yield; Deutsche X-trackers USD High Yield Corporate Bond ETF (HYLB); AdvisorShares Peritus High Yield ETF (NYSEArca: HYLD), which has a 7.23% 30-day SEC yield; and the VanEck Fallen Angel High Yield Bond ETF (NYSEArca: ANGL), which has a 4.85% 30-day SEC yield.
For more information on the credit market, visit our bond ETFs category.