Recent Risk-On Sentiment Spurs Interest in High Yield Bond ETFs 1“Investors are going to be a little more apprehensive” given recent volatility, said Mohit Bajaj, director of exchange-traded funds at WallachBeth Capital. “All of these funds have moved significantly in the past few weeks.”

High Beta High Yield Option

One fund to consider is the Xtrackers High Beta High Yield Bond ETF (NYSEArca: HYUP), which seeks investment results that correspond generally to the performance, of the Solactive USD High Yield Corporates Total Market High Beta Index. The underlying index is designed to track the performance of the segment of the U.S. dollar denominated high yield corporate bond market that exhibits higher overall beta to the broader high yield corporate fixed income market.

“The last two or three days have been very strong for the high-yield space,” said Jay Pestrichelli, co-founder and managing director of ZEGA Financial. “It’s not at all a clear signal by any means, but it certainly is — I think — a reduction in panic.”

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