Robust liquidity and the secondary market are advantages for high-yield corporate bond ETFs, such as the SPDR Blmbg BarclaysST HY Bd ETF (NYSEArca: SJNK).
Related: Signals from the U.S. Yield Curve
SJNK seeks to provide investment results that correspond generally to the price and yield performance of the Bloomberg Barclays US High Yield 350mn Cash Pay 0-5 Yr 2% Capped Index. SJNK invests its total assets in the securities comprising the index, which is designed to measure the performance of short-term publicly issued U.S. dollar-denominated high yield corporate bonds.
“ETFs’ robust secondary market means investors can tap into market liquidity more easily than with single-CUSIP bond holdings to reallocate portfolios quickly across asset classes or meet investor redemptions by selling an ETF position into the market without having to sell single-CUSIP bonds,” said SSgA.
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