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. SJNK has returned 1.20% year-to-date, 2.94% the past year and 3.76% the last three years.

While junk bond ETFs like JNK and SJNK have a higher degree of credit risk, it’s interesting to note that Bloomberg recently revealed that these ETFs are actually less volatile than the indexes they track.


Junk Bond ETFs Experience Uptick in Inflows, Volume 1

Interest in Short-Term Debt

Short-term corporate bond ETFs like the Vanguard Short-Term Corporate Bond ETF (NASDAQ: VCSH) also saw an uptick in activity. VCSH experienced $258.70 million in trading activity the past 24 hours, more than doubling the daily average volume of $124.68 million in trading activity.

VCSH tracks the performance of the Bloomberg Barclays U.S. 1-5 Year Corporate Bond Index–a market-weighted corporate bond index with a short-term dollar-weighted average maturity. In addition to VCSH allocating capital towards debt issues that are investment-grade, fixed-income investors will like the reduced exposure to duration with maturities between 1 and 5 years.

For more trends in fixed income, visit the Fixed Income Channel.

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