For example, thee iShares iBoxx $ High Yield Corporate Bond ETF (NYSEArca: HYG) and the SPDR Barclays High Yield Bond ETF (NYSEArca: JNK), the two largest high-yield corporate bond ETFs by assets, account for more than $25 billion in assets and 20 million shares traded per day.
Related: The King of Junk Bond ETFs
Since 2010, junk bond daily price volatility showed a mean of 2.28 for HYG and 2.52 for JNK, compared to the higher 2.55 recorded on the ICE BAML U.S. High Yield Index, according to a recent study. Fridson found that high-yield bond volatility has actually slipped over the period as ETFs gained in popularity, compared with the years leading up to the financial crisis from 2000 to 2007.
“The bottom line is that at this point there is no basis for stating that the advent of high-yield ETFs has increased the high-yield cash market’s volatility,” Fridson said in the study.
For more information on the fixed-income market, visit our bond ETFs category.