The iShares iBoxx $ High Yield Corporate Bond Fund (NYSE:
), the largest ETF that tracks junk bonds, saw outflows of almost
$219 million on Tuesday. Perhaps that is a sign that investors
are taking profits in high-yield bonds and the corresponding
a scenario Benzinga reported was at play almost
The five-largest junk bond ETFs have lost $1.97 billion in
assets since September,
according to Bloomberg
. However, the focus on HYG and its rival, the SPDR Barclays High
Yield Bond ETF (NYSE:
) underscores a familiar theme in the ETF universe.
That being the implication that only the largest funds
tracking a particular asset class matter. With HYG and JNK, this
is understandable given that the two ETFs combined for over $28.3
billion in assets under management at the start of trading
Wednesday. Understandable, but not excusable. Not excusable
because by focusing on HYG and JNK, missed is the fact that
inflows to other junk bond ETFs have been impressive. This
scenario was reported on
in late September
Nitpicking about $219 million departing from HYG, which had
over $16.5 billion in AUM at the start of Wednesday's session,
means glossing over a stellar run of asset gathering for the SPDR
Barclays Short Term High Yield Bond ET (NYSE:
). SJNK, JNK's short duration cousin, had $289 million in AUM on
September 21. As of November 13, that number was $433.1 million,
according to State Street data
More impressive have been the AUM gains spotted at the Market
Vectors International High Yield Bond ETF (NYSE:
). IHY, which debuted in early April, has easily crossed the much
ballyhooed $100 million in AUM mark. In fact, IHY had $180.7
million in assets as of Tuesday. That means that since late
September, IHY has grown its AUM total by nearly nine-fold.
When it comes to high-yield bond ETFs with prodigious
asset-gathering talents, the PowerShares Senior Loan Portfolio
) cannot be overlooked. BKLN's AUM chart, in words, would be
explained like this: Less than $600 million in AUM in July to
$927 million at the end of September. That $927 million turned to
nearly $1.2 billion
at the end of October
. Today, the fund has $1.32 billion in AUM.
Clearly, the data support the fact assets have departed HYG.
However, that does not mean assets are leaving all junk bond
ETFs. The data say that just is not the case.
For more on junk bond ETFs,
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