High-Yield Investors Moving Into Bank Loan ETFs

By
Devon Layne
November 14, 2012
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Investors are transitioning away from bond ETFs like the iShares iBoxx $ High Yield Corporate Bond (NYSEArca: HYG) and the SPDR Barclays High Yield Bond (NYSEArca: JNK) to venture into higher-yield bank loan ETFs, a sign the four-year-old junk bond rally is ending, according to an article on ETF Trends.

As a result, since the end of September, nearly $405.1 million has been placed into the PowerShares Senior Loan Portfolio (NYSEArca: BKLN), according to ETF Trends, which cited data compiled by IndexUniverse.

Also, over the past week, BKLN’s trading volume has increased by almost three times its average over the last six months, the article said, citing a Bloomberg report.

The bank loan niche is growing more competitive as Blackstone’s GSO Capital Partners and SSgA recently filed for their own takes on the sector. Also, keep an eye on the recently launched Pyxis iBoxx Senior Loan ETF (NYSEArca: SNLN), the ETF Trends report said.

For more information, visit ETFtrends.com.

ETF DAILY DATA

The bond funds 'HYG,' 'TLT' and 'JNK' added money on Wednesday, March 25, as total U.S.-listed ETF assets dipped just below $2.1 trillion.

A number of iShares funds, including the bond funds 'TLT' and 'HYG' paced the firm's issuer-leading inflows on Wednesday, March 25. Total U.S.-listed ETF assets meanwhile dipped to just below $2.1 trillion.

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