High-Yield Investors Moving Into Bank Loan ETFs

By
Devon Layne
November 14, 2012
Share:

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.COM CHANNELS

Want to learn more about smart-beta ETFs? Check out our smart-beta guide, essentials library and ETF screener!

ETF DAILY DATA

'SPY' and 'VTI' led inflows on Friday, April 24, as total U.S.-listed ETF assets reached $2.172 trillion, a record.

'VTI,' 'BND' and 'VCIT' paced Vanguard's issuer-leading inflows on Friday, April 24, as total U.S.-listed ETF assets reached a record $2.172 trillion.

ETF.COM ANALYST BLOGS

By Olly Ludwig

Why is it that some human advisors seem less fond of foreign stocks than robo advisors?

By Dave Nadig

Buying and selling ETFs wisely means understanding the difference between being a buyer and a seller.

By Olly Ludwig

Saving the world as an eco-conscious investor is a tough row to hoe, but ETFs make it a bit easier.

By Olly Ludwig

If you’re puzzled by Israel’s relatively strong stock market performance, don’t forget you’re taking measure of a developed country.