HY ETFs Gain in Popularity, Lose in Performance

Sheahan, Matthew
June 2011
High Yield Report;6/13/2011, p12
The article discusses the state of high yield bond exchange traded funds (ETFs) that have increased in popularity in 2011 with 8 ETFs taking in 2.2 billion dollars. SMB Capital Advisors indicated that the 2011 total average return for high yield ETFs is 5.63% which is lower than 11.94% in 2010. Publicly traded ETFs are volatile with a great poor performance risk than regular mutual funds. The article stated that flows into ETFs will not be steady especially if there are more bad economic news.


Related Articles

  • HY Fund Flows Surge to $1.48B in New Money. Fest, Glen // High Yield Report;10/16/2015, p1 

    The article discusses data for week of October 14, 2015 from mutual fund information and fund ratings company Lipper, that showed high yield (HY) bond funds taking in 1.48 billion dollars in new money, while investor net withdrawals were experienced by loan mutual and exchange-traded funds (ETFs).

  • Junk Bond Returns Below I-Grade. Sheahan, Matthew // High Yield Report;1/2/2012, p14 

    The article reports that junk bonds returns for 2011 averaged 2.9%, down from 15.2% in 2010 while investment-grade returns for the year was at 4.9% down from 7.4% for 2010, reportedly reflecting global volatility and economic jitters going into 2012.

  • Battle of the Betas. Israelsen, Craig L. // Financial Planning;Dec2014, Vol. 44 Issue 12, p85 

    The article discusses the use of term "smart beta" by companies to weigh components of the market. It mentions the "smart" beta products as equally weighted indexes, factor-weighted indexes and volatility weighted indexes. It adds portfolios created on the basis of a diversified model of 12...

  • Euro HY More Stable Than US: Fitch. Sheahan, Matthew // High Yield Report;9/1/2014, p9 

    The article focuses on the report published by rating agency Fitch Ratings in 2014 which revealed the stability of the European and U.S. high yield market. Topics covered include the exposure of American junk bonds to more volatile exchange-traded funds (ETFs), the reasons behind the low...

  • HY Funds Continue Positive Net Flow Trends. Sheahan, Matthew // High Yield Report;9/1/2014, p20 

    The article reports on the positive flows recorded for high yield bonds in 2014. Topics covered include the low impact of exchange-traded funds (ETFs) on junk bond funds, the value of high yield bond funds recorded for the week ended August 27 and the amount of the high yield fund outflows...

  • Another Week, Another $2B Out of HY. Lewis, Jakema // High Yield Report;1/21/2016, p1 

    Junk bond investors had another week of yanking assets from mutual funds and exchange-traded funds in the asset class. The same went for loans which saw the 26th consecutive week of withdrawals.

  • ETFs Shake Up High Yield Again. Sheahan, Matthew // High Yield Report;6/4/2012, p18 

    The article reports that exchange-traded funds (ETF) have caused volatility along with cash into the junk bond market. ETFs are reportedly attracting new money to the high yield market. On May 10, 2012, State Street Global's SPDR Barclays Capital High Yield Bond ETF experienced an in-kind...

  • High-yield ETFs pose volatility and pricing de-link risks, warns Fitch. Jackson, Gary // Fundweb;4/10/2012, p16 

    The article reports on Fitch Ratings Ltd. according to which the use of exchange-traded funds (ETFs) to track high-yield bonds could add to market volatility and de-link bond pricing from credit fundamentals. The rating agency states though high-yield bond ETFs have benefits like improved...

  • HY Funds See Record $4.6B Outflows. Sheahan, Matthew // High Yield Report;6/10/2013, p32 

    The article reports that outflows for high yield bond funds including exchange-traded funds reached 4.63 billion U.S. dollars for the week ended June 5, 2013.


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics