PMs should be aware of investors' rising appetite for junk bond ETFs, which are perceived as providing protection from rising rates and still offer high yields.

ETFs focused on short-term junk bonds, such as Pimco [profile] 0-5 Year High Yield Corporate Bond ETF, brought in $602 million since May, WSJ MoneyBeat reporter Chris Dieterich writes.

SPDR [profile] Barclays Short Term High Yield Bond ETF took in $318 million and while longer-term bond high-yield funds such as BlackRock [profile] iShares iBoxx $ High Yield Corporate Bond ETF had outflows of $1.4 billion since May. Though both types of junk bond ETFs lost money in the second quarter, the short-term junk bond ETF saw less drastic outflows, Dieterich writes.

To read more, click here. 

Edited by: Casey Quinlan


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