Are ETF investors missing a trick with high yield?

Attractive yields in government bonds and money market funds have led investors to shun high yield this year, however, are there still opportunities in the more esoteric parts of the bond market?

Theo Andrew


In a year where fixed income ETFs continue to attract strong inflows, high yield is one area investors have continued to shun.

Despite yielding over historical averages for the past 12 months, high yield – or junk bonds as they are commonly known – have remained out of favour in a rapidly changing macro backdrop, however, could there be signs of opportunity in the riskier asset class once more?“

"The asset class has performed extremely well because the macro background has been better than expected four or five months ago,” Boutaina Deixonne, head of euro investment grade and high yield at AXA Investment Managers, said.

For example, US high yield bonds offered a yield of 8.8%, as at 25 September, down on...

This article first appeared in ETF Insider, ETF Stream's monthly ETF magazine for professional investors in Europe. To read the full article, click here.


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