Investors Dump Junk ETF in Preparation for for Rate Hikes
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With interest rates all but assured to rise soon, investors are fleeing a popular exchange-traded fund that tracks short-term junk bonds.
The $2.4 billion iShares 0-5 High Yield Corporate Bond ETF, or SHYG, had more than $465 million of outflows on Wednesday, the most ever in a single day. But that was just part of the $1.5 billion that’s left the fund over the last two weeks, as deserting investors have yanked almost 40 percent of its assets since May 29.