Junk-Bond Fund Draws $622 Million as Negative Yields Go Global

  • HYG, the largest high-yield ETF, had a record month in June
  • ‘Fairly limited’ options push investors to junk debt: Samana

A pedestrian views a mobile device while walking along the Hudson River Waterfront Walkway.

Photographer: Michael Nagle/Bloomberg
Lock
This article is for subscribers only.

As investors await a Federal Reserve rate cut as soon as this month, yield-seekers are finding refuge in U.S. exchange-traded funds.

The $19 billion iShares iBoxx High Yield Corporate Bond ETF, known by its ticker HYG, took in more than $622 million on Friday, the largest addition to the fund in a month, data compiled by Bloomberg show. The latest interest in riskier corporate debt follows a pick-up in demand last month, when almost $3 billion poured into the ETF, delivering its best monthBloomberg Terminal of inflows on record.