Traders Dump $2.6 Billion in Junk-Bond ETFs Amid Virus Angst

JNK, HYG lead high-yield outflows as coronavirus cases soar
Investors are finding solace in higher-quality debt: Principal

A statue of Albert Gallatin, former U.S. Treasury secretary, stands outside the Treasury building in Washington, D.C.Photographer: Andrew Harrer/Bloomberg

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By Katie Greifeld

July 6, 2020 at 4:05 PM UTC

Updated on

July 6, 2020 at 6:34 PM UTC

This article is for subscribers only.

The surge in coronavirus cases has bond ETF investors shedding their riskier holdings in favor of the safety of U.S. government debt.

Over $2.6 billion exited from junk-bond exchange-traded funds last week, in addition to the $5.6 billion that fled from high-yield mutual funds. The $11 billion SPDR Bloomberg Barclays High Yield Bond ETF (JNK)’s $746 million outflow led the way, followed by a $609 million withdrawal from the $27 billion iShares iBoxx High Yield Corporate Bond ETF (HYG).