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Junk-Bond ETF Suffers $3.7 Billion Exodus With Election Looming

  • BlackRock’s HYG sees worst week since February selloff
  • Rising virus cases, expected volatility prompt ‘de-risking’

In the final countdown before the U.S. presidential election, exchange-traded fund investors are pulling out of junk bonds.

BlackRock Inc.’s $23 billion iShares iBoxx High Yield Corporate Bond ETF (HYG) had its worst week of outflows since the coronavirus-induced selloff in February, losing almost $3.7 billion, according to data compiled by Bloomberg. Meanwhile, the $6.5 billion Xtrackers USD High Yield Corporate Bond ETF (HYLB) posted its largest daily withdrawals on record.