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BlackRock Alums Debut First Junk ETFs Just as the Credit Cycle Turns

  • BondBloxx launches first batch of sector-specific junk funds
  • ETF startup sees volatility as fertile ground for new ETFs

BlackRock Inc. alumni bidding to shake up the world of junk-debt investing are launching their first slate of ETFs, just as money managers flee the industry’s biggest credit strategy at a record pace.

Seven exchange-traded funds from BondBloxx Investment Management that carve U.S. high-yield bonds into industries from telecom to energy begin trading on the NYSE Arca Thursday. It marks the first time investors can take bets on a whole sector in one consolidated trade -- and it’s landing in the midst of a rate-spurred exodus from risk assets.