A $10 Billion ETF Is Smashing Records Amid the Junk-Bond Binge

As negative yields engulf everything from Brazil’s state oil company to Hungarian sovereign debt to euro junk, investors are seeking refuge in high-yield bond ETFs, Bloomberg News reported. Europe-listed funds have attracted over 5 billion euros ($5.6 billion) since January, more than in any full year going back to at least 2010, according to data compiled by Bloomberg Intelligence. The largest exchange-traded fund tracking the debt -- BlackRock Inc.’s 8.5 billion-euro IHYG -- took in 640 million euros in the week ended July 5, smashing a record it set just two weeks before, the data show. “With interest rates falling globally, investors are searching for streams of income and finding them through high-yield products, given there are limited alternatives out there,” said Todd Rosenbluth, head of ETF and mutual fund research at CFRA Research. Read more