Is The Drop In High Yield ETFs A Big Deal?
Much ado about nothing. That is how I see it playing out in the high yield space.
The iShares IBOXX High Yield Corporate Bond Fund ETF (HYG) has dropped -2.27% since October 20th. Meanwhile a less volatile peer is the Powershares Fundamental High Yield Corporate Bond ETF (PHB) which has fallen -1.57%.
Clearly, the drop is tied to the financials dropping in the same period. The SPDR Regional Banking ETF (KRE) has fallen -2.91%. Hardly, epic.
Earlier this year HYG fell -2.52% from late February to Mid March. No one was freaking out then and still not sure why they are now.