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ETF And Conventional Fund Investors Turn Their Backs On High Yield Funds For The Week

Published Sat, 03 Oct 2020 08:06:36 -0400 on Seeking Alpha

Seeking AlphaETF AnalysisETF And Conventional Fund Investors Turn Their Backs On High Yield Funds For The WeekOct. 3, 2020 8:06 AM ET|| Includes: HYG, TLTby: Tom RoseenTom Roseen Mutual fund analyst, Research Analyst, ETF investing, CEFsLipper Alpha Insight.cls-1{fill:#024999;}SummaryBond funds (including ETFs) witnessed their first week of net outflows in 25 for the Refinitiv Lipper fund-flows week ended September 30, 2020.
In the high yield funds space, both conventional high yield funds (-$2.5 billion) and high yield ETFs (-$1.1 billion) witnessed net redemptions.
Exchange-traded funds have been the primary attractors of investors' assets in 2020 thus far.
Bond funds (including ETFs) witnessed their first week of net outflows in 25 for the Refinitiv Lipper fund-flows week ended September 30, 2020, handing back a net $1.1 billion. While investors continued to inject net new money into corporate investment-grade debt funds (+$2.1 billion), they were net redeemers of corporate high yield funds (-$3.6 billion) and flexible funds (-$808 million).

With the U.S. equity market witnessing declines over the preceding few weeks, it's not too surprising to see equity funds and high yield bond funds suffer net redemptions. However, equity funds only handed back a net $32 million for the fund-flows week (for their seventh consecutive week of net outflows), with conventional equity funds suffering net redemptions of $5.024 billion and equity ETFs attracting some $4.992 billion. For the fund-flows week, the average equity fund returned a handsome 3.17%.
However, in the high yield funds space, both conventional high yield funds (-$2.5 billion) and high yield ETFs (-$1.1 billion) witnessed net redemptions as concerns over credit quality, soft economic data, and a call by the Federal Reserve Board for an additional round of Congressional stimulus have some investors beginning to shun risky assets despite the average high yield fund posting a weekly return of 0.37%.... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
ISHARES IBOXX $ HIGH YIELD CORPORATE BOND FUND 87.32   0.0 0.00 4.60 5.27

ISHARES IBOXX $ HIGH YIELD CORPORATE BOND FUND - HYG
ISHARES IBOXX $ HIGH YIELD CORPORATE BOND FUND - HYG  


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