ETF Snapshot: High yield ETFs only asset class to record outflows

€1.8bn outflows

High yield ETFs were the only asset class in the red among tracker funds in the week ending 12 January as investors rotated into high grade credit after US 10-year yields hit their widest level since 2014 on 19 January.

Investors' appetite for riskier debt disappeared during the week with developed high yield bonds posting €1.8bn in outflows, according to data from TrackInsight. BlackRock's iShares iBoxx $ High Yield Corporate Bond ETF saw $568m outflows on 18 January, the largest daily outflow since June, according to Bloomberg. Concerns over the potential for higher interest rates and a government shutdown in the US led 10-year Treasury yields to rise 2.4 basis points to 2.64% in intra-day trading last Friday, the highest point since September 2014. High yield and US large-cap ETFs suffer highes...