The incredible growth of the high yield asset class is evident through various product innovations such as high yield exchange traded funds (ETFs). Since their introduction in 2007, ETF assets have swelled to about $35 billion. The two largest, the iShares iBoxx $ High Yield Corporate Bond (HYG) and SDDR Barclays High Yield Bond (JNK) account for about two-thirds of the high yield ETFs outstanding. High yield ETFs are passively managed pools of high yield bonds designed to track an index, yet trade on exchanges, just like stocks. Their attributes include low fees, diversification, and intraday liquidity.
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