Junk-bond ETFs rise after Trump wins White House
Shares of exchange-traded funds that buy junk bonds were rising Wednesday, as investors demonstrated an appetite for riskier assets following Republican candidate Donald Trump’s victory in the race for U.S. president.
The SPDR Bloomberg High Yield Bond ETF was up 0.2% in afternoon trading, while the iShares Broad USD High Yield Corporate Bond ETF gained 0.1%, according to FactSet data, at last check. The funds, which buy corporate bonds that have below-investment-grade ratings, were up even as the broader fixed-income market sold off.
The iShares Core U.S. Aggregate Bond ETF was down 0.8% on Wednesday afternoon, as Treasury yields jumped and stocks rallied, according to FactSet data, at last check.