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Last week's losses in high-yield were accompanied by sizable outflows from high-yield ETFs, with...

Last week's losses in high-yield were accompanied by sizable outflows from high-yield ETFs, with HYG losing $461M in assets and JNK $348M. Investors also pulled money from another hot sector, emerging markets bonds (EMB). All three are now posting losses YTD.
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Comments (5)
  • Dogpound
    , contributor
    Comments (148) | Send Message
     
    How do you pull money from markets? Is no one buying the stuff they are selling?
    4 Feb 2013, 11:59 AM Reply Like
  • petten
    , contributor
    Comments (128) | Send Message
     
    Guess price decline * share count = amount of money pulled out
    4 Feb 2013, 08:01 PM Reply Like
  • petten
    , contributor
    Comments (128) | Send Message
     
    Another shot at it:
    More sellers than buyers, so the ETF company buys back shares, therefore reducing shares outstanding and net money outflow.
    4 Feb 2013, 08:05 PM Reply Like
  • Dogpound
    , contributor
    Comments (148) | Send Message
     
    So when people buy HYG or JNK (Bond ETF's) the ETF company doesn't purchase actual bonds somewhere? Is that what you are suggesting. I guess the ETF company just pays the interest to the holder from good will or a suspense account.

     

    Are you one of those that thinks when 1000 shares of AAPL are bought that $44,500.00 of money just came off the sidelines? I am of the opinion that when someone buys 1000 shares of AAPL, someone just sold 1000 shares of AAPL, net result someone has gain or loss, no matter is created and someone has $44,500 off the sidelines and someone else now has $44,500 on the sidelines.
    5 Feb 2013, 09:35 AM Reply Like
  • redarrow5150
    , contributor
    Comments (1126) | Send Message
     
    You mean investors are pulling out maybe because they are possibly TAKING IN PROFITS?
    4 Feb 2013, 12:11 PM Reply Like
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