5 Bond ETFs Suffering The Biggest Outflows

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Includes: FTSM, HYG, IEF, JNK, SHV, TLT
by: Lipper Insight at Thomson Reuters

By Jeff Tjornehoj

After starting the year with a good January rally, the U.S. Treasury bond market has been under selling pressure. Yields on the ten-year Treasury note touched a 2015 low of 1.68% on January 30 before climbing 38 basis points to 2.06% at the end of April. Since then, selling pressure has intensified and the ten-year yield has jumped 32 basis points more in the five weeks to June 3. We looked at the five fixed income ETFs with the highest cumulative outflows since the end of April, and not surprisingly three of them (the iShares 7-10 Year Treasury Bond ETF (NASDAQ:IEF), the iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT), and the iShares Short Treasury Bond ETF (NASDAQ:SHV)) are Treasury products. But the other two are quite different: the iShares iBoxx $ High Yield Corporate Bond ETF (NYSEARCA:HYG) has accumulated over $1 billion more of outflows than its close peer the SPDR Barclays Capital High Yield Bond ETF (NYSEARCA:JNK), and investors are souring on actively managed the First Trust Enhanced Short Maturity ETF (NASDAQ:FTSM), which has seen its assets chopped nearly two-thirds since the end of January. This past week $120 million was pulled from FTSM, taking its assets below $500 million.