FYI: The spectacular growth of high-yield credit ETFs is likely affecting the cash bond market in any number of ways, but not by making it more volatile, a new study argues.
Swings in the market haven't grown any more dramatic since the financial crisis as trading and assets in junk-bond ETFs have swelled, according to Marty Fridson, chief investment officer at Lehmann Livian Fridson Advisors. In fact, in the seven years through 2017, junk ETFs were less volatile than the cash market itself, which works against the notion that fund jitters are feeding into the underlying assets.
Regards,
Ted
https://www.investors.com/etfs-and-funds/etfs/study-no-link-etfs-junk-bond-drama/
