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BlackRock Files Global High-Yield Bond ETF

tlydon@globaltrend.com (Tom Lydon)

BlackRock has filed paperwork with regulators to introduce a global high-yield bond ETF, an asset that has been popular with investors seeking income.

The ETF manager is planning the iShares Global ex USD High Yield Corporate Bond Fund, which would have an expense ratio of 0.55%, according to the filing.

The tracking benchmark is “a rules-based index consisting of high yield corporate bonds denominated in Euros, British pounds sterling and Canadian dollars,” according to the filing.

“High-yield bond ETFs have reported inflows of $6 billion this year, about 33% of the total volume of money flowing into funds that buy the notes this year,” according to Bloomberg News, which first reported on BlackRock’s junk bond fund filing.

Year-to-date, junk bond mutual funds and ETFs have garnered over $17 billion in new assets. [Are High-Yield Bond ETFs Overbought?]

The largest ETFs in the category include iShares iBoxx High Yield Corp Bond Fund ETF (NYSEArca: HYG) and SPDR Barclays Capital High Yield Bond ETF (NYSEArca: JNK).

As yields on traditionally safe Treasury bonds hover around historic lows, investors have turned to high-yield exchange traded funds to meet their income needs. [ETF Spotlight: High-Yield Bonds]

iShares iBoxx High Yield Corp Bond Fund ETF