NEW YORK ( ETF Digest) -- Junk bond ETFs have seen record inflows of investor money over the past year, growing as much as 68%, but investors may not be aware of the substantial risks that junk bond investments pose.There are a number of reasons for this massive influx of cash, not least of which is the reluctance many investors feel about putting money back into the stock market after getting burned in the recent financial crisis. With U.S. Treasury bond yields at historic lows, held down by continuing low interest rates from the Fed, many investors, particularly aging baby boomers, are turning to junk bonds and junk bond ETFs for extra returns.
How Junk Bonds Got Their Name
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.