Junk ETF Volumes Signal Electronic Demand

Trading of exchange-traded funds that focus on junk bonds is soaring while volume in the underlying securities slumps as dwindling dealer holdings prompt investors to seek electronic platforms.

Volumes in the two biggest ETFs in June have climbed 22 percent above the six-month average while overall trading for the debt has sunk 9 percent. A record $1.67 billion of shares was traded may 31 in the funds from BlackRock and State Street, equivalent to 35 percent of the day’s total volume for U.S. junk debt.

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