This is a graph of the shares outstanding of the JNK ETF. The HYG ETF chart looks similar. There is a long term shift into fixed income ETF’s. As I have written about before, it is the easiest time ever to allocate assets to fixed income, and shift assets within the fixed income allocation. The ETF’s have played a large role – some would argue too large a role, as “ETF bonds” are sometime seen to trade at a premium or discount to similar bonds that aren’t as well represented in ETF’s. Actively managed portfolios have also seen inflows, and the best should be able to beat ETF’s, especially if the distortions discussed are true, and they can get some new issues. The meteoric rise in shares outstanding since the start of the year, may finally be taking a breather.