Wall Street Journal columnist Jason Zweig is warning junk bond enthusiasts to think twice before investing in junk bonds, especially junk bond exchange traded funds. In addition to the junk bonds themselves being overbought, the exchange traded funds that own them trade at a premium over the net asset value of the junk bonds. When you add the expense ratio to the premium, investors are now paying 2 percent more than the current value of the bonds. All of this means that, if investors start to dump junk bonds, the ETFs will decline about three times more than the underlying bonds. “‘Junk’ ETFs: Tread Lightly,” Wall Street Journal).