Speculation is intensifying that the Federal Reserve will lower interest rates. It might do so by perhaps as much as 50 basis points, when it meets next month.
VanEck Fallen Angel High Yield Bond ETF focuses on high-yield bonds, particularly after credit rating downgrades for potential total return boost. ANGL has a strong performance history, low expense ratio, and diversified holdings, making it a buy for income investors. Potential downside risks include Federal Reserve policy errors leading to recession, impacting high-yield bond performance, and causing volatility.
Fallen angels are delivering decent performances on a year-to-date basis. They are outperforming investment-grade corporate bonds while keeping pace with traditional high-yield fare.