VanEck Fallen Angel High Yield Bond ETF (ANGL) is downgraded to 'Hold' due to historically tight BB spreads after a strong 2025 performance. ANGL's portfolio is 78% BB-rated bonds, emphasizing safer high yield, with sector concentration in consumer cyclical, basic materials, and technology. The ETF's 2025 total return exceeds 8%, but current risk/reward is unattractive as spreads are near historic lows, limiting further upside.
High-yield corporate bond ETFs provide investors with strong yields, albeit somewhat elevated credit risk. There are lots of high-yield bond ETFs available to investors. Some with higher yields, some with better performance track-records, some focusing on more niche areas of the market. A quick overview of five of these follows. ETFs include simple, cheap vanilla ETFs, smart beta ETFs, and those targeting niche, best-performing bonds.
ANGL invests in high-yield bonds that were formerly investment-grade, offering attractive yields but with elevated risk from recent downgrades. Large portfolio concentrations in Celanese and Nissan heighten risk, as further credit deterioration in these firms could significantly impact ANGL's performance. While ANGL offers a competitive 6.28% yield and low fees, alternative ETFs like FALN have outperformed with similar cost structures.
| - Industry | - Sector | - CEO | XSTO Exchange | US92189F4375 ISIN |
| US Country | - Employees | 28 Nov 2025 Last Dividend | - Last Split | - IPO Date |
This company is designed to provide investors with an opportunity to gain exposure to below investment-grade corporate bonds, which, importantly, were rated as investment grade at the time of their issuance. It aims to replicate the performance of its benchmark index by investing at least 80% of its assets in the bonds that make up the index. These bonds are characterized by their denominations in U.S. dollars, providing a focused investment platform for those looking to invest in the corporate bond market with specific credit rating dynamics. The fund's strategy highlights a targeted approach towards bonds that may offer higher yields compared to investment-grade bonds, reflecting a unique risk-reward ratio for investors.
The fund offers focused investment products and services centered around corporate bonds that have shifted from investment grade to below investment grade: