VanEck Fallen Angel High Yield Bond ETF (ANGL)
The Largest Bond ETFs Are Good, But These ETFs Are Better
The largest bond ETFs are almost exclusively index funds focusing on the broader bond market, or on specific bond sub-asset classes. These ETFs are reasonable investments, but investors can do much better than reasonable. Lots of ETFs offer higher yields, returns, and risk-adjusted returns than these larger ETFs, with extra advantages to boot.
ANGL: Attractive Now, But Probably Not For The Long Term
VanEck Fallen Angel High Yield Bond ETF holds below investment grade bonds initially rated investment grade, offering a 6.32% SEC yield. ANGL has outperformed other high-yield bond ETFs over the past decade, but its price has lagged behind inflation and distribution shows an 8% decay. Competitor iShares Fallen Angels USD Bond ETF has recently outperformed ANGL.
Junk Bonds Have a ‘Fallen Angel' Problem
A strong economy and falling interest rates have been a great combination for investors in high-yield bonds.
Undercovered ETFs You Should Know About: 12 Analysts' Picks From August-September 2024
The 'Undercovered' Dozen ETF edition highlights less covered ETFs, focusing on seven in-depth analyses and five brief mentions, from articles published between August 15th and September 16th. The Invesco Russell 1000 Dynamic Multifactor ETF (OMFL) has shown volatility but is stabilizing; patience is advised by The Sunday Investor as its high-quality selections might perform well. The SPDR Portfolio S&P 500 High Dividend ETF (SPYD) offers a 4.07% yield but lacks complexity according to MacroGirl; consider alternatives like PEY.
ANGL: I Can't Believe I'm Writing 'I Like This Junk Bond ETF'
I have been a high-yield bond skeptic for nearly 30 years, but recently initiated a small position in this "fallen angels" high-yield bond ETF. Fallen angels refer to bonds that were once investment grade but have been downgraded to junk status. ANGL fits my proprietary YARP™ methodology, which is typically applied to stocks but works for many ETFs as well. I see potential for total return and a contrarian buying opportunity.
Precise Exposure of Fixed Income ETFs
While ETF popularity continues to grow, education remains key. Some advisors and investors use ETFs along with mutual funds or individual securities.
These Bonds Could Outperform Following Rate Cuts
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.
ANGL: Why I Just Started Buying This 7% Yielding Bond ETF
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.
How Retail Bonds Are Shaping Fallen Angels Landscape
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.
