|Bid||28.37 x 900|
|Ask||29.52 x 800|
|Day's Range||29.46 - 29.57|
|52 Week Range||26.25 - 29.59|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.14|
|Expense Ratio (net)||0.35%|
As many look to fixed-income markets ahead, ETF investors may consider a strategy that could help enhance yield opportunities in a diversified bond portfolio. On the recent webcast, Why Not All High Yield ...
As a way to enhance a bond portfolio in a lower-for-longer yield environment, investors should consider a high-yield bond strategy that focuses on a segment of fallen angel bonds. On the upcoming webcast, ...
A version of this article previously appeared in the July 2019 issue of Morningstar ETFInvestor. Big exchange-traded funds get more than their fair share of attention. The largest 10% of U.S.-listed ETFs carried about 86% of all assets invested in such funds at the end of May 2019.
There's now estimated $17 trillion in negative-yielding debt floating around throughout the world, underscoring the point that some fixed income strategies aren't delivering the income investors are hoping. ANGL seeks to replicate as closely as possible the price and yield performance of the ICE BofAML US Fallen Angel High Yield Index (the “Fallen Angel Index”). The fund normally invests at least 80% of its total assets in securities that comprise the fund’s benchmark index.
While some are moving away from speculative-grade debt with lower credit ratings in a heightened risk-off environment, income-minded investors can still look to targeted junk bond exchange traded fund ...
“Adventurous” usually isn't a word used in relation to fixed income investing, but with Treasury yields tumbling in the U.S. and other major global central banks paring interest rates, it might require ...
Against the backdrop of lower interest rates in the U.S. and more than $14 trillion in negative-yielding debt around the world, fixed income strategies with with above-average yields, such as the VanEck Vector Fallen Angel High Yield Bond ETF (ANGL) , are all the more compelling in the current environment. ANGL seeks to replicate as closely as possible the price and yield performance of the ICE BofAML US Fallen Angel High Yield Index (the “Fallen Angel Index”). The fund normally invests at least 80% of its total assets in securities that comprise the fund’s benchmark index.
With the Federal Reserve remaining cautious on interest rates thus far, it might be dissuading investors from looking to safe-haven Treasuries or even bonds in general as a source of income. Wasmer Schroeder knows exactly what investors looking for and their strategies address the need to get strategic when it comes to their portfolios. "Generating a sustained, elevated level of income in this secular, low interest rate environment has been a challenge for our clients," wrote John Majoros, Director of Taxable Portfolio Management at Wasmer Schroeder in the latest "Asked and Answered" white paper.
One of the most active exchange-traded funds (ETFs) on Wednesday was the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) . The fund seeks to track the investment results of the Markit iBoxx® USD Liquid High Yield Index, which is a rules-based index consisting of liquid, U.S. dollar-denominated, high yield corporate bonds for sale in the United States. According to Scott Clemons, chief investment strategist at Brown Brothers Harriman, investors crave three things when it comes to fixed income assets: liquidity, stability and income--they can't have all three.
Whether it is an ETF dedicated to 5G, cannabis, electric vehicles or small-cap biotechnology stocks, there are a growing number of thematic funds on the market. Predictably, however, the vast majority of thematic ETFs are equity-based products.On the other hand, many of the largest fixed-income ETFs are basic in their approaches and methodologies, doing little more than offering income via cap-weighted avenues to government, corporate and municipal bonds.This is not surprising. While many of the best ETFs in the equity space are rooted in alternative methodologies and have been that way for some time, it was not until the past several years that bond funds appeared with unique ideas and narrower focuses.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks to Buy for Monster Growth While the universe of thematic bond funds still has plenty of room to expand, some of the best ETFs in the fixed income space have surprisingly narrow focuses. Here are some of the best ETFs for adventurous bond investors looking for higher levels of income and potentially stronger total returns. VanEck Vectors Fallen Angel High Yield Bond ETF (ANGL)Source: Shutterstock Expense ratio: 0.35% per year, or $35 on a $10,000 investment.The VanEck Vectors Fallen Angel High Yield Bond ETF (NYSEARCA:ANGL) is one of the best ETFs for junk bond investors to consider. ANGL is the largest and oldest ETF dedicated to fallen angels, those corporate bonds born with investment-grade ratings that are later downgraded to junk status. Fallen angels are not a new concept in the corporate bond universe and the idea of investing in these bonds is widely accepted in some circles, so ANGL is not a quirky thematic fund addressing an excessively narrow niche.For corporate-bond investors, ANGL has been one of the best ETFs in recent years. Over the past 36 months, the fallen angel fund is up 25.60%, beating the largest junk bond ETF by 600 basis points while offering better than double the returns of the biggest investment-grade corporate bond ETF. Additional data points support the idea of ANGL has one of the best ETF for long-term investors."Fallen angels have outperformed the broad high yield bond market in 11 of the last 15 calendar years," according to VanEck.Nearly 89% of ANGL's holdings are rated BB and B. VanEck Vectors Green Bond ETF (GRNB)Source: Shutterstock Expense ratio: 0.30%The VanEck Vectors Green Bond ETF (NYSEARCA:GRNB) is one of the best ETFs for bond investors looking to express environmental virtue and this fund fits the bill as a thematic because green bonds are a small but growing sliver of the massive bond market.While some thematic funds have complex underlying investment objectives, GRNB is one of the best ETFs in the thematic fixed income arena because it is easy for investors of varying skill levels to understand. Put simply, green bonds are debt issued by companies and governments to finance environmentally friendly projects. * Ranking the Top 10 Stock Buybacks of Last Year GRNB is also one of the best ETFs for conservative fixed-income investors because the fund is not high-yield and its credit risk is relatively benign. This bond fund has an effective duration of 6.41 years and over two-thirds of its 188 holdings are rated AAA, AA or A. Inspire Corporate Bond Impact ETF (IBD)Source: Shutterstock Expense ratio: 0.61%For investors looking for a religious-based approach to bonds, the Inspire Corporate Bond Impact ETF (NYSEARCA:IBD) is one of the best ETFs. In fact, IBD, which debuted nearly two years ago, is the first faith-based fixed income ETF."IBD invests in higher credit quality, investment grade fixed income securities of some of the most inspiring, biblically aligned large companies in the United States, as measured by the companies' Inspire Impact Score," according to the issuer.This fund only invests in investment-grade issues from companies with market values of at least $5 billion. Additionally, the issuer donates half the management fees from IBD to various causes, which last year included pro-life groups, baby rescue missions and Syrian refugee groups.With nearly $113 million in assets under management, IBD has been one of the best ETFs in the niche bond fund space in terms of being a pleasant surprise regarding its ability to add assets. The fund holds almost 170 bonds and yields over 3%. Xtrackers Municipal Infrastructure Revenue Bond ETF (RVNU)Source: Shutterstock Expense ratio: 0.15%It is somewhat of a stretch to call the Xtrackers Municipal Infrastructure Revenue Bond ETF (NYSEARCA:RVNU) a thematic fund, but is one of the best ETFs for investors looking for a refreshed approach to traditional municipal bond funds.While many municipal bond funds focus on a variety of muni debt, RVNU is dedicated solely to infrastructure revenue bonds. That may not seem like a positive trait when the economy is good, allowing many states to obfuscate badly underfunded public pension plans, but in the event of another recession, concerns about the shaky ground on which state pension plans reside are likely to resurface. * 10 Heavily Shorted Stocks to Sell -- Because the Bears Are Right That is bad news for general obligation debt, which could be downgraded if states' finances deteriorate, but RVNU does not hold general obligation bonds. Credit risk is minimal with this fund as highlighted by about 92% of its issues carrying AAA, AA or A ratings. RVNU yields nearly 25 basis points more than the largest traditional municipal bond ETF. Cambria Sovereign Bond ETF (SOVB)Source: Shutterstock Expense ratio: 0.59%The Cambria Sovereign Bond ETF (CBOE:SOVB) is one of the best ETFs for investors looking for a wide-ranging approach to sovereign debt. Many bond funds do not mix developed and emerging markets bonds, but SOVB is geographically agnostic.Rather than adhering to geographic borders, SOVB's objective is simple: "the strategy seeks the most attractively priced debt securities from a global opportunity set," according to Cambria.At the end of the first quarter, eight of SOVB's top 10 country exposures were emerging markets, but some of that risk is mitigated by exposure to AAA-rated U.S. and Australian bonds. Nearly 84% of SOVB's holdings have maturities of less than five years or five to 10 years.SOVB is also one of the best ETFs for investors looking for active management, which can work in the global bond arena. An actively managed fund such as this can look for better credit or duration opportunities as well as ditch bonds from countries with deteriorating credit quality.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for Monster Growth * Ranking the Top 10 Stock Buybacks of Last Year * 5 Stocks Under $10 With Big Upside Potential Compare Brokers The post 5 Thematic ETFs for Fixed-Income Investors appeared first on InvestorPlace.
According to Scott Clemons, chief investment strategist at Brown Brothers Harriman, investors crave three things when it comes to fixed income assets: liquidity, stability and income--they can't have all three. 1. Invesco BulletShares 2025 High Yield Corporate Bond ETF (BSJP) - Up 9.63%: seeks to track the investment results (before fees and expenses) of the Nasdaq BulletShares® USD High Yield Corporate Bond 2025 Index (the "underlying index"). The fund generally will invest at least 80% of its total assets in securities that comprise the underlying index.
Heading into this year, many bond market observers were concerned about the state of BBB-rated corporate debt and how much of that debt could be downgraded to junk, turning those bonds into fallen angels. ...
Will We See More 'Fallen Angels' in 2019?(Continued from Prior Part)VanEck A Thoughtful Exclusion We believe the indexer has exercised discretion with regard to the index rules in a thoughtful and prudent manner. That is not to say the bonds in
Will We See More 'Fallen Angels' in 2019?(Continued from Prior Part)VanEck From Fallen to “Failing” One such situation occurred this month as a direct result of the very tragic wildfires that struck California over the last two years. Pacific Gas
Will We See More 'Fallen Angels' in 2019?VanEck The cautionary advice to “expect the unexpected” makes a lot of sense for investors—at least in the sense that we should all learn to manage our own expectations by realizing there are outcomes we