|Bid||25.99 x 1300|
|Ask||26.00 x 800|
|Day's Range||25.96 - 26.01|
|52 Week Range||24.34 - 26.23|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.61|
|Expense Ratio (net)||0.15%|
The world of fixed-income exchange-traded funds (ETFs) is often visited by investors looking to bolster their income streams, diversify away from equities and add some assets with the potential to reduce portfolio volatility.Many investors look to accomplish those objectives with U.S. government debt, which features essentially no credit risk, or investment-grade domestic corporate bonds. The latter asset class gives investors the ability to take advantage of credit opportunities with the potential to generate higher returns than those offered by U.S. Treasuries.Fixed income investors willing to take on more risk in search of higher yields and potentially loftier returns often turn to high-yield corporate debt and junk bond ETFs. After trading lower last year amid four interest rate hikes by the Federal Reserve and concerns that some credit downgrades could increase this year, the two largest junk bond ETFs are up an average of 9% year-to-date, an advantage of nearly 400 basis points over the Bloomberg Barclays Aggregate Bond Index.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSome data points bode well for junk bond ETFs. * 7 Stocks to Buy for the Coming Recession "That more upbeat forecast is reflected in the corporate bond market," according to BlackRock. "Credit spreads, which is the extra yield (above Treasury yields) demanded on riskier corporate bonds, usually increase before recessions or market downturns. Yet today, credit spreads are still below-average and have been declining since the beginning of the year."Consider getting into high-yield corporate bond space with the following junk bond ETFs. Junk Bond ETFs to Buy: SPDR ICE BofAML Broad High Yield Bond ETF (CJNK)Expense Ratio: 0.15% per year, or $15 on a $10,000 investment.The fee wars so prominent in the fund universe long ago made their way to the junk bond ETF space, and the SPDR ICE BofAML Broad High Yield Bond ETF (NYSEARCA:CJNK) has been part of that trend. For almost seven years, CJNK was configured as a different type of bond ETF, but earlier this year, it was reconfigured as a cost-effective junk bond ETF.There have some nascent signs of investors matriculating to this junk bond ETF, but that pace could gain steam because CJNK has a lot of what investors are looking for. Notably, CJNK has a deep bench of nearly 1,100 holdings and it is one of the cheapest funds in this particular fixed-income category.CJNK has an option-adjusted duration of 3.5 years and the average maturity of its holdings is 5.87 years. The fund has a 30-day SEC yield of 6.4%. VanEck Vectors High-Yield Municipal Index ETF (HYD)Expense Ratio: 0.35%For the most part, municipal bonds are territory frequented by conservative investors, but the VanEck Vectors High-Yield Municipal Index ETF (NYSEARCA:HYD) is one avenue for adventure, sort of, in this corner of the fixed-income space. HYD's 30-day SEC yield of 3.65% is not the stuff of typical junk bond ETFs, but it is about 170 basis points above the comparable yield on the investment-grade S&P National AMT-Free Municipal Bond Index.While HYD is not the typical junk bond ETF, it offers some perks relative to other funds in this arena that are dedicated to corporate bonds."The tax-exempt status of high-yield municipal bonds provides a compelling risk/reward profile. Returns in other asset classes may have been attractive, but they come with both headline risk and volatility," said VanEck in a recent note. "The strong results for muni investors, and especially high yield muni investors, in the first quarter of 2019 are not only welcome, but also an affirmation of how important municipal bonds are to the core strategy of constructing an individual portfolio." * 7 Dark Horse Stocks Winning the Race in 2019 About 60% of HYD's nearly 2,000 holdings are rated BBB, BB or B. VanEck Vectors Emerging Markets High Yield Bond ETF (HYEM)Expense Ratio: 0.40%As has been widely noted, emerging markets stocks have had a rough go of things in recent months due to increased trade hostilities between the U.S. and China. However, emerging markets bond funds are holding up pretty well. The largest such ETF, which is comprised primarily of investment-grade debt, is higher by 9.5% year-to-date, representing a significant advantage over the MSCI Emerging Markets Index.The VanEck Vectors Emerging Markets High Yield Bond ETF (NYSE:HYEM) is no slouch, either. This junk bond ETF is up 5.3% year-to-date.Obviously, a junk bond ETF dedicated to debt issued in developing economies is going to be riskier than a domestic equivalent, but HYEM compensates investors for that risk with a 30-day SEC yield of 6.93%."Investors that include emerging markets corporate bonds within their fixed income portfolio may gain exposure to favorable long-term growth trends in emerging markets," wrote Fran Rodilosso, head of Fixed Income ETF Portfolio Management at VanEck. "They may also potentially earn attractive yields and add diversification to a corporate bond portfolio. From a portfolio construction perspective, we believe that focusing on the high yield segment of this market may be a better option compared to a broad exposure that includes both investment grade and high yield securities."Over 89% of HYEM's 547 holdings are rated BB or B. Invesco Global Short Term High Yield Bond ETF (PGHY)Source: Shutterstock Expense Ratio: 0.35%The Invesco Global Short Term High Yield Bond ETF (NYSEARCA:PGHY) is a junk bond ETF with two perks. First, the fund helps investors diversify away from U.S. debt with exposure to nine countries in addition to the U.S. Second, PGHY keeps interest rate risk to a minimum with an effective duration of just 1.15 years.Of PGHY's nine ex-U.S. geographic weights, seven are emerging markets, including China, Turkey and Brazil. This junk bond ETF is home to mostly corporate debt, over 37% of which is issued by financial services and consumer discretionary companies. * 7 Stocks to Buy As They Hit 52-Week Lows About 72% of PGHY's holdings are rated BBB, BB or B and while this junk bond ETF has a small allocation to speculative CCC-rated debt, it yields 6.43%, indicating there is adequate compensation for its international exposure. ProShares High Yield--Interest Rate Hedged (HYHG)Expense Ratio: 0.5%As its name implies, the ProShares High Yield--Interest Rate Hedged (CBOE:HYHG) is a junk bond ETF designed to offer some buffer from rising interest rates. With rates not expected to rise this year and with some bond market observers speculating the Federal Reserve could even lower borrowing costs, the case for a junk bond ETF like HYHG appears to be diminished.Actually, the opposite is true. IGHG is still up more than 5% this year, indicating there is still some reward for investors looking to prepare for a potential unforeseen reversal in Fed policy.Even with the benefit of the interest rate hedge, HYHG does not skimp on yield, as highlighted by its 30-day SEC yield of 5.96%. This may not be the junk bond ETF to buy right now, but it makes sense to be prepared and at least keep HYHG on your personal bond ETF watch list.As of this writing, Todd Shriber did 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 the Coming Recession * 10 Smart Dividend Stocks for the Rest of the Year * 5 Tech Stocks That Are Far Too Risky Right Now Compare Brokers The post 5 Junk Bond ETFs for Bold Bond Investors appeared first on InvestorPlace.
In the world of exchange-traded funds (ETFs), equity funds are the dominant group, but advisors and investors are increasingly willing to fill out the fixed income portions of their portfolios with bond ETFs. Last year, nearly bond ETFs set an inflows record, capturing nearly a third of all U.S. ETF inflows.Bond ETFs are on a torrid asset-gathering pace again in 2019. Year-to-date, five of the top 10 ETFs in terms of new assets added are bond ETFs and investors' pensiveness on the rise, bond ETFs could continue packing on new assets over the coming months.Adding to the case for bond ETFs, particularly those with long durations, is that the Federal Reserve appears likely to hold off on raising interest rates this year. Some bond market observers are even speculating that an interest rate cut could occur later this year. While it may be prudent to expect an interest rate cut, even if the Fed simply stands pat on rates, that could benefit a slew of bond ETFs.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Dividend Stocks to Buy as the Trade War Reignites For investors looking for safety plays or to boost their income streams, here are some bond ETFs to consider. Bond ETFs: WisdomTree Yield Enhanced U.S. Short-Term Aggregate Bond Fund (SHAG)Expense Ratio: 0.12% per year, or $12 on a $10,000 investment.The WisdomTree Yield Enhanced U.S. Short-Term Aggregate Bond Fund (CBOE:SHAG) is a bond ETF for investors to consider if, for some reason, the Fed surprisingly reverses course and decides to raise rates again because SHAG has an effective duration of just 2.65 years. Lower duration bond ETFs are less sensitive to changes in interest rates, explaining why so many of these bond ETFs were popular in 2018 when the Fed boosted borrowing costs four times.SHAG's 30-day SEC yield of 2.73% is decent when considering investors are not incurring much risk with this bond ETF. That yield is boosted by a 55.37% weight to corporate bonds, while the rest of SHAG's holdings are U.S. government and agency debt. That means credit risk is mostly low with this fund, as highlighted by more than 40% of SHAG's holdings carrying AAA ratings. None of SHAG's holdings carry junk ratings.While it appears unlikely interest rates will rise, SHAG still merits consideration over the near-term due to its conservative posture and steady income stream. SPDR ICE BofAML Broad High Yield Bond ETF (CJNK)Expense Ratio: 0.15%Cheap ETFs are available in all shapes and sizes and that includes junk bond funds. In fact, the SPDR ICE BofAML Broad High Yield Bond ETF (NYSEARCA:CJNK) was recently converted into one of the least expensive junk bond ETFs on the market after being a different kind of corporate bond fund. While many investors think of junk bonds as risky, this asset class is suitable for myriad portfolios and investment objectives."High yield is an asset class that should be at the center of any income-generating portfolio, just by virtue of it carrying a yield 63% higher than that of the combined yield of global aggregate bonds and global equities, on average, over the past 20 years," according to State Street research. * 7 Cloud Stocks to Buy on Overcast Days CJNK has an option-adjusted duration of 3.61 years and holds over 1,000 junk bonds. This low-cost bond ETF has a 30-day SEC yield of 6%. VanEck Vectors Green Bond ETF (GRNB)Expense Ratio: 0.3%For investors looking to implement socially responsible investing principles in the fixed income portions of their portfolios, the VanEck Vectors Green Bond ETF (NYSEARCA:GRNB) is a bond fund to consider. A simple definition of green bonds is that these bonds are issued to finance environmentally friendly projects.GRNB's underlying index "is comprised of labeled green bonds that are issued to finance environmentally friendly projects, and includes bonds issued by supranational, government, and corporate issuers globally in multiple currencies," according to VanEck.Many issuers of green bonds are large, developed market governments, meaning GRNB's credit risk is low. About two-thirds of the fund's 188 holdings are rated AAA, AA or A. GRNB has a duration of 6.45 years. The green bond market is expected to grow exponentially in the years ahead."The first quarter of 2019 saw a welcome boost in green bond supply, totaling over $40 billion, which is up approximately 46% versus the same period one year ago," said VanEck in a recent note. "North American issuance was up approximately 30%, with green bonds from first time corporate issuers including Verizon and Citigroup as well as repeat issuance from companies such as Duke Energy and MidAmerican Energy." Schwab Short-Term U.S. Treasury ETF (SCHO)Source: Shutterstock Expense Ratio: 0.06%The Schwab Short-Term U.S. Treasury ETF (NYSEARCA:SCHO) is a bond ETF for conservative, cost-conscious investors. As its name implies, SCHO holds Treasuries, so there is essentially no credit risk with this fund."Indexing Treasuries in this way is a sound approach for exposure to a specific portion of the yield curve," said Morningstar in a recent note on SCHO. "It is difficult for active managers to recoup their fees while offering comparable exposure to Treasuries on this narrow segment of the yield curve, as Treasuries are one of the most competitively priced areas of the bond market and managers have little leeway to take additional duration risk." * 7 Dangerous Dividend Stocks to Stay Far Away From SCHO's effective duration is just 1.93 years. In other words, SCHO's selling points are low credit risk, low rate risk and a low fee. The first two of those points also mean a somewhat low yield (2.32%), but that is the trade-off for reducing credit and interest rate risk. Vanguard Total International Bond ETF (BNDX)Source: Shutterstock Expense Ratio: 0.09%The Vanguard Total International Bond ETF (NASDAQ:BNDX) has several factors that make it a compelling choice among bond ETFs. As is the case with so many Vanguard funds, BNDX qualifies as a cheap ETF. In fact, investors would be hard-pressed to find a cheaper international bond ETF.Second, BNDX provides investors with some international diversification, a trait that often goes overlooked in bond portfolios. Third, BNDX uses a currency hedge to provide a buffer against weakness in currencies that the fund's holdings are denominated. Home to more than 5,600 bonds, BNDX is also one of the largest bond ETFs in terms of roster size.BNDX has slight emerging markets exposure and the bulk of its geographic exposure is allocated among developed Europe and the Asia-Pacific region. Japan, France and Germany combine for 43.2% of this Vanguard fund's weight. BNDX has an average duration of 7.9 years and is one of this year's most popular bond ETFs as highlighted by inflows of $3.43 billion, good for the ninth-best tally among U.S.-listed ETFs. Vanguard Intermediate-Term Corporate Bond ETF (VCIT)Source: Shutterstock Expense Ratio: 0.07%The Vanguard Intermediate-Term Corporate Bond ETF (NASDAQ:VCIT) is one of the dominant names among intermediate-term corporate bond ETFs. One of the lowest fees in the category is a help, as is the fund's investment-grade portfolio.VCIT holds 1,770 bonds with an average duration of 5.8 years. Over 94% of the fund's holdings are rated A or Baa. VCIT has a 30-day yield of 3.6%, which is above what investors find with Treasury funds of comparable durations. This Vanguard fund is outperforming the largest corporate bond ETF by about 40 basis points over the past 12 months. * 10 Great Stocks to Buy on Dips Advisors and investors are certainly taking notice. As of May 9, VCIT's year-to-date inflows were $4.39 billion, good for the top spot among bond ETFs and the fourth spot overall among U.S.-listed ETFs. Invesco Corporate Income Value ETF (IHYV)Source: Shutterstock Expense Ratio: 0.23%At just under a year old, the Invesco Corporate Income Value ETF (NYSEARCA:IHYV) is a hidden gem among corporate bond ETFs, presenting investors with a value play on corporate bonds with non-investment-grade ratings. This bond ETF tracks the Invesco High Yield Value Index.That benchmark is "designed to provide exposure to higher value, U.S. high yield bonds and bonds with the lowest credit rating considered investment grade," according to Invesco. "Higher value bonds are characterized as those with higher yields that may provide greater returns in certain markets. In addition, the Index seeks to incorporate securities with the highest quality scores within the eligible universe of U.S. bonds."IHYV features scant exposure to highly speculative CCC-rated debt (3% of the portfolio), but the fund is somewhat levered to oil prices because energy issues represent over 22% of IHYV's weight. Investors are compensated for the risk that comes along with this bond ETF with a 30-day SEC yield of 6.50%. IHYV has an effective duration of 4.04 years.As of this writing, Todd Shriber did not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks to Buy as the Trade War Reignites * 10 Stocks That Could Squeeze Short Sellers, Including CGC * 5 Tech Stocks Getting Crushed Compare Brokers The post 7 Bond ETFs to Buy appeared first on InvestorPlace.
Many advisors and investors view high-yield corporate bonds and the related exchange traded funds (ETFs) as tactical plays to be used over short- to medium-term time frames, but these funds are strategic ...
This year, fees have been falling across the exchange traded funds (ETFs) landscape. Junk bond ETFs are getting in on the act. BlackRock, the largest ETF sponsor recently (and quietly) announced a lower ...
State Street Global Advisors, the asset management business of State Street Corporation (NYSE: STT), will enhance its two high-yield bond ETFs–the SPDR Bloomberg Barclays High Yield Bond ETF (NYSEArca: ...
Changes are coming for the SPDR BofA Merrill Lynch Crossover Corporate Bond ETF (NYSEARCA: CJNK). Effective April 1, CJNK “will change its index strategy and name, and decrease its expense ratio by 25 ...