|Bid||27.42 x 1000|
|Ask||27.60 x 800|
|Day's Range||27.59 - 27.65|
|52 Week Range||25.75 - 27.73|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||2.27%|
|Beta (5Y Monthly)||0.02|
|Expense Ratio (net)||0.25%|
As volatility seen has been racking the capital markets as of late, it has spurred activity in the bond markets, but BBB bonds, the lowest of investment-grade bonds, is one looming risk that could put the use of strategic fixed income funds in focus. BBB bonds comprise almost 50% of the $5.8 trillion investment-grade bond market and a lack of liquidity could leave BBB bond investors holding the debt as it toes the line between investment grade and junk bond status–the worry, of course, being that it may eventually fall into the category of the latter. “Over the past decade, the investment-grade corporate bond market has grown as issuers have taken advantage of rock-bottom interest rates and increased demand from yield-starved investors,” wrote Karen Schenone, Fixed Income Strategist at BlackRock.
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 ...
Corporate bonds and the related exchange traded funds often feature higher yields than Treasuries and those yields go up as investors go down the ratings spectrum. For example the iShares U.S. Fallen Angels USD Bond ETF (FALN) has a 30-day SEC yield of 5.67%. FALN, which recently turned three years old, seeks to track the investment results of the Bloomberg Barclays US High Yield Fallen Angel 3% Capped Index composed of U.S. dollar-denominated, high yield corporate bonds that were previously rated investment grade.
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.
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.