Appetite For U.S. High Yield Bond ETFs Remains High as Yields Tighten
High yield bond ETFs concentrate on lower quality corporate bonds, which are considered riskier than higher-quality or more established companies. Because of this higher level of risk, high-yield bonds, also known as junk bonds, offer higher yields to investors. US high yield bond ETFs invest at least 65% of capital in binds that are not rated or are rated by S&P or Moody’s at or below BB (considered speculative). Because of high returns and the potential for diversification across many markets, regions, and industries, high yield bonds are a major part of many investment strategies.
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| Assets Class | Symbols | 05/06 Trend Score |
04/29 Trend Score |
Direction |
|---|---|---|---|---|
| International Inflation Protected | (WIP) | 6.74% | 9.22% | v |
| High Yield | (JNK) | 5.54% | 5.68% | v |
| International Treasury | (BWX) | 5.1% | 6.82% | v |
| Long Term Credit | (LQD) | 3.48% | 2.87% | ^ |
| Emerging Mkt Bonds | (PCY) | 3.48% | 2.21% | ^ |
| 20+ Year Treasury | (TLT) | 3.38% | 1.63% | ^ |
| Inflation Protected | (TIP) | 3.09% | 3.27% | v |
| 10-20Year Treasury | (TLH) | 2.88% | 1.73% | ^ |
| Intermediate Term Credit | (CIU) | 2.43% | 2.06% | ^ |
| Intermediate Treasury | (IEF) | 2.39% | 1.65% | ^ |
| US Total Bond | (BND) | 2.1% | 1.77% | ^ |
| MBS Bond | (MBB) | 1.92% | 1.83% | ^ |
| California Muni | (CMF) | 1.74% | 1.99% | v |
| National Muni | (MUB) | 1.57% | 1.24% | ^ |
| Short Term Credit | (CSJ) | 1.0% | 1.09% | v |
| New York Muni | (NYF) | 0.64% | 0.51% | ^ |
| Short Term Treasury | (SHY) | 0.55% | 0.53% | ^ |
| Treasury Bills | (SHV) | 0.08% | 0.07% | ^ |
Trend score is the average of 1,4,13,26 and 52 week total returns (including dividend reinvested). You can get a no cost widget for any of these tables which will automatically update weekly.
U.S. High Yield Bonds
05/06/2011
| Description | Symbol | 1 Yr | 3 Yr | 5 Yr | Avg. Volume(K) | 1 Yr Sharpe |
|---|---|---|---|---|---|---|
| iShares iBoxx $ High Yield Corp | (HYG) | 17.67% | 7.03% | NA | 1,247 | 270.24% |
| SPDR Barclays Capital High Yield | (JNK) | 20.83% | 8.41% | NA | 2,972 | 279.79% |
| PowerShares Fundamental High Yield | (PHB) | 19.2% | 0.79% | NA | 302 | 318.25% |
Written By The Staff Of MyPlanIQ.comDisclaimer: MyPlanIQ does not have any business relationship with the company or companies mentioned in this article. It does not set up their retirement plans. The performance data of portfolios mentioned above are obtained through historical simulation and are hypothetical.
LTI Systems, Inc. is the operator of MyPlanIQ.com and ValidFi.com. The founders of LTI Systems have extensive technology and business background in computer and semiconductor industries. They have been using the strategies provided by MyPlanIQ for their own personal retirement and taxable investments. The mission of LTI Systems is to make wealth management investment strategies that are used to be only accessible to institutions and high net worth individuals available to private investors with a fraction of flat cost and ease of use. The founders of LTI Systems, investors themselves, take pride in creating such a system and service for investors by taking the perspective from the investor side. They are using the system and the strategies for their own investment and align their interests with their customers.
MyPlanIQ’s blog provides periodical articles to discuss issues related to retirement plans (401(k), 403(b) and IRAs), deferred compensation plans (457), college savings plans (529), taxable brokerage investment accounts, variable annuities and universal life insurance plans. It also covers investment strategies, specifically strategic and tactical asset allocation and investment products such as ETFs and mutual funds. In addition, it syndicates daily articles that are related to retirement planning, personal finance, investment strategies, annuities, insurance, college savings and market/economic outlooks. It provides a comment and discussion community for readers.
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