If more risk is what you seek, consider the range of high-yield bond funds. According to the ETF Analyzer, there are three primary high-yield corporate bond funds:
- iShares iBoxx $ High Yield Corporate Bond (NYSEArca: HYG)
- PowerShares Fundamental High Yield Corporate Bond (NYSEArca: PHB)
- SPDR Barclays Capital High Yield Bond (NYSEArca: JNK)
However, Emma Wall for Telegraph UK reports that some managers are sounding the death knell for corporate bond funds, and this may frighten hundreds of thousands of investors who have bought corporate bonds in recent years in the belief that they were putting their money into a safe haven and getting a decent level of income.
No bull run can last forever, so have a strategy in place that you can use when this trend winds down. One simple strategy is trend following, which you can read more about here.
For full disclosure, Tom Lydon’s clients own shares of JNK and LQD.
Tisha Guerrero contributed to this article.