Management expertise is often sought after in areas of the market that may be considered or tend to be “inefficient” at times, and HY Corporates fall right within these parameters thanks to the typical dislocation that occurs at times in bond trading land.
What advisors and portfolio managers also likely are noting at this point about HYLD is its yield north of 8%, which compares very favorably to say JNK’s and HYG’s 6.46% yield. Live track records are “everything” to some in the ETF business, and HYLD now has nearly three years of live performance and a very impressive showing in terms of net performance and relative yield thus far in 2013, so it is safe to say the fund is on more institutional radars now than ever.
How have the portfolio managers of HYLD managed to out-perform this year? Top holdings currently include issues from Petrobakken Energy (2.03%), NII Capital Corp. (1.95%), Navistar International Corp. (1.95%), Venoco Inc. (1.78%), and Innovation Ventures (1.78%), not exactly household names.
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