Altman notes a combination of distressed junk and defaulted bonds has outperformed most asset classes over long and medium-term time frames while being negatively correlated to high-yield corporates and government bonds.
The index will be rebalanced monthly with target allocations to be reviewed on a quarterly basis. A statement issued by Market Vectors did not comment on when the related ETF will debut.
High-yield bond offerings from Market Vectors on the market today include the Market Vectors Emerging Markets High Yield Bond ETF (NYSEArca: HYEM) and the Market Vectors International High Yield Bond ETF (NYSEArca: IHY).
ETF Trends editorial team contributed to this post.