ANGL applies a sampling methodology to the BofA Merrill Lynch US Fallen Angel High Yield Index (H0FA). The fallen angel bond ETF may also come with an embedded value characteristic. Before being included in the BofAML US Fallen Angel Index, a debt security that has been downgraded to speculative-grade status would have already experienced significant price deterioration.
“In other words, ANGL is picking these bonds after the dust has settled during its monthly rebalance. The hope is that ANGL scoops them up and harvests profits as they move back to those ‘justified levels,’” according to Bloomberg.
Market Vectors Fallen Angel High Yield Bond ETF
