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.

Indeed, BB debt has outperformed all credit classes within a range of both two notches above and below it since 1997, a period of nearly 20 years. The total return of BB debt over this period is 264.4%, followed by BBB (investment-grade) at 227.7%. A-rated debt ranks third at 197.1%, followed closely by CCC at 196.2%. B has done the worst at 178.1%,” adds Seeking Alpha.

ANGL is lightly allocated to CCC-rated and those bonds were among the worst junk performers last year.

Market Vectors Fallen Angel High Yield Bond ETF