Fallen angel issuers tend to be larger and more established than many other junk bond issuers. Furthermore, since these fallen angels were formerly on the cusp of investment-grade status, the group of junk bonds typically has a higher average credit quality than many other speculative-grade debt-related funds.
Related: A Smart-Beta, High-Yield ETF Strategy for Quality
ANGL’s credit qualities include low investment-grade BBB 6.5%, along with speculative-grade BB 75.8%, B 9.5%, CCC 3.7%, CC 0.1% and non-rated 2.9%.
The Fallen Angel ETF has a 0.40% expense ratio, a 6.45% 30-day SEC yield and a 5.68 year duration.
For more information on speculative-grade debt, visit our junk bonds category.
Financial advisors who are interested in learning more about high-yield, speculative-grade bonds can register for the Thursday, May 26 webcast here.