ETF Trends publisher Tom Lydon discussed VanEck Vectors Fallen Angel High Yield Bond ETF (ANGL) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show.
ANGL is an outperforming high-yield bond ETF as high-yield, speculative-grade debt is experiencing renewed interest after investors exited out of risky debt this summer.
The ETF tracks so-called fallen angel speculative-grade rated debt, or debt securities that were initially issued with an investment-grade rating but were later downgraded to junk territory.
Fallen angel issuers tend to be larger and more established than many other junk bond issuers.
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.
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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.