Fallen Angel ETF Still Looks Heavenly

ANGL holds 234 bonds, two-thirds of which are issued by U.S. companies. The energy and materials sectors combine for 48% of the ETF’s weight. Fallen angel bonds from telecommunications and financial services issuers combine for another 30%.

“Investors should consider fallen angels’ overweight to both the energy and basic industry sectors, factoring in any views they may have on commodities’ prices, as these have meaningfully influenced returns in the two sectors,” according to VanEck. “Historically, such differences in sector allocations versus the broad high yield bond market have, on average, helped offset some of the negative impact from rising interest rates, as rate increases often coincide with market recoveries.”

The $1.2 billion ANGL has a 30-day SEC yield of almost 4.8% and an average portfolio maturity of 10.9 years. Nearly 95% of the ETF’s holdings carry BB or B ratings. ANGL has an effective duration of 6.65 years.

For more information on corporate debt, visit our corporate bonds category.