ANGL is benefiting from a large weight in energy fallen angels. That sector represents nearly a quarter of the fund’s weight. By comparison, the Markit iBoxx USD Liquid High Yield Index’s energy weight is more than 1,000 basis points less than ANGL’s.
““More price volatility in commodity sectors may ensue with increasing or subsiding trade tensions. Oil prices are likely to be responsive in the days leading up to and after the June OPEC meeting, when future output may be determined. However, despite these headline risks, fallen angels’ two largest sector biases may appeal to investors positively disposed to commodities for their potential diversification and pro-inflationary features,” according to VanEck.
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