Related: Why Junk Bond ETFs Are Picking Up Again
Sixty-five percent of PGHY’s holdings are rated BB or B with 7% allocated to speculative CCC-rated debt. Outside of the U.S., most of PGHY’s marquee country allocations are unlikely to raise interest rates this year.
Importantly, PGHY is a solid idea for investors looking to boost current income with a low duration. The ETF’s effective duration is just 1.27 years. Duration measures a bond’s sensitivity to changes in interest rates.
For more information on the speculative-grade debt market, visit our junk bonds category.