4 Tactical ETFs to Consider for Corporate Bond Exposure

Higher-than-average yield is the number one reason most fixed income investors will add corporate bonds to their debt portfolio. Whether you’re looking for safer haven, investment-grade corporate bonds, or high-risk high-yield debt, VanEck offers plenty of options to consider:

1. VanEck Vectors Fallen Angel High Yield Bond ETF (BATS: ANGL): seeks to replicate as closely as possible the price and yield performance of the ICE BofAML US Fallen Angel High Yield Index, which is comprised of below investment grade corporate bonds denominated in U.S. dollars that were rated investment grade at the time of issuance.
2. VanEck Vectors Investment Grade Floating Rate ETF (FLTR): seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVIS® US Investment Grade Floating Rate Index, which is comprised of U.S. dollar-denominated floating rate notes issued by corporate entities or similar commercial entities that are public reporting companies in the United States and rated investment grade.
3. VanEck Vectors Moody’s Analytic (MBBB): seeks to track, as closely as possible, before fees and expenses, the price and yield performance of the MVIS^® Moody’s Analytics^® US BBB Corporate Bond Index, which includes BBB rated corporate bonds that have attractive valuations and a lower probability of being downgraded to high yield compared to other BBB rated bonds.
4. VanEck Vectors Moody’s Analytics IG Corporate Bond ETF (MIG): seeks to track, as closely as possible, before fees and expenses, the price and yield performance of the MVIS^® Moody’s Analytics^® US Investment Grade Corporate Bond Index, which includes investment grade corporate bonds that have attractive valuations and a lower probability of being downgraded to high yield compared to other investment grade bonds.

Advantages of Corporate Bond ETFs

A Financial Express article outlines three more reasons to choose corporate bonds:

1. Dependable Regular Income: Corporate bonds can provide a steady income while preserving capital.
2. Security: Corporate bonds are assigned a rating by an agency like Mood’s or Fitch Ratings based on their credit history. Of course the higher the better.
3. Variety: Corporate bonds can offer fixed income investors more diversification via exposure to various business sectors, structures, and credit qualities that meet investment objectives.

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