KraneShares has unveiled an actively managed fixed income ETF on NYSE Arca targeting opportunities in Asia Pacific’s high-yield bond market.The KraneShares Asia Pacific High Yield Bond ETF (KHYB US) has been created by repurposing the previously launched KraneShares CCBS China Corporate High Yield Bond USD Index ETF.
Treasury yields started off the trading week by ticking lower, but more yield can be had with greater risk and the Vanguard Extended Duration Treasury Index Fund ETF Shares (EDV) . A scramble toward safe-haven bonds took place, putting downward pressure on yields and upward momentum for bond prices.
The Invesco Taxable Municipal Bond Fund (NYSEArca: BAB) once featured “Build America bonds” in its name, hence the ticker “BAB.” While the exchange traded fund’s name changed, it remains one of the premier avenues for accessing a broad portfolio of taxable municipal bonds, and with some market observers seeing signs of life in the often overlooked Build America Bond arena, BAB may warrant consideration from income-oriented investors.
Treasury yields have been falling to new lows as of late, but ETF investors can still capture the moves with the Vanguard Total Bond Market Index Fund ETF Shares (BND) . Another rise in Covid-19 cases has been spooking investors, leading to heavy sell-offs in stocks. “U.S. Treasury yields continued to slide on Monday, with the 10-year benchmark rate falling to its lowest level in five months,” CNBC reported .
The VanEck Vectors Fallen Angel High Yield Bond ETF (NASDAQ: ANGL) is a fixed income exchange traded fund with some momentum. There’s a steady appetite for high-yield corporate debt and some market observers are speculating a host of energy-sector fallen angels could regain investment-grade status due to improving balance sheets and fundamentals in that sector.
Invesco has launched a new fixed income ETF providing socially responsible exposure to the US dollar high-yield corporate bond market. Gary Buxton, Head of EMEA ETFs and Indexed Strategies at Invesco. The Invesco USD High Yield Corporate Bond ESG UCITS ETF has listed on London Stock Exchange in US dollars ( UHYD LN ) and pound sterling ( UHYP LN ). It is referenced to the Bloomberg Barclays MSCI USD High Yield Liquid Corporate ESG Weighted SRI Bond Index which is derived from the Bloomberg USD High-Yield Corporate Bond Index .
With the recent move into higher-yielding, longer-dated bonds, one corporate debt fund to consider is the FlexShares Credit-Scored US Long Corporate Bond Index Fund ( LKOR C+ ).
In scrambling for more yield, investors are, not surprisingly, embracing high-yield corporate debt. However, inflation is taking a bite out of junk bond returns, indicating investors could get selective in this corner of the bond market.
Even with the threat of rising rates, yields are still low by historical standards. Fixed income investors looking to extract more yield have a pair of options from FlexShares. As credit markets start to improve in an improving U.S. economy, high yield is an option for investors to get extra passive income.
Fixed income investors looking to safely diversify their portfolios beyond safe haven Treasury notes can opt for the Vanguard Mortgage-Backed Securities Index Fund ETF Shares (VMBS) . “Mortgage-backed securities (MBS) are debt obligations that represent claims to the cash flows from pools of mortgage loans, most commonly on residential property,” an Investor.gov article explained. “Mortgage loans are purchased from banks, mortgage companies, and other originators and then assembled into pools by a governmental, quasi-governmental, or private entity.
Intermediate exposure can give fixed income investors the positioning sweet spot when it comes to duration. Two Vanguard funds to consider are the Vanguard Intermediate-Term Treasury Index Fund ETF Shares (VGIT) and the Vanguard Interim-Term Corporate Bond ETF (VCIT) .
Inflation continues to be a concern these days, and many investors are looking for investments that can keep pace with, or hopefully beat, the rate of inflation. As a result, Treasury Inflation-Protected Securities, or TIPS, have become a popular investment option.
While high yield debt is an option to consider in the current fixed income environment, some investors may not want the added risk, but an option to consider is the FlexShares High Yield Value-Scored Bond Index Fund (HYGV) .