By William Sokol, Senior ETF Product Manager After essentially completing a market cycle in just three quarters in 2020, high yield spreads are back below historical averages and yields are as low as they’ve ever been. High yield investors may be asking what might drive performance going forward, and how to navigate an environment characterized by both tight spreads and higher corporate leverage, as well as continued low rates in the face of higher economic growth.
Bonds are integral components in any retirement portfolio. Corporate bonds can carry higher yields than domestic government debt. When it comes to corporate bonds, passive index-based strategies are often the way to go for retirees.
Perusing meeting minutes from the Federal Open Market Committee ( FOMC ) isn’t always easy or entertaining, but the text out earlier this week may
If you’ve been keeping up with my 2021 blog posts, you’ll know by now that my focus has been on the “ reflation trade .“ Certainly, not all market participants are convinced yet that inflation might make a comeback, but don’t tell that to the bond market.
Safe haven government debt yields have been on the rise. In order to extract maximum yield, fixed income investors can look at longer duration debt via ETFs like the Invesco BulletShares 2030 Corporate Bond ETF (BSCU) .
More investors are looking at riskier assets in order to obtain increasingly elusive yield. ETF provider VanEck is seeing strong inflows in three of its ETFs that focus on high yield debt. One fund that is highly sought after is the VanEck Vectors Fallen Angel High Yield Bond ETF (ANGL) .
Depressed interest rates are prompting advisors and investors to embrace income-generating assets beyond the safest bonds. The Invesco Senior Loan ETF (NYSEArca: BKLN) is one noteworthy option. BKLN targets the S&P/LSTA U.S. Leveraged Loan 100 Index.
The Federal Reserve didn’t throw the capital markets a curve ball when it decided to keep interest rates unchanged last week. Fortunately, fixed income investors looking for yield have options thanks to ETF provider Invesco.
A taste for high yield and rare earth metals is apparent in the three VanEck ETFs with the highest inflows over the past week. With the Federal Reserve opting to keep interest rates unchanged, fixed income investors are seeking alternative forms of high yield.
Getting quality and value in bond exposure is an added plus when it comes to high yield debt investing. Thankfully ETF investors can get both with the iShares Edge High Yield Defensive Bond ETF (HYDB) . HYDB seeks to track the investment results of the BlackRock High Yield Defensive Bond Index.
High-yield corporate bonds are off to solid starts in the new year. But that’s not license for investors to take on too much risk. In fact, now’s a good time to implement quality with junk bonds via the FlexShares High Yield Value-Scored Bond Index Fund (NYSEArca: HYGV ) .
Investment-grade corporate bonds have been strengthening as the prospects of an economic recovery and a slowdown in borrowing have helped support credit markets. The iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) increased 8.5% over the past yea
Getting more than broad-based bond exposure doesn’t mean investors have to deep dive into the debt market. They can start with three ETFs from Invesco that are seeing heavy average daily volume.
As we consider the path to potential recovery, exchange traded fund investors should consider a diversified asset allocation strategy for 2021. In the recent webcast, Turn the Page – Asset Allocation in 2021 , Dan Phillips, Director Asset Allocation Strategy, Northern Trust Asset Management, pointed out that the economy is rebounding, with business activity picking up and select regional Manufacturing PMI Survey Index levels at or above pre-coronavirus levels
