High Yield ETFs May Soon See Attractive Entry Points
Monday, February 8th, 2010Garrett Beauvais submits:
While the major US stock indices decisively broke below their 50 day moving averages last month on higher volume, it may to premature to count this rally as over. And, any rise in equities would represent a very attractive entry point for investors looking to get into high yield bond funds. While I only track about 50 high yield bond funds in our High Yield Trader timing service, there are hundreds of high yield bond mutual funds and three high yield bond ETFs.
As an active investment manager, I typically trade high yield bond ETFs with a preference for the iShares iBoxx Corporate High Yield Bond fund (HYG) or the SPDR Barclays Capital High Yield Bond fund (JNK). These two are more diversified, have better liquidity and have lower fees than the comparable PowerShares ETF (PHB) as you can see from the table below (click to enlarge image).
