High Yield Junk Bond ETF: Does Risk/Reward Spectrum Favor Buying?
Thursday, March 25th, 2010Dan Pritch submits:
Given the current low interest rate environment and the seemingly unchecked momentum in common equities since last March, investors may want to consider parking some portion of their allocation in high yielding vehicles in the event the market takes a breather. There are some decent ETFs out there that combine high yield, sustained dividend payouts and diversification across companies and sectors. Here, I’m reviewing the one at the extreme of the risk/return spectrum of high yield bonds in that the portfolio consists solely of debt issues from companies with middle to low credit quality.
Ticker: (JNK)
ETF Name: SPDR Barclays Capital High Yield Bond
Sector: High Yield Corporate Bond
Yield: 12%
Description:
