Spdr bloomberg barclays high yield bond etf jnk

Spdr Bloomberg Barclays High Yield Bond

* Symbol: JNK * Price: $36 * Yield: 5.7% * Expense ratio: 0.40% Deciding whose bonds to buy is also tricky. U.S. government bonds are relatively straightforward, but corporate bonds carry the risk of default. The riskier the bond, the higher the rate a corporation must pay to entice you to own it. You should buy high-yielding corporate debt—known as junk bonds—only through a diversified fund, such as SPDR Bloomberg Barclays High-Yield Bond * Yield: 5.0% Another junk bond fund to consider is Vanguard High-Yield Corporate, a member of the Kiplinger 25, is one of the tamer funds in this junk category, opting largely for debt just below investment grade. But with

less risk come lower returns than the SPDR ETF.

12-Month Yield: 5.6% If you don’t mind taking a bit more market risk for a higher-yielding bond fund, SPDR Bloomberg Barclays High-Yield Bond (NYSEARCA:JNK) should be on your radar. As this high-yield ETF’s ticker suggests, JNK invests in bonds with credit quality below investment grade, which are also known as “junk bonds.” While these bonds don’t come from the bottom of the junk pile, they are all rated below BBB, 85% of which are at BB or B ratings. To boost yields higher, as much as 15% of the portfolio consists of non-U.S. bonds and the maturities average intermediate-term.

This fund (NYSEARCA: HYMB) began life in 2011 as the SPDR Nuveen S&P High Yield Municipal Bond ETF. In October 2019, its sponsor State Street Global Advisors changed the benchmark, and hence the name, to SPDR Nuveen Bloomberg Barclays High Yield Municipal Bond ETF. The fund seeks to provide investment results corresponding to the performance of this index, which measures the performance of USD-denominated high-yield municipal bonds issued by U.S. states, the District of Columbia, U.S. territories and local governments or agencies. It invests at least 80% (and usually virtually all) of its assets in securities in the index, or with identical characteristics to those in the HYMB is heavily weighted toward below-investment-grade municipal bonds with 10 or more years to maturity. Its top holdings include bonds issued by entities in Puerto Rico, Ohio, and California. HYMB has a current yield of 4.62%,

a taxable equivalent yield of 6.32% (based on the highest marginal tax bracket), and a modified adjusted duration of 7.12 years. HYMB charges an expense ratio of 0.35%. Based on these statistics, the fund is best-suited for fixed-income investors with investment horizons greater than 10 years who have high-risk tolerances seeking exposure to the high-yield municipal bond market while generating high potential federal tax-exempt yields.

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Spdr Bloomberg Barclays High Yield Bond Etf Jnk

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