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.
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Spdr bloomberg barclays high yield bond etf jnk
October 22 , 2020 |4 Comments
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.
Spdr Bloomberg Barclays High Yield Bond Etf Jnk
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