High Yield Bond ETF: If We Avoid a Full-Blown Depression, It’s a Steal
Dan Pritch submits:
The iShares iBoxx High Yield Corporate Bond ETF (HYG) has been showing impressive performance on many fronts and may very well continue to reward investors that are early to the party quite handsomely. Not only has it outperformed the S&P 500, but its dividend yield is significantly higher, at 12% vs 3.3% for the S&P 500. Many economists have been touting how corporate and municipal bonds are trading at Depression scenario prices and anyone believing that we’re not headed for a repeated disaster should be snatching up shares now.
A look at the top 10 holdings: it’s refreshing to see the the ETF isn’t comprised primarily of Financials, which is what dealt a death blow to
More Information:
It appears that the high yield bond has been added to the Investors Observer list of select ETF’s.