Core Insights - The bond market, particularly high-yield and investment-grade corporate debt, has performed well in 2023, with the two largest ETFs in these categories up an average of 7% year-to-date as of September 26 [1] Group 1: Investment Opportunities - The Neuberger Berman Flexible Credit Income ETF (NBFC) is highlighted as an attractive option for income investors, especially with expectations of further interest rate cuts by the Federal Reserve [2] - NBFC, which launched in June 2024, is actively managed and holds a mix of investment-grade and junk debt, with a heavier emphasis on the latter while still maintaining exposure to higher quality corporates [3][4] - The ETF boasts a 30-day SEC yield of 6.39%, which is considered impressive, and is supported by the higher-than-average yields currently available in the investment-grade bond market [4][5] Group 2: Yield Analysis - Investment-grade corporate bonds are yielding between 4.25% to 5.50%, which is near the top of their range for the last 15 years, indicating a favorable environment for bond investors [5] - The inverse relationship between bond prices and yields suggests that higher yields may indicate potential for price appreciation, making NBFC's elevated yield appealing [6] - Current yields on investment-grade corporate bonds may serve as indicators of future total returns, making them a viable option for investors concerned about interest rate uncertainties [7][8]
This Corporate Bond ETF Matters Now
Etftrendsยท2025-09-26 22:55