Why I Can't Stop Buying This Ultra-High-Yielding ETF

Core Viewpoint - The VanEck Fallen Angel High Yield Bond ETF presents a compelling investment opportunity for fixed-income investors, particularly in the context of rising interest rates and the potential for higher income through junk bonds [2][3]. Group 1: ETF Overview - The VanEck Fallen Angel High Yield Bond ETF has a market capitalization of $3.07 billion and offers a 30-day SEC yield of 6.20%, which is significantly higher than that of investment-grade corporate bond ETFs [3]. - Fallen angels, which are bonds that were once rated as investment-grade but have since been downgraded, tend to perform better over the long term compared to both high-quality and junk-rated corporate debt [5]. Group 2: Investment Advantages - Fallen angels generally have higher credit ratings than traditional junk bonds, resulting in lower credit risk for investors [6]. - The ETF is less correlated to stock market movements compared to standard high-yield bonds, providing greater diversification benefits for investment portfolios [6]. - The potential for fallen angels to be upgraded back to investment-grade status offers additional price appreciation opportunities for investors [9][10].