VanEck Fallen Angel High Yield Bond ETFNASDAQ: ANGL

The 'Undercovered' Dozen ETF edition highlights less covered ETFs, focusing on seven in-depth analyses and five brief mentions, from articles published between August 15th and September 16th. The Invesco Russell 1000 Dynamic Multifactor ETF (OMFL) has shown volatility but is stabilizing; patience is advised by The Sunday Investor as its high-quality selections might perform well. The SPDR Portfolio S&P 500 High Dividend ETF (SPYD) offers a 4.07% yield but lacks complexity according to MacroGirl; consider alternatives like PEY.

I have been a high-yield bond skeptic for nearly 30 years, but recently initiated a small position in this "fallen angels" high-yield bond ETF. Fallen angels refer to bonds that were once investment grade but have been downgraded to junk status. ANGL fits my proprietary YARP™ methodology, which is typically applied to stocks but works for many ETFs as well. I see potential for total return and a contrarian buying opportunity.

Speculation is intensifying that the Federal Reserve will lower interest rates. It might do so by perhaps as much as 50 basis points, when it meets next month.

VanEck Fallen Angel High Yield Bond ETF focuses on high-yield bonds, particularly after credit rating downgrades for potential total return boost. ANGL has a strong performance history, low expense ratio, and diversified holdings, making it a buy for income investors. Potential downside risks include Federal Reserve policy errors leading to recession, impacting high-yield bond performance, and causing volatility.

Fallen angels are delivering decent performances on a year-to-date basis. They are outperforming investment-grade corporate bonds while keeping pace with traditional high-yield fare.

Going against the trend with bonds.

Fallen angels are bonds downgraded from investment-grade to non-investment-grade ratings. These bonds tend to experience forced selling from institutional investors. Buyers can profit by buying fallen angels at fire sale prices, and potentially profiting from any rise in prices. ANGL is a simple fallen angels index ETF, with diversified exposure to these securities, and an outstanding performance track record.

VettaFi sat down with VanEck's Head of ETF Product Ed Lopez at the recent Exchange conference. In a changing ETF landscape, VanEck offers standout strategies focused on key themes such as semiconductors.

Three VanEck ETFs have seen considerable investor attention in 2024 to date. Reflecting VanEck's diverse range of ETF offerings, the three most popular ETFs, as measured by net flows, comprise a growthy thematic ETF, a value-tilted fund, and a compelling fixed income product.