iShares Fallen Angels USD Bond ETF

FALN

時価総額 $15.8億

Most investors can benefit from simple indexing. But for better diversification and ballast, here are some add-ons.

Independence Financial Advisors sold all of its 476,028 FALN shares in the first quarter; the estimated transaction value was $12.99 million based on the quarter's average prices. Meanwhile, the quarter-end position value declined by $13.00 million, reflecting both trading activity and price movement.

Ocean Park Asset Management sold 1.13 million shares of FALN in the fourth quarter. The shares were worth about $31.48 million based on previously disclosed data.

iShares Fallen Angels USD Bond ETF (FALN) offers exposure to junk bonds previously rated investment grade, aiming for superior risk-adjusted returns. The fund maintains high credit quality within junk bonds, with 78% in BB-rated securities and a diversified sector allocation. FALN has outperformed the high-yield benchmark HYG and a number of strategy-based high-yield bond ETFs since its inception.

Initiated 303,893 shares in FALN; trade value was $8,442,148 according to SEC filing FALN position represents 5.07% of Gimbal Financial's reportable AUM

FALN offers the strongest upside among fallen angel ETFs, earning a strong buy rating versus a simple buy for ANGL. FALN's pure US focus, higher yield sustainability, and greater sensitivity to imminent Fed rate cuts position it for superior short-term returns. Both FALN and ANGL provide high yields and low volatility, but FALN's sectoral exposure and higher duration make it more attractive in the current environment.

High-yield corporate bond ETFs provide investors with strong yields, albeit somewhat elevated credit risk. There are lots of high-yield bond ETFs available to investors. Some with higher yields, some with better performance track-records, some focusing on more niche areas of the market. A quick overview of five of these follows. ETFs include simple, cheap vanilla ETFs, smart beta ETFs, and those targeting niche, best-performing bonds.

FALN invests in fallen angels, or corporate bonds recently downgraded from investment-grade to non-investment grade. Fallen angels tend to experience forced selling, and then significant gains as prices recover. Focusing on fallen angels is an incredibly strong investment strategy, with a strong performance track record, and one benefitting from macro trends.

The ongoing trade war has led to a massive increase in uncertainty and bearish sentiment. Credit spreads have widened as a result, going from their lowest levels in history, to solidly above-average. Investing in high-yield corporate bond funds seems like an easy way to profit from these changes.

Recent trends show narrowing spreads between Treasuries and investment-grade bonds, pushing us to explore slightly below investment-grade bond portfolios for better yields. We analyze iShares Fallen Angels USD Bond ETF and Western Asset Premier Bond Fund for their yield potential and risk profiles. FALN offers a 6.88% yield to maturity with a "BB-" credit score equivalent, while WEA provides a 7.27% potential yield with a "BB+" credit score equivalent.