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Fallen Angel ETF Flies High Against Rival Bond Funds

Fallen Angel ETF Flies High Against Rival Bond Funds

Assessment

Interactive Video

Business

University

Practice Problem

Hard

Created by

Wayground Content

FREE Resource

Angel is a fund known for tracking an index of U.S. dollar-denominated corporate bonds downgraded to junk status. These bonds are often oversold, presenting rebound opportunities. Angel's holdings span commodities, telecom, and banking, with a quarter of companies based overseas. The fund has $1.1 billion in assets and a 35 basis point expense ratio. Since its 2012 launch, Angel has outperformed high yield and investment grade bonds by 30-40 percentage points, offering a 5.6% yield. However, it receives a yellow light in Bloomberg's system due to less liquid high yield bonds.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What is the yield of the Angel fund as mentioned in the text?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What does the yellow light in the Bloomberg Intelligence Traffic light system indicate for Angel?

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OFF

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