Fallen Angel ETF Flies High Against Rival Bond Funds

Fallen Angel ETF Flies High Against Rival Bond Funds

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Business

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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