By Fran Rodilosso, Head of Fixed Income ETF Portfolio Management, CFA, VanEck Global
In a year that has already seen record volume of new fallen angel bonds, including the entry of several big names like Ford and Kraft-Heinz into the fallen angel universe, what can investors expect in the remainder of the year? In this ETF Prime podcast, Fran Rodilosso, Head of Fixed Income ETF Portfolio Management, joined host Nate Geraci to take a closer look at fallen angel bonds. Topics included:
- What distinguishes fallen angel bonds from the broad high yield market
- How the defining characteristics of fallen angel bonds helps drive the investment case
- The “equity-like” risk/return profile of fallen angels and what this means for how they fit within a portfolio
- The inclusion of the VanEck Vectors® Fallen Angel High Yield Bond ETF (ANGL®) in the Federal Reserve’s bond buying program
Listen to the podcast: ETF Prime – VanEck’s Fran Rodilosso on “Fallen Angels”.
A fallen angel bond is a bond that was initially given an investment-grade rating but has since been reduced to junk bond status.
High yield bonds may be subject to greater risk of loss of income and principal and are likely to be more sensitive to adverse economic changes than higher rated securities.
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An investment in the VanEck Vectors® Fallen Angel High Yield Bond ETF (ANGL®) may be subject to risk which includes, among others, high yield securities, foreign securities, foreign currency, credit, interest rate, restricted securities, market, operational, call, Consumer staples, consumer discretionary, energy, communications, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount risk and liquidity of fund shares, non-diversified and concentration risks, all of which may adversely affect the Fund.
Investing involves substantial risk and high volatility, including possible loss of principal. Bonds and bond funds will decrease in value as interest rates rise. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus and summary prospectus, which contains this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.
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