ANGL Profile
The VanEck Fallen Angel High Yield Bond ETF (ANGL), issued by VanEck, is an exchange-traded fund focused on high-yield fixed income investments. Launched on April 10, 2012, the fund seeks to provide investors with exposure to corporate bonds that were originally issued with investment-grade ratings but have since been downgraded to sub-investment grade, known as fallen angels. The fund tracks a market-value-weighted index, ensuring that its holdings reflect the relative size of each bond issue within the market.
ANGL normally invests at least 80% of its total assets in securities that comprise its benchmark index, which consists of below investment grade corporate bonds denominated in U.S. dollars. These bonds, despite their downgrade, often maintain some of the characteristics of their original investment-grade rating, such as lower default risk and higher liquidity compared to other high-yield bonds. This strategy allows investors to potentially capitalize on the price recovery and yield premium of fallen angels.
The ETF's methodology involves a meticulous selection process to ensure that the bonds in the portfolio were rated investment grade at the time of issuance. By focusing on these downgraded bonds, ANGL aims to exploit market inefficiencies and offer superior risk-adjusted returns. The fund's market-value-weighted approach means that larger bond issues have a more significant impact on the portfolio, aligning with market trends and liquidity considerations.
VanEck's management of ANGL highlights its expertise in the fixed income space and its innovative approach to high-yield investing. The ETF provides a unique opportunity for investors to gain exposure to a specialized segment of the bond market, combining the potential for high returns with the relative stability of bonds that were once investment grade. With its listing on major exchanges, ANGL offers liquidity and transparency, making it an attractive option for investors seeking to diversify their portfolios with high-yield fixed income assets.
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