High Yield FundsHigh yield funds invest mainly in lower-quality bonds, which are riskier than those of higher-quality debts. These funds may invest in government or companies bonds. Mostly, they invest in companies debts. These funds provide high yield income for investors due to high credit & economic risk.
You can invest in variety of investment funds for high yield bond such as exchange traded funds (ETFs), closed end funds (CEFs), and mutual funds. Using exchange traded funds; you can easily trade or buy from your stock brokers or other discount brokerage. These funds can be invested in your regular investment account or 401k or retirement account.
These top performer ETFs are sorted based on its 1 year return (up to July 2014). You can find the best exchange traded fund review from this article. Other fund information can be found below such as expense ratio, Morningstar rating, fund’s NAV, managers, fund’s holdings, yield, etc.
Best high yield bond ETFs 2014 are:
- iShares B - Ca Rated Corporate Bond
- AdvisorShares Peritus High Yield ETF
- Market Vectors Fallen Angel High Yield Bond ETF
- iShares Baa - Ba Rated Corporate Bond
- SPDR Barclays High Yield Bond
- Guggenheim BulletShares 2018 High Yield Corporate Bond ETF
- iShares iBoxx $ High Yield Corporate Bond
- PowerShares Fundamental High Yield Corporate Bond
- Guggenheim BulletShares 2017 High Yield Corporate Bond ETF
- Guggenheim BulletShares 2016 High Yield Corporate Bond ETF
- PIMCO 0-5 Year High Yield Corporate Bond Index ETF
- SPDR BarCap ST High Yield Bond ETF
- Guggenheim BulletShares 2015 High Yield Corporate Bond ETF
- PowerShares Global S/T High Yield Bond
- Guggenheim BulletShares 2014 High Yield Corporate Bond ETF
iShares B - Ca Rated Corporate Bond ETF (QLTC)iShares B - Ca Rated Corporate Bond ETF utilizes its assets to purchase higher yielding U.S. corporate bonds. With $21 million of assets, this exchange traded fund has a high yield of 6.45%. The current share price of this index ETF is $54. Its expense ratio fee is 0.55%.
More: Top High Yield Bond Closed End Funds
For the past 1 year, this best high yield bond ETF has 1 year total return of 14.13%. In 2014, the YTD return is 5.66%. Top 3 issuers are First Data Corporation, Reynolds Group, and NRG Energy Inc. top 2 sectors are industrial (75%), and consumer services (4.69%).
AdvisorShares Peritus High Yield ETF (HYLD)AdvisorShares Peritus High Yield ETF uses its assets to buy a focused portfolio largely of high yield corporate debt securities that, via their coupons, generate a high, tangible income stream. It has total assets of $1.09 billion. The 12 month yield is 7.40%. The expense fee is 1.25% per year.
This top high yield fund has year- to-date return of 6.46% in 2014. The current average duration of this bond ETF is 2.29 years. Morningstar has ranked this bond ETF with 5 stars rating. The 3 year annualized return is 9.69%.
More: Top High Yield ETFs 2014
Top 5 holdings are Arch Coal Inc, Innovation Ventures / FINA, Nuverra Environmental SO, Tervita Corp, and Newpage. Top 3 sectors are Oil & Gas, Transportation, and Telecommunications.
Market Vectors Fallen Angel High Yield Bond ETF (ANGL)Market Vectors Fallen Angel High Yield Bond ETF has total assets of $16.85 million. This bond ETF has yield of 5.44%. Its expense fee is 0.40%. This average effective duration is 5.18 years. The average credit quality is BB. The average 1 year return is 12.23%.
SPDR Barclays High Yield Bond ETF (JNK)SPDR Barclays High Yield Bond ETF is a 3 stars bond fund. As one of the popular high yield bond ETF, it has total assets of $9.53 billion. Its epxnese fee is 0.40%. The current share price is $41.39. This bond ETF is tracking price and yield performance of the Barclays High Yield Very Liquid Index.
More: Best ETFs 2014
This top bond fund is incepted in November 2007. This fixed income fund has returned 8.26% over the past 3 year, and 13.17% over the past 5 year. The modified adjusted duration is 4.19 years.
iShares iBoxx $ High Yield Corporate Bond ETF (HYG)iShares iBoxx $ High Yield Corporate Bond ETF objective is to track the investment results of an index composed of U.S. dollar-denominated, high yield corporate bonds. The total net assets are $13 billion. In 2014, the YTD return is 4.61%. The annual expense fee is 0.50%.
PIMCO 0-5 Year High Yield Corporate Bond Index ETF (HYS)PIMCO 0-5 Year High Yield Corporate Bond Index ETF is another 3 star high yield bond ETF. The current share price is $106.38. The 12 month yield is 4.29%. Total net assets are $5.13 billion.
High Yield Fund Return
|No||ETF Name||Symbol||Expense Ratio (%)||YTD Return||1-Year Return|
|1||iShares B - Ca Rated Corporate Bond||QLTC||0.55||6.33||14.13|
|2||AdvisorShares Peritus High Yield ETF||HYLD||1.25||6.46||12.74|
|3||Market Vectors Fallen Angel HY Bond ETF||ANGL||0.4||6.91||12.23|
|4||iShares Baa - Ba Rated Corporate Bond||QLTB||0.3||8.06||9.72|
|5||SPDR Barclays High Yield Bond||JNK||0.4||5.01||9.36|
|6||Guggenheim BulletShrs®2018 HY CorpBd ETF||BSJI||0.42||3.06||8.38|
|7||iShares iBoxx $ High Yield Corporate Bd||HYG||0.5||4.61||8.04|
|8||PowerShares Fundamental High Yld Corp Bd||PHB||0.5||4.11||7.66|
|9||Guggenheim BulletShrs®2017 HY CorpBd ETF||BSJH||0.42||2.77||7.65|
|10||Guggenheim BulletShrs®2016 HY CorpBd ETF||BSJG||0.42||2.49||7.43|
|11||PIMCO 0-5 Year High Yld Corp Bd Idx ETF||HYS||0.55||2.17||6.8|
|12||SPDR BarCap ST High Yield Bond ETF||SJNK||0.4||2.27||6.48|
|13||Guggenheim BulletShrs®2015 HY CorpBd ETF||BSJF||0.42||1.57||5.65|
|14||PowerShares Glbl S/T Hi Yld Bd||PGHY||0.35||1.69||4.74|
|15||Guggenheim BulletShrs®2014 HY CorpBd ETF||BSJE||0.42||0.07||3.04|
|16||iShares 0-5 Year High Yield Corp Bd||SHYG||0.5||2.31||0|