ETFs to Invest in High Yield Bonds

Can a passive approach to high-yield bonds can deliver excess returns compared to their actively-managed fund peers over the long run?

Niels Faassen 30 January, 2018 | 11:55AM

 

 

Niels Faassen: The active/passive debate has been a recurring event ever since the launch of the first exchange-traded funds. As a low-cost, index-tracking alternative to active funds, passives have been gaining in popularity across all asset classes. In the high-yield bond area, passive solutions in the EUR high-yield bond and USD high-yield bond Morningstar Categories already have market shares of 15% and 11%, respectively. In both cases, iShares is the dominant provider.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
iShares $ High Yld Corp Bd ETF USD Dist GBP72.31 GBP0.19
iShares € High Yield CorpBd ETF EUR Dist GBP76.84 GBP0.07

About Author

Niels Faassen  is a fund analyst for Morningstar

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