FALN - FALN ETF: As Smooth As High-Yield Gets
2024-06-26 03:53:45 ET
Summary
- We believe the iShares Fallen Angels USD Bond ETF illustrates a good blend of credit risk and yield curve exposure, allowing a stable pricing environment.
- Furthermore, FALN ETF provides lucrative dividends, which could be sustained if our outlook on credit risk and the yield curve pans out.
- Although debatable, our models forecast an all-in return above 10%.
- A peer-based analysis suggests that FALN has a best-in-class expense ratio.
- We are bullish about this Fallen Angels ETF's prospects.
Today's focus shifts to the iShares Fallen Angels USD Bond ETF (NASDAQ: FALN ) . We decided to assess the ETF's prospects due to the embedded volatility in the bond market and the uncertainty surrounding the trajectory of credit risk. Moreover, the FALN ETF's market value has increased by more than 5% in the past year, meaning numerous investors might want to reassess their exposure.
Herewith is our take on FALN ETF.
FALN ETF's Recent Performance
The following diagram shows that most of the FALN Bond ETF's returns have arrived via dividends, dictating a holistic analysis. Moreover, a closer look at the FALN ETF's recent price return illustrates cyclicality, bringing forth an opportunity to analyze it from an active vantage point....
FALN ETF: As Smooth As High-Yield Gets