JNK - JNK: Why Junk Bonds Live Up To Their Name
2024-03-07 17:39:20 ET
Summary
- SPDR Bloomberg High Yield Bond ETF offers broad diversification and a high yield, but the current macro environment suggests avoiding high-yield bonds.
- The JNK ETF has a well-diversified portfolio and a decent yield, but other ETFs offer even higher yields with high-quality companies among their holdings.
- The JNK ETF's extra return compared to safer government bonds is slim, and its performance track record shows a consistent decline in value.
There are plenty of aspects an investor may like about SPDR® Bloomberg High Yield Bond ETF (NYSEARCA: JNK ). Broad diversification combined with a high yield seems like an appealing option, though the devil is in the details....
JNK: Why Junk Bonds Live Up To Their Name