SPHY - SPHY Vs. FALN: Which High-Yield Corporate Bond ETF Is Best For Retirees?
2024-02-21 17:50:51 ET
Summary
- SPHY and FALN are my top two high-yield corporate bond ETF picks.
- SPHY is a simple high-yield bond index ETF. FALN focuses on fallen angels, some of the best-performing high-yield bonds in the market.
- Both are good funds, with broad similarities, but a few key differences.
The SPDR Portfolio High Yield Bond ETF (SPHY) and the iShares Fallen Angels USD Bond ETF (FALN) are my top two high-yield corporate bond ETFs. Both offer investors strong yields, dividend growth, and total return track-records, and could see moderate capital gains as interest rates stabilize. I've covered both in the past, and they generally have performed quite well. Owing to the strong, but similar, value proposition of both funds, I thought a comparison was in order.
Both funds invest in high-yield corporate bonds. SPHY is a simple, broad-based index fund targeting these securities. FALN focuses on bonds downgraded from investment-grade to non-investment grade ratings....
SPHY Vs. FALN: Which High-Yield Corporate Bond ETF Is Best For Retirees?