2024-07-09 05:47:17 ET
Summary
- High-yield bond funds like HYG offer stable and attractive income streams, appealing to retirees seeking passive income.
- That being said, some bad news is emerging for the high-yield space.
- We share our concerns with the sector and with HYG in particular, and we discuss what we like better.
High-yield bond funds like the iShares iBoxx High Yield Corporate Bond ETF ( HYG ) have considerable appeal to income-focused investors, especially retirees who want a dependable source of passive income. This is because they combine the contractual nature of bond interest payments with broad diversification (across 1,233 individual holdings in the case of HYG). This makes the fund's income stream quite stable, and with a yield of nearly 6% in the case of HYG, it becomes a pretty enticing option for people looking to live off of passive income in retirement....
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For further details see:
Very Bad News For High-Yield Bonds: HYG