February 19, 2021
Investors are often lead to believe that bonds are steady investments. They can also be wired to think that junk bonds are exceptionally volatile.
Yet many fallen angels funds like the
ANGL seeks to replicate as closely as possible the price and yield performance of the ICE BofAML US Fallen Angel High Yield Index. The index is comprised of below investment grade corporate bonds denominated in U.S. dollars that were rated investment grade at the time of issuance.
“We believe that in this uncertain environment, high yield investors should be selective and focus on fallen angel bonds which are bonds originally issued with investment grade ratings as a potential source of outperformance relative to the broad high yield bond market,” writes William Sokol, VanEck senior ETF product manager. “Fallen angels have provided outperformance in 13 of the last 17 calendar years, a level of consistency that we believe may be attractive in a changing market environment
With the Right Dosage, EM Junk Bonds Like HYEM Can Work Wonders February 16, 2021
The combination of emerging markets and junk bonds may appear to be too risky for many income investors, but with the right methodology investors can dial back some of that risk while grabbing access to higher levels of income.
Enter the
VanEck Vectors EM High Yield Bond ETF (NYSEArca: HYEM). HYEM seeks to replicate the ICE BofAML Diversified High Yield US Emerging Markets Corporate Plus Index, which is comprised of U.S. dollar denominated bonds issued by non-sovereign emerging market issuers that have a below investment grade rating and that are issued in the major domestic and Eurobond markets.
December 14, 2020
An array of asset classes will benefit from the incoming Biden/Harris Administration. Not to be lost in the shuffle are green bonds and the
GRNB tracks the S&P Green Bond Select Index, which is “comprised of labeled green bonds that are issued to finance environmentally friendly projects, and includes bonds issued by the supranational, government, and corporate issuers globally in multiple currencies,” according to VanEck.
Green bonds are debt securities issued to finance projects that promote climate change mitigation or the adaptation of other environmental sustainability purposes. The new breed of green bonds has gained momentum in the global market ever since the European Investment Bank issued the first green bond in 2007. With a new president soon to be inaugurated, plenty of eyes are turning to the U.S. green bond market.
What Does a Biden Administration Mean for U.S. Green Bonds?
By William Sokol, Senior ETF Product Manager, VanEck
Despite lack of federal support from current and previous administrations, the U.S. has a large green bond market comprising corporate, agency and muni issuers with over $200bn of issuance, accounting for 21% of the global market and ranking it #1 in terms of country of issuer.
1 However, the U.S. green bond market is far from where it should be based on the size of its bond market, and even further from where it needs to be to finance a transition to a low carbon economy. There is hope that President-elect Biden’s administration could help spur U.S. green finance and investment, including green bonds. We highlight here a few ways this could happen:
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