Some investors like to make interest rate plays, and bond ETFs are a great way to play the yield curve. Junk bond ETFs might be the weapon of choice for investors who have a higher risk tolerance, however.
One of the best advantages of ETFs is the way taxes are calculated on these assets, especially compared with other investments. If you think high-yield ETFs might be the right choice for your trading strategy, here's a list of funds to consider.
Junk Bonds ETF List
- ANGL - VanEck Market Vectors Fallen Angel High Yield Bond ETF
- BSJO - Invesco BulletShares 2024 High Yield Corporate Bond ETF
- EMHY - iShares J.P. Morgan EM High Yield Bond ETF
- FALN - iShares Fallen Angels USD Bond ETF
- GHYB - Goldman Sachs Access High Yield Corporate Bond ETF
- GYHG - iShares US & Intl High Yield Corp Bond ETF
- HYDB - iShares High Yield Bond Factor ETF
- HYEM - VanEck Vectors Emerging Markets High Yield Bond ETF
- HYG - iShares iBoxx $ High Yield Corporate Bond ETF
- HYGH - ProShares High Yield-Interest Rate Hedged ETF
- HYLB - Xtrackers USD High Yield Corporate Bond ETF
- HYLD - High Yield ETF
- HYLS - First Trust Tactical High Yield ETF
- HYLV - IQ S&P High Yield Low-Volatility Bond ETF
- HYS - PIMCO 0-5 Year High Yield Corporate Bond Index ETF
- HYXF - iShares ESG Advanced High Yield Corporate Bond ETF
- HYXU - iShares International High Yield Bond ETF
- HYZD - WisdomTree Interest Rate Hedged High Yield Bond Fund
- JNK - SPDR Bloomberg Barclays High Yield Bond ETF
- JPHY - JPMorgan High Yield Research Enhanced ETF
- PGHY - Invesco Global Short Term High Yield Bond ETF
- PHB - Invesco Fundamental High Yield Corporate Bond ETF
- SHYG - iShares 0-5 Year High Yield Corporate Bond ETF
- SJB - ProShares Short High Yield ETF
- SJNK - SPDR Bloomberg Barclays Short Term High Yield Bond ETF
- UJB - ProShares Ultra High Yield ETF
A Word of Caution
High-yield, or junk, bond ETFs are not for the beginning investor. These ETFs are for traders who use advanced strategies. If this is your first look into high-yield bond funds, be sure to conduct thorough research before you invest.
Each fund on this list should be individually scrutinized. Look what's in the fund or note, watch how it reacts to different market conditions, and examine its historical performance. Contact a financial professional such as your broker or adviser if you have any questions or concerns. No fund—or any investment, for that matter—is without risk, and the high-yield bond ETFs on this list are no exception. They are not for the faint of heart, so due diligence is a must.
When you're satisfied with your research and have made your investing decision, good luck with these trades and all your financial strategies.