Some investors like to make interest rate plays. And bond ETFs are a great way to play the yield curve. But if you have a high risk tolerance, junk bond ETFs might be a good choice.
One of the best advantages of ETFs is the way taxes are calculated on these assets. This is even more true when compared with other investments. If you think high-yield ETFs might be the right choice for your trading strategy, look into the funds below.
Junk Bonds ETF List
- ANGL: The VanEck Market Vectors Fallen Angel High Yield Bond ETF
- BSJO: The Invesco BulletShares 2024 High Yield Corporate Bond ETF
- EMHY: The iShares J.P. Morgan EM High Yield Bond ETF
- FALN: The iShares Fallen Angels USD Bond ETF
- GHYB: The Goldman Sachs Access High Yield Corporate Bond ETF
- GYHG: The iShares US & Intl High Yield Corp Bond ETF
- HYDB: The iShares High Yield Bond Factor ETF
- HYEM: The VanEck Vectors Emerging Markets High Yield Bond ETF
- HYG: The iShares iBoxx $ High Yield Corporate Bond ETF
- HYGH: The ProShares High Yield-Interest Rate Hedged ETF
- HYLB: The Xtrackers USD High Yield Corporate Bond ETF
- HYLD: The High Yield ETF
- HYLS: The First Trust Tactical High Yield ETF
- HYLV: The IQ S&P High Yield Low-Volatility Bond ETF
- HYS: The PIMCO 0-5 Year High Yield Corporate Bond Index ETF
- HYXF: The iShares ESG Advanced High Yield Corporate Bond ETF
- HYXU: The iShares International High Yield Bond ETF
- HYZD: The WisdomTree Interest Rate Hedged High Yield Bond Fund
- JNK: The SPDR Bloomberg Barclays High Yield Bond ETF
- JPHY: The JPMorgan High Yield Research Enhanced ETF
- PGHY: The Invesco Global Short Term High Yield Bond ETF
- PHB: The Invesco Fundamental High Yield Corporate Bond ETF
- SHYG: The iShares 0-5 Year High Yield Corporate Bond ETF
- SJB: The ProShares Short High Yield ETF
- SJNK: The SPDR Bloomberg Barclays Short Term High Yield Bond ETF
- UJB: The ProShares Ultra High Yield ETF
A Word of Caution
High-yield, or junk, bond ETFs are not for new investors. 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. At that point, you will be better equipped to make the decision to invest.
Each fund on this list should be individually scrutinized. Look what's in the fund or note and watch how it reacts to different market conditions. Also, be sure to examine its historical performance. Contact a financial professional such as your broker or advisor if you have any questions or concerns. No fund—or any investment, for that matter—is without risk. 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.