UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: CLTGoBlue Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 25  
Subject: High Yield Bond ETFs ... Date: 8/20/2010 12:51 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
has anyone had experience investing in HY junk bond ETFs? i'm looking at some different options, there's only three to choose from. JNK from SPDR follows the Barclay's HY index, HYG from iShares follows the iBoxx HY Index, and PHB from PowerShares follows the RAFI. the biggest difference between all three is that HYG & JNK follow market weighted indexes, while PHB uses a "fundamental" one. i'm new to this concept, but basically this RAFI company does additional valuations on HY bonds, based on their theoretical ability to repay. while working w/in the corporate junk debt market, they factor in book value & cash flow related information. it seems like a good concept in theory, but i haven't followed a "fundamental index" before. anyone out there have a grasp on what RAFI is all about?

here's a link to RAFI's website: http://www.researchaffiliates.com/rafi/rafi.htm

also, this was a good write up that got me thinking about "fundamental" indexing: http://etfdb.com/2010/powershares-announces-change-to-high-y......
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next


Post of the Day:
Berkshire Hathaway

A Financial Prognostication
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.