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Author: aleax Big gold star, 5000 posts Top Favorite Fools Global Fool Pro Community Winner Motley Fool One Everlasting Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35468  
Subject: Re: Which is better, HYG or JNK? Date: 12/17/2013 12:24 AM
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Is there are reasons to prefer one over the other?

They track each other closely, as index-trackers will.

Indexing is crazy in debentures, esp. junk bonds. Give me sensible active management anytime. My bet's on HYLD, and has been for a while (an outsize position within my debentures allocation).

See https://www.google.com/finance?chdnp=0&chdd=1&chds=1... :

over 1 year, HYG -0.30%; JNK -0.47%; HYLD +3.74%.

And that's besides the fact that while HYG and JNK pay coupons of about 6.13% and 6.09%, HYLD pays a far juicier 7.67%. This is all _after_ expenses/fees so the fact that HYG and JNK charge lower ones is no excuse. See http://www.advisorshares.com/fund/hyld for many useful links to materials about HYLD and why it's better;-).
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