UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: Wradical Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35272  
Subject: Re: Which is better, HYG or JNK? Date: 12/12/2013 10:53 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 4
Is there are reasons to prefer one over the other?
================================
Not much.

Their charts and YTD returns are just about the same. Their top 10 holdings both include Sprint, Reynolds, HCA, and Hawk Acquisition. They might even be using the same index, with variations. I don't remember the whole history of Barclays and Blackrock, that wouldn't surprise me.

I don't agree with Brewer; no, I wouldn't short either one. I don't play the bond market for short-term action. In the long run, junk bonds give a decent return for less risk than stocks.

I'm not particularly down on junk funds; buying individual bonds is absolutely no fun these days.

ETFs give you liquidity and low expense ratios. But the market can give you more volatility than a traditional (actively managed) fund.

I've owned HYG in the past. Currently I own TIYRX (TIAA-CREF's high yield fund.) Not real exciting lately. But then, bond investing would be a strange place to look for excitement.

Bill
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next

Announcements

2013 Feste Award Voting Begins!
Who will win the 2013 Feste Award? Vote now for the Fool that most exemplifies the Fool Community mission of Learning Together!
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.
Post of the Day:
Tax Strategies

TMFPMarti-Feeling Good
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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 "#1 Media Company to Work For" (BusinessInsider 2011)! 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.
Advertisement