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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
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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.

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