No. of Recommendations: 2
"I am thinking about investing in closed end ETFs for corporate bonds (e.g. HYV, LBC, PHY etc.). "

Well, of the three only HYV explicitly calls itself "high yield" (the standard eupemism for junk bonds); PHY calls itself "high income." But you aren't going to get those kinds of yields playing it safe. Vanguard's high yield fund, which sticks to the top tiers of junk, is yielding 6.9%. As Paul said, there may be leveraging factors at work with the closed-end funds that boost the yield beyond just holding the junkier junk, but those pose added risks as well.

As with all things, you get what you pay for.
Print the post  


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.
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.