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Author: Lokicious Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35357  
Subject: Re: Investing in Corporate Bond ETFs Date: 4/24/2004 8:38 PM
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"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.
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