The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Bonds & Fixed Income Investments


Subject:  Re: Which is better, HYG or JNK? Date:  12/12/2013  10:53 AM
Author:  Wradical Number:  35119 of 36729

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.

Copyright 1996-2020 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us