Is there are reasons to prefer one over the other?
As a short? This is not a good time to be buying junk.
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
Is there are reasons to prefer one over the other?They track each other closely, as index-trackers will.Indexing is crazy in debentures, esp. junk bonds. Give me sensible active management anytime. My bet's on HYLD, and has been for a while (an outsize position within my debentures allocation).See https://www.google.com/finance?chdnp=0&chdd=1&chds=1... :over 1 year, HYG -0.30%; JNK -0.47%; HYLD +3.74%.And that's besides the fact that while HYG and JNK pay coupons of about 6.13% and 6.09%, HYLD pays a far juicier 7.67%. This is all _after_ expenses/fees so the fact that HYG and JNK charge lower ones is no excuse. See http://www.advisorshares.com/fund/hyld for many useful links to materials about HYLD and why it's better;-).
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