PSKY News & Analysis

ANGL ETF Offers 6% Yield by Buying Formerly Investment-Grade Bonds

The VanEck Fallen Angel High Yield Bond ETF (ANGL) provides approximately 6% yield by investing in formerly investment-grade bonds that were downgraded, outperforming the 10-year Treasury’s yield of 4.5%. The fund maintains a portfolio that behaves less like stocks during credit selloffs, with 91% of its assets in debt securities. Paramount Global (PSKY) and Celanese (CE) each account for about 8% of ANGL's holdings. This unique strategy may appeal to income investors seeking yield without the risks associated with lower-grade bonds.