Over the past few weeks I’ve had a ton of questions from readers regarding the high-yield or “junk” bond market.
I’ve been asked about the risk of high-yield bonds relative to stocks, “high” dividend equity ETFs like the iShares Select Dividend ETF (NYSE: DVY) and Treasuries.
I’ve been asked about why high-yield bonds actually outperformed the broader Bloomberg US Aggregate Bond Index and many popular Treasury Bond ETFs back in 2022 despite higher credit risks.
And I’ve been asked why I recommend “Fallen Angels” and a Fallen Angels ETF rather than a straight high-yield bond ETF even though the latter is outperforming year-to-date in 2025.
Here’s a link to the charts used in this video:
So, I decided to record this video to explain exactly how this market works, some of the main risks involved and why I believe the “Fallen Angels” niche of the high-yield bond market offers a risk-and-return sweet spot for investors:
If you’re not yet a paid-tier reader of Smart Bonds, I’ve decided to re-open my 60-day free trial offer to the service through this Sunday July 20th. That’s available only via this link:
DISCLAIMER: This article is not investment advice and represents the opinions of its author, Elliott Gue. Smart Bonds is NOT a securities broker/dealer or an investment advisor. You are responsible for your own investment decisions. All information contained in our newsletters and posts should be independently verified with the companies mentioned, and readers should always conduct their own research and due diligence and consider obtaining professional advice before making any investment decision.
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