ETF Research and Analysis

by Phillip Yoo, CAIA
Suitability
PowerShares Fundamental High Yield Corporate Bond Portfolio PHB is an index fund that offers an alternative approach to market-cap weighting at a reasonable expense ratio. However, the weighting approach is somewhat arbitrary,  Read more 

Bull Case

BB rated bonds, which account for more than half of the portfolio, have historically offered attractive risk-adjusted returns.
The fund excludes the lowest-credit-quality bonds. Read more 

Bear Case

The fund's weighting approach is not directly related to credit quality or expected returns.
The fund has lagged its benchmark by more than the amount of its expense ratio.
There are cheaper alternatives. Read more 

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