ETF Research and Analysis

by John Gabriel
For strategic, long-term exposure to U.S. high-yield bonds, investors may consider PowerShares Fundamental High Yield Corporate Bond Index PHB. The fund also can serve as a tactical investment for the satellite portion   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.
The RAFI weighting approach reduces the fund's exposure to the most heavily indebted issuers.  Read more 

Bear Case

The option-adjusted spread on high-yield bonds is currently lower than its historic average.
The fund has lagged its benchmark by more than the amount of its expense ratio.
JNK offers similar exposure for a lower price.  Read more 

Making the Momentum Effect Work for Your Portfolio 
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