ETF Research and Analysis
by Alex Bryan
Suitability
PowerShares Fundamental High Yield Corporate Bond PHB offers an elegant way to get exposure to the high-yield bond market. It invests in corporate bonds with between one and 10 years until maturity that either Moody's or Read more
PowerShares Fundamental High Yield Corporate Bond PHB offers an elegant way to get exposure to the high-yield bond market. It invests in corporate bonds with between one and 10 years until maturity that either Moody's or Read more
Bull Case
BB rated bonds, which account for more than half of the portfolio, historically have offered the highest 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 companies. Read more
Bear Case
The spread between investment-grade and high-yield bonds is currently lower than its historic average.
If conditions in Europe deteriorate, credit spreads could widen.
PHB has experienced significant tracking error. Read more
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