ETF Research and Analysis

by Alex Bryan
Traditional market-cap-weighted bond indexes get a lot of flak for assigning the largest weights to the most heavily indebted issuers. For instance, it may not be optimal for investors to hold more General Motors debt just   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 

Low-Cost Exposure to High-Quality Companies 
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