High Yield Bond ETF - A Unique Double Digit Opportunity
Investing with a High Yield Bond ETF is a great way to both achieve higher yields than Treasuries or most dividend paying stocks while diversifying risk across various sectors and credit ratings. Many Junk Bond ETFs hold a diverse set of corporations, which protects the overall portfolio from risk of simultaneous default given the low likelihood of a complete economic collapse in all sectors. Tax Efficient Investing By investing in a High Yield Bond ETF in a self-directed IRA or other tax protected account, you can continue to receive income for years while deferring taxes until later, thus further compounding your returns. Regardless of your approach, now is an opportune time to consider these great income ETFs as part of your investment portfolio.
Investors should consider that the rate of corporate defaults does increase during time of recession, especially at the tail end. However, the market has already priced in this historical performance, and then some, given the lack of liquidity and fear that still grips the market.
More High Yield Bond Investment Options
High Yield Real Estate Investment Trusts (REITs)
High Yield Utility Stock ETFs
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