First Trust Tactical High Yield ETF

HYLS is an actively managed fund holding up to 130% in long positions in high yield bonds it expects to outperform, and up to 30% short positions in issues it expects to underperform.

VanEck Fallen Angel High Yield Bond ETF

Xtrackers USD High Yield Corporate Bond ETF

High-yield corporate bonds are generating strong returns this year, helped by higher interest rates by the Federal Reserve. Most of these ETFs are yielding over 6%, higher than short-term government bonds and dividends.

Junk bonds: Avoid the HYLS ETF and buy ANGL and HYLB instead

HYLS offers a 6.0% yield and has outperformed most peers since inception. HYLS is riskier and pricier than its peers, with a 1.27% expense ratio. I rank HYLS as a buy, but I think there is a better alternative.

HYLS: Strong High-Yield Corporate Bond ETF, 6% Yield

iShares Fallen Angels USD Bond ETF

SPDR Portfolio High Yield Bond ETF

Federal Reserve hikes have caused yields to increase across fixed-income asset classes. High-yield bonds and bond funds offer particularly high, growing yields. An overview of four of these funds follows.

4 Strong High-Yield Corporate Bond ETFs, With Yields Of 5.2% - 7.4%

First Trust Enhanced Short Maturity ETF

iShares iBoxx High Yield Corporate Bond ETF

JPMorgan Equity Premium Income ETF

iShares 0-3 Month Treasury Bond ETF

First Trust TCW Unconstrained Plus Bond ETF

By Elisabeth Kashner, CFA | August 2, 2023 In the U.S., ETF fee compression slowed dramatically in the first half of 2023. This year in the six months through June 2023, ETF expenses fell just 0.

U.S. ETF Fee Compression Slows

First Trust Tactical High Yield ETF holds a significant percentage of low-rated junk bonds that have high default rates, especially during economic downturns. The junk bond spread over 10-year treasury bonds is below the historic trend line, suggesting that the risks of junk bonds are not adequately priced in. I rate HYLS a Sell.

HYLS: Even With An 8+% Yield, This Junk Bond ETF Isn't Worth It

High yield corporate bond ETFs offer investors strong, growing dividends. HYLS is a strong high yield corporate bond ETF, yielding 6.3%.

HYLS: Strong High Yield Corporate Bond ETF, 6.3% Yield

iShares Core U.S. Aggregate Bond ETF

iShares TIPS Bond ETF

Vanguard Intermediate-Term Corporate Bond ETF

For income investors, the bright side to the bear market in the first half of 2022 is that yields are higher than they have been in quite a while.

It's Time for Income Investing to Shine Again

Ares Dynamic Credit Allocation Fund

Invesco BulletShares 2023 High Yield Corporate Bond ETF

First Trust TCW Opportunistic Fixed Income ETF

Hartford Municipal Opportunities ETF

VanEck High Yield Muni ETF

SPDR Nuveen S&P High Yield Municipal Bond ETF

JPMorgan High Yield Research Enhanced ETF

Invesco KBW Premium Yield Equity REIT ETF

PIMCO Enhanced Short Maturity Active ETF

Virtus Newfleet Multi-Sector Bond ETF

Virtus InfraCap U.S. Preferred Stock ETF

WisdomTree CBOE S&P 500 PutWrite Strategy Fund

Global X NASDAQ 100 Covered Call ETF

Virtus Seix Senior Loan ETF

Global X SuperDividend REIT ETF

 SPDR Blackstone Senior Loan ETF

Vanguard Short-Term Corporate Bond ETF

Vanguard Mortgage-Backed Securities ETF

Vanguard Real Estate ETF

Global X S&P 500 Covered Call ETF

In counter-cyclical investing, we want to buy CEFs when discounts are wide and sell them when discounts are tight. The problem we run into is that when we swap, we give up the upside of the NAVs should the bull market continue. We also give up higher income streams.

Swap Options For Reducing Discount Risk And Not Sacrificing A Ton Of Yield

HYLS invests in high yield corporate bonds. The fund offers investors a stable share price and 5.2% yield.

HYLS: Strong And Simple High Yield ETF, 5.2% Yield

At first glance, the First Trust Tactical High Yield ETF (NASDAQ: HYLS), an actively managed ETF that tracks high-yield debt securities rated below investment grade, appears to be a tempting income-generating idea at a time when Treasury yields are low. Indeed, HYLS’ yield of 5.35% is alluring and the fund has some history of outpacing [.

Be Careful With This Junk Bond ETF

iShares Interest Rate Hedged High Yield Bond ETF

VanEck International High Yield Bond ETF 

Speaking of junk bond ETFs, these funds are usually solid avenues for investors looking to tap high-yield corporate and plenty of those funds come with favorable costs. In fact, many professional investors have, in recent years, increasingly turned to junk bond ETFs over individual issues as a means of sourcing better liquidity.

3 Junk Bond ETFs to Ditch Right Now

BB-rated bonds have outperformed CCC-rated bonds over the last year and the spread between two has widened to multi-year highs.

News for First Trust Tactical High Yield ETF ETF (HYLS)