Should I Buy Fallen Angel High Yield Bond ETF (ANGL)? Finance YouTuber Analysis

The YouTuber favors ANGL for its strong 4.9% yield and higher returns, investing in bonds that were downgraded from investment grade but still maintain relatively safe profiles. He notes that these 'fallen angels' often have lower default rates and have historically outperformed broader high-yield indexes, providing a monthly dividend and holding up well during stock market stress.

“The Fallen Angel high yield Bond ETF ticker am NGL is one of my favorite bond funds for its strong 4.9 yield and higher Returns the fund invests in bonds that were issued with an investment grade rating so a strong financial rating would have then been downgraded into high yield”

The YouTuber suggests ANGL for its strong 4.3% dividend and potential upside. It invests in bonds downgraded from investment grade, which often leads to higher yields as the price drops, but these companies are still considered solid with low default rates, historically outperforming the broader high-yield index.

“The Vanek Fallen Angel high yield Bond ETF ticker angl is another with a little higher risk but a strong 4.3 percent dividend and good potential upside.”

The YouTuber recommends ANGL, which invests in 'fallen angel' bonds that were downgraded from investment grade to high yield. These bonds offer higher interest rates because their price drops post-downgrade, but they are still from solid companies with low default rates. The fund has historically outperformed broader high-yield indexes and offers a good dividend yield with a low expense ratio.

“What happens is when these fallen angels get downgraded the price of the bonds comes down but they're still paying that same coupon amount so the interest rate is going to go up.”