Fallen Angel ETF Flies High Against Rival Bond Funds

Angel is a fund known for tracking an index of U.S. dollar-denominated corporate bonds downgraded to junk status. These bonds are often oversold, presenting rebound opportunities. Angel's holdings span commodities, telecom, and banking, with a quarter of companies based overseas. The fund has $1.1 billion in assets and a 35 basis point expense ratio. Since its 2012 launch, Angel has outperformed high yield and investment grade bonds by 30-40 percentage points, offering a 5.6% yield. However, it receives a yellow light in Bloomberg's system due to less liquid high yield bonds.

What type of bonds does the Angel fund primarily invest in?

• Foreign currency bonds

• Corporate bonds downgraded to junk status

• Government bonds

• Municipal bonds

Which industries are most represented in Angel's holdings?

• Real estate, utilities, and energy

• Technology, healthcare, and retail

• Commodities, telecom, and banking

• Automotive, aerospace, and defense

What is the expense ratio of the Angel fund?

• 55 basis points

• 45 basis points

• 35 basis points

• 25 basis points

How has the Angel fund performed compared to high yield and investment-grade bonds?

• Matched the performance of both

• Outperformed both by 30 and 40 percentage points, respectively

• Outperformed high yield but underperformed investment-grade bonds

• Underperformed both by 10 percentage points

What is the Bloomberg Intelligence Traffic light system's rating for Angel?

• Green light for high liquidity

• Yellow light for less liquid holdings

• Blue light for stable returns

• Red light for high risk