Junk-bond ETFs show positive returns while broader bond market struggles

  • Junk-bond ETFs may outperform in 2024
  • High-yield bonds have positive returns for the year
  • Investors concerned about potential recession
  • High-yield bond spreads may widen in a slowing economy
  • Investment approach should include short-term debt and intermediate duration bonds
  • Junk bonds have less duration risk than long-term bonds
  • Vanguard Total Bond Market ETF is suffering losses this year
  • Top-performing ETFs include ProShares Bitcoin Strategy ETF and Bitwise Bitcoin ETF
  • Bottom-performing ETFs include United States Natural Gas Fund LP and AdvisorShares Pure US Cannabis ETF
  • Fidelity Investments planning to launch two actively managed ETFs

Junk-bond ETFs have shown positive returns this year and may outperform in 2024, according to Michael Arone, chief investment strategist at State Street Global Advisors. Despite concerns about a potential recession, high-yield bonds have been resilient in the face of the Federal Reserve’s interest-rate hikes. While the broader bond market remains in the red, high-yield bond spreads may widen in a slowing economy. Arone recommends an investment approach that includes short-term debt and intermediate duration bonds. Junk bonds, with their lower duration risk, are favored over long-term bonds. Meanwhile, top-performing ETFs include ProShares Bitcoin Strategy ETF and Bitwise Bitcoin ETF, while bottom-performing ETFs include United States Natural Gas Fund LP and AdvisorShares Pure US Cannabis ETF. Fidelity Investments is planning to launch two actively managed ETFs later this month.

Companies Public: State Street Global Advisors (Unknown), SPDR Bloomberg High Yield Bond ETF (JNK), iShares iBoxx $ High Yield Corporate Bond ETF (HYG), iShares Core U.S. Aggregate Bond ETF (AGG), Vanguard Total Bond Market ETF (BND), Thornburg Investment Management (Unknown), CreditSights (Unknown), ICE BofA US High Yield Index (Unknown), Dow Jones Market Data (Unknown), SPDR Portfolio Intermediate Term Corporate Bond ETF (SPIB), Vanguard Long-Term Treasury ETF (VGLT), ProShares Bitcoin Strategy ETF (BITO), Bitwise Bitcoin ETF (BITB), ARK 21Shares Bitcoin ETF (ARKB), Grayscale Bitcoin Trust (GBTC), iShares Bitcoin Trust (IBIT), United States Natural Gas Fund LP (UNG), AdvisorShares Pure US Cannabis ETF (MSOS), Global X Silver Miners ETF (SIL), Amplify Junior Silver Miners ETF (SILJ), VanEck Junior Gold Miners ETF (GDXJ), Fidelity Investments (Unknown)
Key People: Michael Arone (Chief Investment Strategist at State Street Global Advisors), Jeff Klingelhofer (Co-Head of Investments at Thornburg Investment Management)

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Factuality Level: 7
Factuality Just: The article provides information about the potential outperformance of junk-bond ETFs in 2024 and the reasons behind it. It includes quotes from investment strategists and data from FactSet. However, the article also includes some unnecessary background information and details that are tangential to the main topic.
Noise Level: 3
Noise Just: The article provides relevant information about the potential outperformance of junk-bond ETFs in 2024 and the factors that may contribute to their success. It includes quotes from investment strategists and data from FactSet. However, there is some noise in the article, such as the inclusion of unrelated information about new ETF launches and weekly ETF reads.
Financial Relevance: No
Financial Markets Impacted: No
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Just: The article focuses on the performance and potential of junk-bond ETFs in the financial markets, without mentioning any extreme events or their impact.

Reported publicly: www.marketwatch.com