High Yield Fixed Income Mutual Funds

High yield fixed income funds.

High yield fixed income mutual funds. Such as a mutual fund or exchange traded fund in which core holdings are fixed income investments. High yield bonds typically have higher yields than investment grade corporate bonds due to the additional credit risk. High yield mutual funds. High dividend mutual funds not only generate income but can also lower risk in an investor s portfolio.

There is a variety of high yield etfs on the market compared to high yield mutual funds. These bonds are issued by corporations and are rated below bbb by s p and or below baa by moody s. The fund is managed by the vanguard fixed income group and charges an annual expense ratio of 0 17 which is more than 75 lower than the average expense ratio of similar municipal bond funds. The best high yield corporate bond funds for 2020 are mwhyx fdhy and hydw.

Inflows into high yield bond mutual funds this year totaled 22 billion through june 8 more than four times during the same period last year according to epfr global. Investors have more opportunity to find yield in a variety of ways which. Dividend strategies are more important currently since interest rates are near zero and. Find the best high yield bond funds which often hold junk bonds with lower credit ratings than investment grade and pay higher yields.

High yield bonds are often referred to as junk bonds due to their low credit ratings. The primary advantages of high yield etfs over high yield mutual funds are low fees diversification and intraday liquidity.