JNK: 3.79% Yield Does Not Remotely Compensate For Risks


  • We are fans of getting great risk-adjusted returns.
  • Chasing yield has turned into a national pastime and goes against what one should do today.
  • We highlight the risks here of this fund and tell you what are better alternatives.
  • This idea was discussed in more depth with members of my private investing community, Conservative Income Portfolio. Learn More »

Woman rock climbing

aluxum/E+ via Getty Images

Sometimes the name says it all. Junk bonds, for example, advertise truthfully what they are selling. The ETF we are looking at also has almost the same word as its stock symbol. The SPDR Bloomberg Barclays High Yield Bond ETF (

Are you looking for Real Yields which reduce portfolio volatility?   

Conservative Income Portfolio  targets the best value stocks with the highest margins of safety. The volatility of these investments is further lowered using the best priced options. Our Cash Secured Put Portfolio generated over 15% income in the last 12 months. We focus on being the house and take the opposite side of the gambler. 

Learn more about our method & why it might be right for your portfolio.

This article was written by

Trapping Value profile picture
The best way to provide income in today's markets while reducing risks

Conservative Income Portfolio is designed for investors who want reliable income with the lowest volatility.

High Valuations have distorted the investing landscape and investors are poised for exceptionally low forward returns. Using cash secured puts and covered calls to harvest income off value income stocks is the best way forward. We "lock-in" high yields when volatility is high and capture multiple years of dividends in advance to reach the goal of producing 7-9% yields with the lowest volatility.

Preferred Stock Trader is Comanager of Conservative Income Portfolio and shares research and resources with author. He manages our fixed income side looking for opportunistic investments with 12% plus potential returns. 

Disclosure: I/we have a beneficial long position in the shares of WPC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Recommended For You

Comments (10)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.