ANGL: Better Than JNK But Watch Credit Spreads

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Macrotips Trading


  • ANGL tracks an index of fallen angel bonds: bonds that were investment grade at issuance but have been downgraded to junk status.
  • Fallen angels tend to outperform both investment grade and junk bonds overall due to forced selling as they are downgraded.
  • However, they are still corporate bonds and follow the credit cycle.

Fountain of the Fallen Angel or Fuente del Angel Caido in the Buen Retiro Park in Madrid, Spain inaugurated in 1885


The VanEck Fallen Angel High Yield Bond ETF (NASDAQ:ANGL) provides exposure to 'fallen angel' corporate bonds, which are bonds that were rated investment grade at time of issuance but have been downgraded to junk status. Historically, fallen angels have outperformed both investment grade

Fallen angels tend to outperform

Figure 1 - Fallen angels tend to outperform (

ANGL geographical allocation

Figure 2 - ANGL geographical allocation (

ANGL credit quality allocation

Figure 3 - ANGL credit quality allocation (

ANGL sector allocation

Figure 4 - ANGL sector allocation (

ANGL historical returns

Figure 5 - ANGL historical returns (

JNK historical returns

Figure 6 - JNK historical returns (

LQD historical returns

Figure 7 - LQD historical returns (

S&P BBB downgrades to HY per year

Figure 8 - S&P BBB downgrades to HY per year (

Fallen angels still follow the credit cycle

Figure 10 - Fallen angels still follow the credit cycle (Author created with price chart from and high yield spread from St. Louis Fed)

This article was written by

Macrotips Trading profile picture
I spent 5 years as a co-founder and hedge fund CIO / manager. Before that, I was a hedge fund analyst/portfolio manager at a leading Canadian alternative asset manager. I write articles as part of my own due diligence on the stocks that I find interesting, for one reason or another.Follow me on twitter for my thoughts on macro trends.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

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