FDHY: Among The Best Junk Bond ETFs

Summary

  • FDHY uses an active, research-driven approach to select high-yield bonds, focusing on short maturities and risk management.
  • The ETF has outperformed a high-yield benchmark and major competitors in total return and Sharpe ratio.
  • Junk bond ETFs are a questionable choice for the long term; they may be better used in tactical allocation strategies.
  • FDHY is a relatively good pick in this risky asset category.
  • Quantitative Risk & Value members get exclusive access to our real-world portfolio. See all our investments here »

Document with title junk bond on a table. Selective focus.

designer491

This article updates my review of FDHY published in October 2024 in light of current holdings and recent performance.

Strategy

Fidelity High Yield Factor ETF (NYSEARCA:FDHY) is an actively managed high-yield bond ETF launched on 6/12/2018. It has

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This article was written by

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Fred Piard, PhD. is a quantitative analyst and IT professional with over 30 years of experience working in technology. He is the author of three books and has been investing in data-driven systematic strategies since 2010.

Fred runs the investing group Quantitative Risk & Value where he shares a portfolio invested in quality dividend stocks, and companies at the forefront of tech innovation. Fred also supplies market risk indicators, a real estate strategy, a bond strategy, and an income strategy in closed-end funds. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of ANGL 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.

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About FDHY ETF

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FDHY
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