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July 6, 2007
THE FIRST JUNK BOND INDEX FUND
High yield bonds are now well established as a strategic component for multi-asset class portfolios, but it wasn't until earlier this year that junk was packaged in an index fund. The Barclays iBoxx $ High Yield Corporate Bond ETF (Amex: HYG) is the first attempt to offer beta in something close to its pure form from the lesser-rated realm of fixed-income in publicly traded fund. But indexing is tricky when it comes to high yield bonds, as your editor detailed in the July/August issue of Wealth Manager. For a closer look at the fund, what makes it tick and the complications that accompany the task of passively investing in junk via an ETF, read on....
Posted by jp at July 6, 2007 9:47 AM