ANGL: High Yield At 6% Is Not Appealing (Rating Downgrade)
Summarize this article with:
Binary Tree Analytics5.49K FollowersFollow5ShareSavePlay(9min)CommentsSummaryVanEck Fallen Angel High Yield Bond ETF (ANGL) is downgraded to 'Hold' due to historically tight BB spreads after a strong 2025 performance.ANGL’s portfolio is 78% BB-rated bonds, emphasizing safer high yield, with sector concentration in consumer cyclical, basic materials, and technology.The ETF’s 2025 total return exceeds 8%, but current risk/reward is unattractive as spreads are near historic lows, limiting further upside.While high yield remains a portfolio staple, we are underweighting ANGL versus cash given stretched valuations and potential for wider spreads. cagkansayin/iStock via Getty Images Thesis We have not covered the VanEck Fallen Angel High Yield Bond ETF (ANGL) for almost two years now. In our last piece we assigned the ETF a 'Buy' rating given attractive spreads at theThis article was written byBinary Tree Analytics5.49K FollowersFollowWith an investment banking cash and derivatives trading background, Binary Tree Analytics ('BTA') aims to provide transparency and analytics in respect to capital markets instruments and trades. BTA focuses on CEFs, ETFs and Special Situations, and aims to deliver high annualized returns with a low volatility profile. We have been investing for over 20 years after obtaining a Finance major at a top university.Analyst’s 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. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You