For investors seeking momentum, VanEck Vectors Fallen Angel High Yield Bond ETF ANGL is probably on radar now. The fund just hit a 52-week high, and is up about 25.9% from its 52-week low price of $23.35 per share.
But are more gains in store for this ETF? Let's take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
ANGL in Focus
This ETF focuses on 'fallen angel' bonds, which are high yield securities that were once investment grade but have fallen from grace and are now trading as junk bonds. This unique approach gives the portfolio 240 securities that are widely spread across fallen angels, with none holding more than 1.83% of assets. The fund has an effective duration of 6.28 years and year to maturity of 10.03. It charges 35 bps in annual fees (see: all the Junk Bond ETFs here ).
Why the Move?
The high yield corner of the bond market has been an area to watch lately given the sharp rise in Treasury bond yields. Investors must have been looking for benchmark-beating yields in bond ETFs. With ANGL yielding around 5.36% annually, investors probably bid hard on this product. Additionally, a rebounding oil price is infusing strength into these junk bonds and the ETF, as Energy takes the highest portion of the fund.
More Gains Ahead?
Currently, ANGL has a Zacks ETF Rank #4 (Sell) with a High risk outlook. This indicates the risk involved in the investment. However, investors with a strong stomach for risks can still play it as long as market fundamentals remain the same. This is because the fund has a positive weighted alpha of 20.00 . A positive weighted alpha hints at more gains.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.