JBBB: Buy Investment-Grade Obligations, Get Paid More Than High Yield
Portfolio Pulse from
JBBB has outperformed both high-yield and investment-grade bond funds since its launch in January 2022, offering a higher yield-to-worst of 7.72% with minimal credit and interest rate risk. It provides robust sector diversification, reducing exposure to financial institution risks compared to LQD.
February 10, 2025 | 6:00 pm
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NEGATIVE IMPACT
HYG offers a yield-to-worst of 7.01% but with a higher risk profile compared to JBBB, which may make it less attractive to risk-averse investors.
HYG's yield-to-worst is lower than JBBB's, and it carries a higher risk profile. This may lead investors to prefer JBBB, potentially impacting HYG's attractiveness and price negatively.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 70
NEGATIVE IMPACT
LQD has higher exposure to financial institution risks compared to JBBB, which may make it less appealing to investors seeking diversified sector exposure.
LQD's higher exposure to financial institution risks compared to JBBB may deter investors seeking diversified sector exposure, potentially impacting its attractiveness and price negatively.
CONFIDENCE 80
IMPORTANCE 65
RELEVANCE 60
POSITIVE IMPACT
JBBB has consistently outperformed high-yield and investment-grade bond funds, offering a higher yield-to-worst of 7.72% with minimal risk. Its sector diversification reduces exposure to financial institution risks.
JBBB's performance and yield-to-worst of 7.72% surpass those of high-yield and investment-grade bond funds, making it an attractive option for investors. Its sector diversification further enhances its appeal by reducing financial institution risk exposure.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100