HYG Vs. LQD: Excess Returns With Lower Duration, Minor Credit Risk Increase
Portfolio Pulse from
The article compares two ETFs, HYG and LQD, highlighting that HYG offers excess returns with lower duration but comes with a minor increase in credit risk compared to LQD.
February 24, 2025 | 12:45 am
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NEUTRAL IMPACT
LQD is compared to HYG, with HYG offering excess returns and lower duration, but LQD has lower credit risk.
LQD is presented as having lower credit risk compared to HYG, which may appeal to more risk-averse investors. However, it does not offer the same level of excess returns as HYG.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 100
POSITIVE IMPACT
HYG offers excess returns with lower duration compared to LQD, but with a minor increase in credit risk.
HYG is highlighted for its potential to offer higher returns with lower duration, which is attractive to investors seeking yield. The minor increase in credit risk is a consideration but may not outweigh the benefits for some investors.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100