Morningstar’s five-star rating applies to both HYLD’s three-year and overall risk-adjusted performances. HYLD, which is just over three years old, is one of the most successful actively managed ETFs with $472.3 million in assets under management as of Jan. 7, according to AdvisorShares data.
Earning the five-star rating means HYLD was in the top 10% of high yield bond ETFs and mutual funds. The ETF is managed by California-based Peritus Asset Management, which specializes in unearthing opportunities in the high yield corporate and loan markets.
Not only is HYLD’s 30-day SEC yield of 8.24% fatter than many of its passively managed rivals, but the ETF’s duration of about 2.9 years is also lower, indicating the fund has diminished interest rate risk relative to other high yield bond ETFs, an asset where credit, not rate risk is usually investors’ primary concern. HYLD’s duration is nearly a full year lower than that of the Barclay’s U.S. High Yield Index.
Over the past three years, HYLD is up nearly 32%.
Source: Todd Shriber, ETF Trends
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AdvisorShares Peritus High Yield (HYLD) is a component of the D2 Capital Management Multi-Asset Income Portfolio. Disclosure: I own the D2 Capital Management Multi-Asset Income Portfolio
The views expressed here are that of myself or the cited individual or firm and do not constitute a recommendation, solicitation, or offer by myself, D2 Capital Management, LLC or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service. D2, its clients, and its employees may or may not own any of the securities (or their derivatives) mentioned in this article.
The Jacksonville Business Journal has ranked D2 Capital Management in the top 25 of Certified Financial Planners in Jacksonville. The Firm is also a member of the Financial Planning Association of Northeast Florida, the Jacksonville Chamber of Commerce, the Southside Businessmen's Club, and the Beaches Business Association.
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