VanEck’s ANGL delivered 75% total return over 10 years, beating HYG’s 57% while yielding 6.5% at half the expense ratio.
The VanEck Fallen Angel High Yield Bond ETF (NASDAQ:ANGL) has outperformed the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) over the past decade, posting a 75% total return versus HYG’s 57%. ANGL yields 6.5% and charges a 0.35% expense ratio, nearly half of HYG’s 0.49%.
ANGL focuses on bonds downgraded from investment grade to junk, capitalizing on forced selling by institutional mandates that creates temporary discounts. HYG, with $15.84 billion in assets, tracks the broader high-yield market without targeting these dislocations. Over the past five years, HYG outperformed ANGL 19% to 15%, partly due to ANGL’s longer duration sensitivity to rising rates.
HYG’s trailing 12-month distributions total $4.706921 per share, equating to a 5.93% yield on its current $79.30 share price. ANGL’s strategy has historically benefited from credit-market inefficiencies, though its performance varies with interest rate movements.