An ETF That Invests in DOWNGRADED Bonds???

So for me, the winner here is um I I like the um idea behind the strategy.

So from a yield perspective, it's going to have attractive yields.

The concept here is and it's it's pretty well documented over history that when a bond is issued, if it's investment grade and over time it downgrades to below investment grade, it does tend to stay higher up in quality even after the downgrade versus other high yields.

So it doesn't tend to move downwards um as much or as quickly as something that's issued as uh below investment grade at the start.

The other thing is that the market knows when a when a company is on watch and is likely to be downgraded.

So most of the the selloff in the security happens before it actually gets downgraded.

So the opportunity is to buy it once it is because all of the all of the selloff has happened and then you usually get a bounce because the event happened and so now you have transparency and you have forward looking and you can move and consider other aspects of the security at that time like the overall well-being of the company and so on.

Historically, it has been shown that these types of bonds um outperform other high yield vehicles over pretty much every conceivable market environment.

There's a really great chart on the Van site that walks through this.

Um and hopefully we'll have that up on the screen.

But um for me the active management component, it's a very inexpensive fund all things considered as I already pointed out and it's extremely well executed from a standpoint of the strategy and the the actual academics behind it support that this is a strategy and an approach that should outperform over a full market get cycle and also outperform other high yield funds over every conceivable market environment.

So for me, angel is the winner here.