Lorne Steinberg iShares US High Yield Bond Index ETF XHY-T DON'T BUY Mar 26, 2019

(Top Pick Mar 14’16, Up 15%) You have to take credit rate rise in the fixed income market. This one is hedged. He switched recently into HYI-T for an active manager.

Which fund would you recommend for high-yield bonds? You are always dealing with US bonds in this one. He would probably look at the ZHY as well as the XHY. Remember, you are not getting the same premium for high-yield that you used to. He would rather buy a Covered Call. He isn’t a big fan of high-yield stuff.

He would look rather at emerging market bonds for income. The credit quality is higher as the US economy is late stage with higher probability of defaults.

Holds investment-grade bonds? Doesn't like it, because "high-yield" means "junk." Never trust yield on a bond or mutual fund. Go beyond the current yield. XBB is fine or ZST.

In general, the high-yield bond market is yielding at least 300-400 bps above investment-grade bonds. This one should have that yield advantage, and if it doesn't, there's an issue. Yield is 5.8%, and the high-yield bond market is yielding over 8%. He's going to take a look at this ETF after the show.

Holds 1,157 issues, all high-yielding. Duration is only 3.4 years, so it's a safe way to play the high yield market. Caveat: the high-yield market and its yields have narrowed so sharply, so this will not be a great performer, but above average in coming years.