MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Friday, September 21, 2012 M* Likes a Junk Bond ETF In a research article, Morningstar analyst Samuel Lee makes a spirited case for a Pimco [profile] junk bond. Although he writes in this article that "I dislike most junk-bond exchange-traded funds," because "with their coupons counted as ordinary income, they're the tax man's best friend," he admits to a liking for the PIMCO 0-5 Year High Yield Corporate Bond Index ETF. Lee's reason: The index of the ETF "doesn't kick out bonds with maturities lower than one year." This fund, according to Lee, gains by buying the bonds that the bigger index funds do not want. The Pimco ETF, with a 55 basis point expense ratio, is "more of a buy-and-hold fund," writes Lee. Printed from: MFWire.com/story.asp?s=41336 Copyright 2012, InvestmentWires, Inc. All Rights Reserved |