The VanEck Fallen Angel High Yield Bond ETF (ANGL) is an exchange-traded fund designed to track the performance of high-yield corporate bonds that were originally issued with investment-grade credit ratings but were subsequently downgraded to below-investment-grade status, commonly known as fallen angels. The ETF is managed by VanEck and trades under the ticker ANGL on the Nasdaq.

Classified as a fixed income ETF, the fund invests in U.S. dollar-denominated corporate bonds issued by companies that have lost their investment-grade credit ratings. Its strategy provides exposure to a distinct segment of the corporate bond market that has historically exhibited different characteristics from the broader high-yield market.

The ETF follows a passive management approach and seeks to replicate the performance of the ICE US Fallen Angel High Yield 10% Constrained Index, which includes U.S. dollar-denominated fallen angel bonds while limiting issuer concentration to enhance diversification.

Diversification and sector exposure

ANGL provides exposure primarily associated with:

• High-yield corporate bonds.

• Fallen angel bonds.

• Corporate credit.

• U.S. fixed income.

• Large corporate issuers.

• Multiple sectors of the economy.

• Credit risk.

• U.S. bond market.

The portfolio includes bonds issued by companies across a wide range of industries that have been downgraded from investment grade but continue to access the capital markets. As a result, the fund provides diversified exposure to the high-yield corporate credit market.

The ETF's performance generally reflects changes in the market value of its underlying bonds as well as the interest income generated through periodic coupon payments.

Structure and costs

ANGL shares trade on the secondary market on the Nasdaq during regular trading hours. Share creation and redemption occur through authorized participants, helping keep the ETF's market price aligned with its net asset value (NAV).

The fund charges a management fee as outlined in its prospectus and does not apply a performance fee. Interest payments received from the portfolio's bond holdings are distributed periodically to shareholders according to the fund's distribution policy.

History and evolution of the ETF

The VanEck Fallen Angel High Yield Bond ETF was launched in 2012 to provide investors with access to the fallen angel segment of the corporate bond market through a rules-based investment strategy.

Since inception, the fund has tracked companies that have lost their investment-grade status, reflecting multiple credit and economic cycles across the U.S. corporate bond market.

Over time, the ETF's performance has been influenced by changes in credit spreads, credit rating downgrade cycles, monetary policy, and broader economic conditions, all of which directly affect the performance of high-yield corporate bonds.

Additional Information

VanEck Fallen Angel High Yield Bond ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $3.05 billion.

Over the past 12 months, VanEck Fallen Angel High Yield Bond ETF recorded a return of 5.84%, with its price trading between $28.41 and $29.75 during the same period.

The ETF is traded under the ticker ANGL.