http://ift.tt/1NECBeL
Quote:
|
Financial advisors who use ETFs in their clients’ portfolios often tell us they like them because they passively track an index, which in theory keeps costs down, and are highly liquid. But here’s the problem: ETFs have done a poor job of tracking those indices and have steadily underperformed actively managed funds—and they’ve been more volatile. Since the start of 2008, shortly after their inception, the two largest ETFs—HYG and JNK—delivered annualized returns of 6.2% and 6.0%, respectively, well short of the 8.3% annualized return for the Barclays US Corporate High-Yield Index. The top 20% of active high-yield mangers, as rated by Lipper, have also comfortably outperformed these two ETFs. In fact, even the average manager has outpaced them (Display). What’s more, they’ve done it with lower volatility, as measured by risk-adjusted returns. The Sharpe ratio, which measures return per unit of risk, was 0.55 for HYG and 0.49 for JNK. But it climbed to 0.72 for the broad index and 0.76 for the top 20th percentile managers. |
Quote:
|
From both an absolute return and a risk-versus-return perspective, the verdict is clear: high-yield ETFs are a bad long-term investment. |
[text] High Yield ETFs Are a Bad Long Term Investment | AB
Aucun commentaire:
Enregistrer un commentaire