Using ANGL And SHY To Micro-Strategy A 4.64% Yield

Here's an interesting idea for investors not modeling in a rate hike in the near or midterm.I was running some hypotheticals with some modeling software and came to some very interesting conclusions in regards to the Market Vectors Fallen Angel Bond ETF (NYSEARCA: ANGL).For clarity before we get started, ANGL has a prospectus stated investment objective:To replicate as closely as possible, before fees and expenses, the price and yield performance of The BofA Merrill Lynch U.S. Fallen Angel High Yield Index (the "Fallen Angel Index"). The BOFA Fallen Angel Index is: Comprised of below investment grade corporate debt instruments denominated in U.S. dollars that were rated investment grade at the time of issuance. ANGL tries to achieve a high yield with as little risk exposure as possible investing almost exclusively in "fallen angels" as detailed above. A more granular look at its holdings is available further into the article.In regards to my hypotheticals first I tested (free of Sharpe and Sortino) ANGL's performance against a basket of other high yield bond ETF's to see if Fallen Angel's actually outperform their peers in the investment grade high yield categories. It turns out they do: ANGL has been plotted using green dots: Peers used were: Market Vectors Fallen Angel Bond ETF iShares iBoxx $ High Yield Corporate Bond ETF (NYSEARCA: HYG) Guggenheim BulletShares 2015 High Yield Corporate Bond ETF (NYSEARCA: BSJF) BulletShares 2016 High Yield Corporate Bond... Read more