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Fund Spy

High-Yield State of Mind

Brian Moriarty

A version of this article was originally published in the December 2017 issue of Morningstar FundInvestor. Download a complimentary copy of FundInvestor here.

Despite a few hiccups along the way, high-yield bond funds have been on an impressive run since the 2008 financial crisis. From April 2009 through November 2017, the median high-yield bond fund returned 10.9% annualized. By comparison, the Bloomberg Barclays U.S. Aggregate Bond Index (often used as a proxy for a core investment-grade fixed-income allocation) only returned 4.0% annualized over the same period.

Brian Moriarty does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.