Originally Posted by dex
Two things I think you need to research.
1. How does it trade versus stocks - look at the charts - same as or different?
2. What is the interest rate spread versus compritable length US government bonds? Is the risk justified?
Let us know what you find out.
I was suggesting looking at the chart for the s&p and the junk fund to see if the junk fund has a positive, negative or neutral correlation to stocks. I haven't looked at the chart.
Others has stated, as I believe, that the price premium between junk and US bonds does not justify the risk.
I have junk funds on my buy list --- when the price premium warrents it.