FALN Crowded With Sellers
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 16 2024
0mins
Should l Buy FALN?
Source: NASDAQ.COM
- iShares Fallen Angels USD Bond Analysis: The RSI reading for FALN is 29.8, indicating potential exhaustion of heavy selling.
- Stock Performance: FALN's 52-week range is $24.12 to $26.915, with the last trade at $26.09 and a current decrease of 0.5%.
- Investor Perspective: A low RSI reading like FALN's 29.8 could be seen as an opportunity for bullish investors to consider entry points on the buy side.
- Oversold Stocks: The article mentions 9 other oversold stocks that readers may want to explore further.
- Disclaimer: The views expressed in the article are those of the author and not necessarily reflective of Nasdaq, Inc.
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Analyst Views on FALN
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
iShares Fallen Angels USD Bond ETF announces dividend of $0.1424
iShares Fallen Angels USD Bond ETF Dividend Announcement
- Dividend Declaration: The iShares Fallen Angels USD Bond ETF (NASDAQ: FALN) has declared a monthly dividend of $0.1424 per share.
- Payment Details: This dividend is payable on September 5, with shareholders of record as of September 2. The ex-dividend date is also September 2.
Investment Insights
- Reasons to Invest: There are three compelling reasons highlighted for considering investment in this high-yield bond ETF, suggesting potential benefits for investors.
- Quant Rating: Seeking Alpha has provided a Quant Rating for the iShares Fallen Angels USD Bond ETF, indicating a structured evaluation of its performance and investment potential.
- Dividend Scorecard: The ETF's dividend scorecard offers insights into its dividend performance, which is crucial for income-focused investors.
See More
iShares Fallen Angels USD Bond (FALN) Shares Cross Above 200 DMA
FALN Stock Performance: FALN's stock has a 52-week low of $24.82 and a high of $27.43, with the last trade recorded at $26.82.
Market Insights: The article mentions other ETFs that have recently crossed above their 200-day moving average, indicating potential market trends.
See More
Junk Bonds Have a ‘Fallen Angel’ Problem
Junk Bonds Performance: Junk bonds have performed well due to a strong economy and falling interest rates, with the largest junk-bond ETF returning 14% over the past year. However, the share of "fallen angels" in the market has dropped to a record low of 4.2%, indicating fewer opportunities for investors to buy relatively healthy high-yielding debt.
Future Outlook for Investors: The decline in fallen angels may signal lower future returns for junk bonds, as they typically outperform original high-yield issues. Investors are advised to consider targeting funds focused on fallen angels or maintaining a broad-based bond portfolio amidst narrow spreads.
See More
With yields around 7%, fallen angel ETFs have outperformed — but come with risks
- Overview of Fallen Angels Bonds:
- "Fallen angels" bonds are those downgraded from investment grade to high yield, currently outperforming.
- Only two ETFs invest in this space: iShares Fallen Angels USD Bond ETF (FALN) and VanEck Fallen Angel High Yield Bond ETF (ANGL).
- Investment Opportunities:
- Supply-demand imbalance due to forced selling by institutional investors can present opportunities for investors.
- Fallen angel bonds have historically outperformed high yield and investment-grade bonds over time.
- Performance and Tracking:
- FALN and ANGL are part of Bank of America's dynamic prudent yield strategy, showing better backtested returns.
- These bonds are currently above the 10-month moving average and have been performing well.
- Risks and Considerations:
- Fallen angel portfolios are higher quality but face risks of further credit downgrades and interest rate risks.
- Historical data shows volatility in performance compared to other bond funds during market corrections.
- Recommendations:
- Suggested small allocation to fallen angels for portfolio diversification rather than a significant investment.
See More
With yields around 7%, fallen angel ETFs have outperformed — but they come with some risks
- Overview of Fallen Angels Bonds:
- These bonds are downgraded from investment grade to high yield.
- Only two ETFs, FALN and ANGL, invest in this space.
- Supply-demand imbalance causes short-term price drops.
- Performance and Strategy:
- Bank of America's prudent yield strategy includes these bonds.
- Fallen angels have outperformed U.S. Aggregate Bond Index and Treasurys this year.
- Tracking and Historical Data:
- FALN and ANGL track different indexes.
- Historical data shows higher annualized returns for fallen angels compared to high yield and investment-grade bonds.
- Risks and Considerations:
- Fallen angel portfolios are higher quality but face credit downgrade risks.
- Longer duration and interest rate risk associated with fallen angels.
- Recommendations:
- Advised to allocate a small portion to fallen angels for portfolio diversification.
- Fallen angel funds can be riskier and more volatile than core bond funds.
See More
FALN Crowded With Sellers
See More
iShares Fallen Angels USD Bond ETF announces dividend of $0.1424
iShares Fallen Angels USD Bond ETF Dividend Announcement
- Dividend Declaration: The iShares Fallen Angels USD Bond ETF (NASDAQ: FALN) has declared a monthly dividend of $0.1424 per share.
- Payment Details: This dividend is payable on September 5, with shareholders of record as of September 2. The ex-dividend date is also September 2.
Investment Insights
- Reasons to Invest: There are three compelling reasons highlighted for considering investment in this high-yield bond ETF, suggesting potential benefits for investors.
- Quant Rating: Seeking Alpha has provided a Quant Rating for the iShares Fallen Angels USD Bond ETF, indicating a structured evaluation of its performance and investment potential.
- Dividend Scorecard: The ETF's dividend scorecard offers insights into its dividend performance, which is crucial for income-focused investors.
See More
iShares Fallen Angels USD Bond (FALN) Shares Cross Above 200 DMA
FALN Stock Performance: FALN's stock has a 52-week low of $24.82 and a high of $27.43, with the last trade recorded at $26.82.
Market Insights: The article mentions other ETFs that have recently crossed above their 200-day moving average, indicating potential market trends.
See More
Junk Bonds Have a ‘Fallen Angel’ Problem
Junk Bonds Performance: Junk bonds have performed well due to a strong economy and falling interest rates, with the largest junk-bond ETF returning 14% over the past year. However, the share of "fallen angels" in the market has dropped to a record low of 4.2%, indicating fewer opportunities for investors to buy relatively healthy high-yielding debt.
Future Outlook for Investors: The decline in fallen angels may signal lower future returns for junk bonds, as they typically outperform original high-yield issues. Investors are advised to consider targeting funds focused on fallen angels or maintaining a broad-based bond portfolio amidst narrow spreads.
See More
With yields around 7%, fallen angel ETFs have outperformed — but come with risks
- Overview of Fallen Angels Bonds:
- "Fallen angels" bonds are those downgraded from investment grade to high yield, currently outperforming.
- Only two ETFs invest in this space: iShares Fallen Angels USD Bond ETF (FALN) and VanEck Fallen Angel High Yield Bond ETF (ANGL).
- Investment Opportunities:
- Supply-demand imbalance due to forced selling by institutional investors can present opportunities for investors.
- Fallen angel bonds have historically outperformed high yield and investment-grade bonds over time.
- Performance and Tracking:
- FALN and ANGL are part of Bank of America's dynamic prudent yield strategy, showing better backtested returns.
- These bonds are currently above the 10-month moving average and have been performing well.
- Risks and Considerations:
- Fallen angel portfolios are higher quality but face risks of further credit downgrades and interest rate risks.
- Historical data shows volatility in performance compared to other bond funds during market corrections.
- Recommendations:
- Suggested small allocation to fallen angels for portfolio diversification rather than a significant investment.
See More
With yields around 7%, fallen angel ETFs have outperformed — but they come with some risks
- Overview of Fallen Angels Bonds:
- These bonds are downgraded from investment grade to high yield.
- Only two ETFs, FALN and ANGL, invest in this space.
- Supply-demand imbalance causes short-term price drops.
- Performance and Strategy:
- Bank of America's prudent yield strategy includes these bonds.
- Fallen angels have outperformed U.S. Aggregate Bond Index and Treasurys this year.
- Tracking and Historical Data:
- FALN and ANGL track different indexes.
- Historical data shows higher annualized returns for fallen angels compared to high yield and investment-grade bonds.
- Risks and Considerations:
- Fallen angel portfolios are higher quality but face credit downgrade risks.
- Longer duration and interest rate risk associated with fallen angels.
- Recommendations:
- Advised to allocate a small portion to fallen angels for portfolio diversification.
- Fallen angel funds can be riskier and more volatile than core bond funds.
See More
FALN Crowded With Sellers
See More
