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Take a look at YTD performance and the attached chart. Compared to peers and the index, Morningstar shows this fund to be in the bottom 5%. Or do I have it reversed in my mind? I'm looking at the "95" number. The chart shows TUHYX to be performing BETTER than those other two items, eh? https://www.morningstar.com/funds/xnas/tuhyx/quote
TUHUX ranked on top quartile in 2019 and 2020, but it ranked in the bottom quartile this year! Being ranked 95% among HY category may help a bit. As of 11/4/22, YTD return of BND is down -16.1% and TUHYX is down -16.7% (and that is too much for me).
The Fed rate is at 4.0% after November rate hike. If the Fed terminal rate is over 5%, it implies that there are more downside to junk bonds going forward.
I would rather buy Treasuries (not funds) and CDs and hold them to maturity in order to get the yields and the bond price at par. Every time the Fed continue to hike rate, your yields go up. And you get your principal back in full.
TUHUX ranked on top quartile in 2019 and 2020, but it ranked in the bottom quartile this year! Being ranked 95% among HY category may help a bit. As of 11/4/22, YTD return of BND is down -16.1% and TUHYX is down -16.7% (and that is too much for me).
Hello, everyone and thanks for the replies. I see a discrepancy, and this is my point: the chart shows a bad year in '22, yes. But at the same time, the chart shows the fund TUHYX to be (slightly) outperforming its Index and peers. WTF?
Comments
I would rather buy Treasuries (not funds) and CDs and hold them to maturity in order to get the yields and the bond price at par. Every time the Fed continue to hike rate, your yields go up. And you get your principal back in full.