Q: In your Income Model Portfolio XHY shows a negative 24% return since inception, yet it yields 5.99%. I've held it in my RIF for many years but its price history is weak. Is this a good time to add or a value trap?
Can you suggest better options?
Can you suggest better options?
5i Research Answer:
XHY got hit in the interest rate spike in 2022. But performance has improved (our portfolios show price but dividends are included in total returns). %-year is now 3.10%. One year is 7.42%. With rates heading lower performance should continue to be decent and we would be fine continuing to hold this as a solid ETF for the US high yield sector.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in XHY.