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Compare and Contrast EFT's. Differences, Similarities, and Contrast between High Yield iShares ITF, AGG iShares ETF.

Essay Instructions:

Find the fact sheets for the following three funds:



HYG Ishares ETF



AGG Ishares ETF



PIMCO Total Return Fund



Write a short (less than two pages, doubled space) report comparing and contrasting the three funds. I am purposely not telling you what components or attributes of the funds I want you to focus on.



But here is a hint: We talked about credit, rates, and negatively convex investments.



You DO NOT need to include the fact sheets. Just turn in your report.

Essay Sample Content Preview:

Differences, Similarities, and Contrast between High Yield iShares ITF, AGG iShares ETF
And PIMCO Total Return Fund
Student’s name
Institutional Affiliation
Course
Corse Code
Professor’s Name
Submission Date
High Yield iShares ITF
High Yield iShares ITF offers investors exposures to debts issued by investment-grade corporations (Meziani, 2006). The ETFs invest in senior loans, junk bonds and global investments grade debt. ETFs are regarded to be investments that are of low-risk as a result of their low-cost and hold other securities hence increasing diversification. But, unique risks can be deduced from holding ETFs, and special attention paid to taxation depending on ETF type. However, ETFs are subject to market fluctuations and the risks of their underlying investments. ETFs are subject to management fees and other expenses. Also, HYG ETF is usually exempted from federal income tax, but since they geographically hold mixed portfolios of debt, they may be subjected to the local and state income taxes of an investor. But overall, HYG is a good investments that is regarded to be “Strong Buy” in POWR rating systems with a grade of “A” for Trade Grade, Industry rank, and Buy & Hold Grade. Internationally it is positioned as the number 1 out of 53 ETFs in the High Yield Bond ETFs group. Also, High Yield Shares ITFs pay out interests through monthly dividends and pays-out capital gains through annual dividends. For taxation reasons, these dividends are treated as either capital or income gains.
AGG iShares ETF
Unlike High Yield iShares ITF that offers investors exposures to debts issued by investment-grade corporations, AGG iShares ETF is one of the greatest, core investment-grade bond strategies (Dilellio, 2006). It is a conservative portfolio and one of the low expenses ratios in the intermediate core shares Morningstar Category, earning Silver in the Morningstar Analyst Rating. AGG holds a substantial amount of treasury shares and mortgage shares. The iShares ETF tracks investments result of the index that composes of the total investments-grade of the US bond and shares market in the US. The fund puts its investments in certain representative sampled securities in the Aggregate Bond Index that collectively has an investment profile like the Index.
Compared to HYG, according to ETF.com, AGG has higher investment returns than HYG...
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