This Bond ETF Yields More Than Treasuries. Is the Extra Income Worth the Risk?

Published August 27, 2026 · Category: Finance

Overview

Treasury bonds are offering some of their most attractive yields in years.

The 30-year bond, for instance, recently hit 5.3%, its highest level since 2007. But that yield comes with caveats. It's been moving higher because of concerns about rising debt, deficits, and inflation. Those problems are unlikely to be solved anytime soon.

Details

That's why I believe the iShares iBoxx $ High Yield Corporate Bond ETF (NYSEMKT: HYG) is interesting here with its current yield of 6.5%. It invests in junk bonds, but the health of corporate balance sheets is good enough right now that the risk of investing might be below average.

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Source

Originally published at www.fool.com.

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