The inconsistent market, made unstable from interest rate uncertainty and global volatility, has proven especially chaotic for high-yield bond funds, many of which suffered outsized losses over the past year as a result.
With investment-grade bonds sold skyrocketing to an "unprecedented" $1.3 trillion and ETFs and mutual funds owning a record 25% of the corporate bond market, it is important to consider the largest 10 high-yield bond funds and how volatility has in many cases led to outsized losses among some of the industry's biggest names, including negative one-year returns amongst the 10 listed funds.
The following list includes these 10 high-yield bond funds sorted by largest loss over the past year (1-yr return percentage). For instance, a value of 10% would indicate that the bond fund's one year return lost 10% of its previous value.
10 Largest High-Yield Bond Funds Ranked by Poorest 1-Year Return Percentage
1. Ivy High Income C (WRHIX): -10.01%, $5.27 Billion in Net Assets.
2. American Funds American High-Inc A (AHITX): -9.84%, $15.09 Billion in Net Assets.
3. JPMorgan High Yield A (OHYAX): -7.13%, $9.10 Billion in Net Assets.
4. BlackRock High Yield Bond Inv A (BHYAX): -6.27%, $15.09 Billion in Net Assets.
5. T. Rowe Price High Yield (PRHYX): -5.32%, $8.64 Billion in Net Assets.
6. Lord Abbett Bond-Debenture A (LBNDX): -5.06%, $8.26 Billion in Net Assets.
7. MainStay High Yield Corporate Bond B (MKHCX): -4.93%, $8.73 Billion in Net Assets.
8. Fidelity Capital & Income (FAGIX): -4.75%, $10.23 Billion in Net Assets.
9. PIMCO High Yield Instl (PHIYX): -4.51%, $7.63 Billion in Net Assets.
10. Vanguard High Yield Corporate Inv (VWEHX): -3.95%, $16.99 Billion in Net Assets.
If you have invested with a broker or financial adviser whose recommendation or solicitation to invest in a high-yield bond fund or other more volatile or risky product was not compatible with your preferred investment strategy and stated objectives/risk tolerance, and such volatility has resulted in outsized losses or otherwise proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.