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Upturn AI SWOT - About
iShares Fallen Angels USD Bond ETF (FALN)
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Upturn Advisory Summary
04/01/2025: FALN (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Above Average Performance
These Stocks/ETFs, based on Upturn Advisory, frequently surpass the market, reflecting reliable and trustworthy advice.
Analysis of Past Performance
Type ETF | Historic Profit 9.22% | Avg. Invested days 60 | Today’s Advisory WEAK BUY |
Upturn Star Rating | Upturn Advisory Performance  4.0 | ETF Returns Performance  3.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Volume (30-day avg) 957465 | Beta 0.86 | 52 Weeks Range 24.41 - 26.89 | Updated Date 04/2/2025 |
52 Weeks Range 24.41 - 26.89 | Updated Date 04/2/2025 |
Upturn AI SWOT
iShares Fallen Angels USD Bond ETF
ETF Overview
Overview
The iShares Fallen Angels USD Bond ETF (FALN) seeks to track the investment results of an index composed of USD-denominated corporate bonds that were previously rated investment grade but are now rated below investment grade. It provides exposure to a segment of the high-yield bond market with potentially higher returns and diversification benefits.
Reputation and Reliability
iShares (BlackRock) is one of the largest and most reputable ETF providers globally, known for its wide range of ETFs and strong track record.
Management Expertise
BlackRock has extensive expertise in fixed income investing and employs a team of experienced portfolio managers to manage its bond ETFs.
Investment Objective
Goal
To track the investment results of an index composed of USD-denominated corporate bonds that were previously rated investment grade but are now rated below investment grade.
Investment Approach and Strategy
Strategy: The ETF aims to replicate the ICE US Fallen Angel High Yield 10% Capped Index.
Composition The ETF holds USD-denominated corporate bonds that have been downgraded from investment grade to below investment grade (high yield or 'junk' bonds).
Market Position
Market Share: FALN holds a significant market share within the fallen angel bond ETF category.
Total Net Assets (AUM): 1840000000
Competitors
Key Competitors
- VanEck Fallen Angel High Yield Bond ETF (ANGL)
Competitive Landscape
The competitive landscape is dominated by FALN and ANGL. FALN benefits from BlackRock's brand recognition and larger AUM, leading to higher liquidity. ANGL offers similar exposure but with slightly different index methodologies. The fallen angel bond ETF market focuses on identifying and capturing value from bonds that have recently been downgraded.
Financial Performance
Historical Performance: Historical performance varies depending on the economic cycle and credit market conditions. Fallen angel bonds may outperform broader high-yield indexes during certain periods.
Benchmark Comparison: The ETF's performance is typically compared to the ICE US Fallen Angel High Yield 10% Capped Index.
Expense Ratio: 0.25
Liquidity
Average Trading Volume
FALN's average trading volume is relatively high, indicating good liquidity.
Bid-Ask Spread
The bid-ask spread is typically tight, reflecting the ETF's liquidity and trading efficiency.
Market Dynamics
Market Environment Factors
Economic growth, interest rate movements, and credit market conditions significantly impact FALN. Downgrade activity also influences its composition.
Growth Trajectory
FALN's growth depends on investor demand for high-yield bonds and the volume of fallen angel bonds entering the market.
Moat and Competitive Advantages
Competitive Edge
FALN's primary advantage is its first-mover advantage in the fallen angel bond ETF space, and its association with BlackRock's strong brand reputation. It offers targeted exposure to a specific segment of the high-yield market that may offer potential for outperformance. Its larger AUM can contribute to tighter bid-ask spreads which reduces trading costs, and increases liquidity. These factors make it a strong candidate for investors looking for a potentially less efficient segment of the fixed income markets.
Risk Analysis
Volatility
FALN exhibits higher volatility than investment-grade bond ETFs due to the higher risk associated with high-yield bonds.
Market Risk
Market risk includes interest rate risk, credit risk, and liquidity risk. Credit risk is a major concern as the underlying bonds are rated below investment grade.
Investor Profile
Ideal Investor Profile
The ideal investor is one who seeks potentially higher returns than investment-grade bonds and is willing to accept higher credit risk. It may be for investors seeking diversification within their fixed income allocation.
Market Risk
FALN is suitable for long-term investors with a higher risk tolerance and those seeking to diversify their fixed-income portfolio with high-yield exposure. Not suitable for conservative investors.
Summary
The iShares Fallen Angels USD Bond ETF (FALN) provides targeted exposure to USD-denominated corporate bonds that have been downgraded from investment grade to below investment grade. FALN offers potential for higher returns, but comes with higher credit and volatility risks compared to investment-grade bonds. BlackRock's experience and established brand reputation support the ETF's credibility and liquidity. It is suitable for investors with a higher risk tolerance and a desire for high-yield bond exposure within their portfolios.
Similar Companies
- ANGL
- HYG
- JNK
- VWEAX
Sources and Disclaimers
Data Sources:
- iShares website
- ETF.com
- Morningstar
Disclaimers:
This analysis is for informational purposes only and does not constitute investment advice. Investment decisions should be based on individual circumstances and consultation with a financial advisor.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About iShares Fallen Angels USD Bond ETF
Exchange NASDAQ | Headquaters - | ||
IPO Launch date - | CEO - | ||
Sector - | Industry - | Full time employees - | Website |
Full time employees - | Website | ||
The fund will invest at least 80% of its assets in the component securities of the underlying index, and the fund will invest at least 90% of its assets in fixed income securities of the types included in the underlying index. The index is designed to reflect the performance of U.S. dollar denominated, high yield corporate bonds that were previously rated investment grade.
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