THYF
T. Rowe Price U.S. High Yield ETF
stock NYSE ETF

>Yes. But what you aren’t getting with any sort of bond—junk or otherwise—are the price fluctuations that you get with stock. That’s where the “safety” comes in. I have SPLG, an S&P 500 ETF. Its price is around $70. The dividend it pays is around 1.24%. I also hold the junk ETF THYF. Its price is around $51 and its yield is 7.8%. A couple months ago, SPLG was $58 (it’s now $70). THYF was $49 (it’s now $51). So while THYF has a way bigger yield, if you bought both a couple months ago and sold today, you’re way ahead with SPLG because that price jump is bigger than THYF’s yield. On the other hand, if you bought both in January and sold in April, SPLG’s price fell fairly dramatically during that period. You’d have done way better with THYF. That’s why stocks are riskier than bonds—price fluctuations. You hope they go up, but they don’t always do that.
Nice concrete examples; helped A lot to see how things may play out. So stocks are riskier but over the long haul they outperform bonds. But you just showed me a etf bond fund (THYF) that has a 7.8 percent yield. Isn’t that the best of both worlds? Why even need stocks when you get bond safety and 7.8?
>Also remember that yield is split up over its pay periods. If I have $100 THYF and it pays 7.8%, that’s $7.80 but divided over 12 payments. 65 cents a month. Percentage can also change over the year. Most equity ETFs pay quarterly.
>You asked about redemptions. Honestly idk. I’m just not familiar with mutual funds. ETFs don’t work that way. You can buy and sell any time without a redemption penalty. But think about a CD. You can redeem it before it’s due, but you might just get your money back with no interest.
I see I see. Now I see one big difference between mutual funds and etfs.
>I wouldn’t worry too much about stock dividend yield. With stock, look at price. It’s history, where you think it’s going. Or buy ETFs and let people more knowledgeable than us do it lol. That’s what I do. Over the long run, stocks do way, way better than bonds. Bonds are a place to park your money and make a little interest. Not as safe as a CD or high yield savings account, but not too risky. My bond portion is a mix. Everything from short term treasuries to investment grade corporate to junk. 98% of what I have is in ETFs—that includes both stocks and bonds.
Understood!
>You might give whoever you invest through a call with some of your questions.
I haven’t begun really investing much yet but becoming more confident learning on this board!

>Yes. But what you aren’t getting with any sort of bond—junk or otherwise—are the price fluctuations that you get with stock. That’s where the “safety” comes in. I have SPLG, an S&P 500 ETF. Its price is around $70. The dividend it pays is around 1.24%. I also hold the junk ETF THYF. Its price is around $51 and its yield is 7.8%. A couple months ago, SPLG was $58 (it’s now $70). THYF was $49 (it’s now $51). So while THYF has a way bigger yield, if you bought both a couple months ago and sold today, you’re way ahead with SPLG because that price jump is bigger than THYF’s yield. On the other hand, if you bought both in January and sold in April, SPLG’s price fell fairly dramatically during that period. You’d have done way better with THYF. That’s why stocks are riskier than bonds—price fluctuations. You hope they go up, but they don’t always do that.
Nice concrete examples; helped A lot to see how things may play out. So stocks are riskier but over the long haul they outperform bonds. But you just showed me a etf bond fund (THYF) that has a 7.8 percent yield. Isn’t that the best of both worlds? Why even need stocks when you get bond safety and 7.8?
>Also remember that yield is split up over its pay periods. If I have $100 THYF and it pays 7.8%, that’s $7.80 but divided over 12 payments. 65 cents a month. Percentage can also change over the year. Most equity ETFs pay quarterly.
>You asked about redemptions. Honestly idk. I’m just not familiar with mutual funds. ETFs don’t work that way. You can buy and sell any time without a redemption penalty. But think about a CD. You can redeem it before it’s due, but you might just get your money back with no interest.
I see I see. Now I see one big difference between mutual funds and etfs.
>I wouldn’t worry too much about stock dividend yield. With stock, look at price. It’s history, where you think it’s going. Or buy ETFs and let people more knowledgeable than us do it lol. That’s what I do. Over the long run, stocks do way, way better than bonds. Bonds are a place to park your money and make a little interest. Not as safe as a CD or high yield savings account, but not too risky. My bond portion is a mix. Everything from short term treasuries to investment grade corporate to junk. 98% of what I have is in ETFs—that includes both stocks and bonds.
Understood!
>You might give whoever you invest through a call with some of your questions.
I haven’t begun really investing much yet but becoming more confident learning on this board!