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For anyone just googling "HYG" and seeing a flat chart (with a dip at the end), use a tool like Portfolio Visualizer to see the effect of bond ETF dividends. Put "HYG" under ticker, set it to 100% and make sure to set Display Income to "Yes". You'll get compound annual growth rate (4.52%) and the inflation adjusted value (2.76%) as well.

https://www.portfoliovisualizer.com/backtest-portfolio



What a world we live in now that 4.52% is the yield for junk bonds.


That's not the yield, but the long-term growth rate, accounting for defaults. But yes, for a while 5% was a typical junk bond yield. As of last month, though, it shot up to ~8 percent, or 10 for B-grade.

https://news.ycombinator.com/item?id=22817962




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