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EIC Vs. HYG: One Fund Is A Better High Yield Investment


Published on 2024-12-11 11:01:09 - Seeking Alpha
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  • Eagle Point Income Company outperforms iShares iBoxx $ High Yield Corporate Bond ETF with a 30% return vs. 9.5% over 3 years. Learn why EIC stock beats HYG.

The article from Seeking Alpha compares two high-yield bond ETFs, the Eaton Vance Enhanced Equity Income Fund II (EOS) and the iShares iBoxx $ High Yield Corporate Bond ETF (HYG), to determine which might be a better investment for those seeking high yield. EOS, which focuses on a diversified portfolio of common stocks and writes call options to generate income, has shown a higher yield and better performance over the last three years compared to HYG. However, it comes with higher fees and uses leverage, which increases risk. HYG, on the other hand, tracks an index of high yield bonds, offering a more straightforward bond investment with lower fees but also lower yield. The article suggests that while EOS might offer better returns, its risk profile due to leverage and option strategies might not suit all investors, whereas HYG provides a more conservative approach to high yield investing with less risk but also less potential reward. The choice between the two would depend on an investor's risk tolerance, investment horizon, and income needs.

Read the Full Seeking Alpha Article at:
[ https://seekingalpha.com/article/4743584-eic-vs-hyg-one-fund-is-a-better-high-yield-investment ]