Forgetting the frustration of the 2021 fixed income market, 2022 is expected to bring better days for investment-grade corporates, if defaults and downgrades stay low. The novel idea of WisdomTree U.S. Corporate Bond Fund or WFIG could do the trick, as it tracks the USA’s WisdomTree Corporate Bond Index.
It also looks for valuation opportunities that could enable investors to capitalize on some of today’s undervalued brands. Furthermore, with its quality tendencies, WisdomTree ETF is way ahead of the Liquid Investment Grade Index of Markit iBoxx USD, and that also with 40 plus basis points year-to-date.
The methodology of WFIG is relevant in a time of experts advise investors that they should focus upon coupon income in 2022, instead of banking on capital appreciation from corporate bonds.