What This $4 Million Exit From a Fallen Angel ETF With 6% Yield Signals for Long-Term Investors

Hershey Financial Advisers fully exited its position in the VanEck Fallen Angel High Yield Bond ETF (NASDAQ:ANGL), selling 132,906 shares in the fourth quarter, according to a February 18, 2026, SEC filing.

What happened

An SEC filing published February 18, 2026, shows Hershey Financial Advisers sold its entire 132,906-share stake in the VanEck Fallen Angel High Yield Bond ETF during the fourth quarter. The shares were worth about $3.95 million based on the last-reported position value.

What else to know

• Top holdings after the filing:
  • NASDAQ: BND: $4.98 million (4.2% of AUM)
  • NYSEMKT: BOXX: $4.37 million (3.7% of AUM)
  • NYSEMKT: BIL: $4.33 million (3.7% of AUM)
  • NYSEMKT: VNLA: $4.14 million (3.5% of AUM)
  • NASDAQ: VGIT: $3.95 million (3.3% of AUM)
• As of February 18, 2026, shares of ANGL were priced at $29.71, roughly flat over the past year.

ETF overview

ETF snapshot

• ANGL’s investment strategy targets U.S. dollar-denominated corporate bonds that were originally rated investment grade but have since been downgraded to below investment grade ("fallen angels").
• Its portfolio is composed primarily of high-yield corporate bonds, diversified across sectors and issuers, following a rules-based index methodology.
• ANGL is structured as an exchange-traded fund with a transparent, passively managed approach; expense ratio and detailed fund costs are available in regulatory filings.

The VanEck Fallen Angel High Yield Bond ETF provides investors with targeted exposure to the "fallen angel" segment of the highyield bond market, seeking to capture potential price appreciation and attractive yields from bonds downgraded from investment grade. The fund's rules-based strategy emphasizes diversification and liquidity, appealing to investors seeking income and credit market opportunities through a single, liquid vehicle. With substantial assets under management and a competitive yield, the ETF is positioned as a core allocation for those seeking high-yield credit exposure with a disciplined approach.

What this transaction means for investors

Credit allocation decisions often reveal more about risk appetite than specific stock picks, and walking away from a fallen angel strategy suggests a recalibration on high-yield exposure at a moment when spreads remain tight and returns have normalized.

The VanEck Fallen Angel High Yield Bond ETF manages about $3 billion in assets and carries a 0.25% expense ratio. It targets bonds that were once investment grade but have been downgraded, a segment that has historically offered a quality tilt within junk. The fund sports a 30-day SEC yield of 6.06% and delivered an 8% one year return at NAV as of late January. Shares recently traded around $29.71 and are roughly flat over the past year.

Post-filing, the portfolio leans heavily toward broad bond exposure and short-duration vehicles like BND, BIL, and VGIT. That mix points to capital preservation over yield maximization.

For long-term investors, fallen angels can make sense as a middle ground between investment grade and deep junk. But they are still credit sensitive. If your objective is steady income with controlled volatility, trimming concentrated high-yield exposure in favor of diversified core bonds can be a disciplined move, not a market call.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard Total Bond Market ETF. The Motley Fool has a disclosure policy.