High-yield bonds are winning this year in the low-interest-rate environment. Managers of high-yield bond mutual funds guided their funds to an average growth of 3.3% through July, while exchange-traded funds grew only 2.5%, according to data from Morningstar. "The further out on the credit spectrum investors went, the better their returns have been," said Todd Rosenbluth, a fund analyst with S&P Capital IQ.

Related Summaries