NEW YORK ( TheStreet) -- Struggling to obtain income, investors have raced to buy high-yield bonds. High-yield funds have returned 7.9% this year, compared to a gain of 3.7% for the Barclays Capital Aggregate bond index, according to Morningstar. Attracted by the strong returns, investors have poured $16 billion into high-yield funds this year, a big gain for a category with $227 billion in total assets.Now some analysts worry that too much cash is rushing into high-yield bonds, which are rated below-investment grade. Fund companies apparently share the concern, and they have shut portfolios to new investors. Funds that closed recently include T. Rowe Price High-Yield (PRHYX) and Vanguard High-Yield Corporate (VWEHX).
Race to Safety: Best High-Yielders
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.