iShares Fallen Angels USD Bond ETF (FALN) Fund Overview
Educational signal · not a buy or sell recommendation · How to read this
Beta 0.70: the stock has moved about 30% less than the S&P 500.
For informational purposes only. Not financial advice. Machine-generated analysis by Stock Expert AI — model gemini-2.0-flash, generated Mar 18, 2026. Editorial oversight is systemic, not page-by-page. Editorially accountable: Sedat ANAK, Founder and Editor-in-Chief. Data sources: Financial Modeling Prep, Yahoo Finance, SEC EDGAR
Quick AnsweriShares Fallen Angels USD Bond ETF (FALN) trades at $25.79. The iShares Fallen Angels USD Bond ETF (FALN) provides exposure to U.S. dollar-denominated high yield corporate bonds that were previously rated investment grade. Sector: Financials.
Price as of · Last analyzed: Mar 18, 2026Analyst Coverage for FALN: FALN does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage.
iShares Fallen Angels USD Bond ETF (FALN) Financial Services Profile
iShares Fallen Angels USD Bond ETF (FALN) offers targeted exposure to USD-denominated high-yield corporate bonds that were formerly investment grade. This ETF provides a focused investment vehicle for accessing the 'fallen angels' segment of the high-yield bond market, appealing to investors seeking potentially higher returns with associated risks.
What Is the Investment Thesis for FALN?
The iShares Fallen Angels USD Bond ETF (FALN) presents a targeted investment in high-yield corporate bonds that were previously investment grade. A key value driver is the potential for capital appreciation as these 'fallen angels' may recover following initial market overreactions to credit rating downgrades. With a beta of 0.70, FALN exhibits less volatility than the broader market. A growth catalyst is the increasing number of companies potentially being downgraded due to macroeconomic pressures. However, investors may want to evaluate the potential for increased credit risk and interest rate sensitivity inherent in high-yield bonds. The fund's performance is closely tied to the creditworthiness of its underlying holdings and overall market sentiment towards high-yield debt.
Based on FMP financials and quantitative analysis
FALN Key Highlights
Market capitalization of $1.85 billion indicates substantial investor interest in the fallen angels bond market.
- Beta of 0.70 suggests lower volatility compared to the broader market, potentially offering a more stable investment within the high-yield space.
- The ETF focuses on USD-denominated bonds, mitigating currency risk for US-based investors.
- FALN provides exposure to a diversified portfolio of fallen angel bonds, reducing the risk associated with individual bond defaults.
- The ETF's expense ratio is a key consideration for investors, impacting overall returns.
Who Are FALN's Competitors?
FALN is benchmarked below against 5 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | MoonshotScore |
|---|---|---|---|---|
| BSCU Invesco BulletShares 2030 Corporate Bond ETF | $16.16 | +0.12% | $2.57B | — |
| HYDB iShares High Yield Systematic Bond ETF | $44.78 | +0.11% | $1.58B | — |
| IBDW iShares iBonds Dec 2031 Term Corporate ETF | $20.01 | +0.15% | $2.40B | — |
| IBTF iShares iBonds Dec 2025 Term Treasury ETF | $23.30 | 0.00% | $1.62B | — |
| IBTH iShares iBonds Dec 2027 Term Treasury ETF | $22.27 | -0.04% | $2.20B | — |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are FALN's Key Strengths?
Targeted exposure to fallen angel bonds.
- Diversified portfolio of high-yield corporate bonds.
- Liquid and transparent investment vehicle.
- Established brand name (iShares).
What Are FALN's Weaknesses?
Higher credit risk compared to investment-grade bonds.
- Sensitivity to interest rate movements.
- Potential for market overreaction to credit rating downgrades.
- Dependence on the availability of fallen angel bonds.
What Are the Key Risks for FALN?
Economic recession leading to widespread corporate defaults, negatively impacting the value of the ETF's holdings.
- Unexpected interest rate hikes by the Federal Reserve, causing bond prices to decline.
- Credit risk associated with high-yield bonds, which are more susceptible to default than investment-grade bonds.
- Market volatility and liquidity risk in the high-yield bond market.
What Are FALN's Competitive Advantages?
- Brand recognition: iShares is a well-established and trusted brand in the ETF industry.
- Scale: The ETF's size ($1.85B market cap) provides liquidity and trading efficiency.
- Index tracking: The ETF's objective to replicate the performance of its underlying index provides transparency and predictability.
- Diversification: The ETF's holdings are diversified across a range of issuers and sectors within the high-yield market.
What Does FALN Do?
The iShares Fallen Angels USD Bond ETF (FALN) is designed to track the investment results of an index composed of U.S. dollar-denominated, high yield corporate bonds. These bonds, often referred to as 'fallen angels,' were initially rated as investment grade but have since been downgraded to high yield status. The fund provides investors with a means to access this specific segment of the high-yield bond market. By focusing on bonds that have experienced a credit rating downgrade, FALN aims to capture potential value from securities that may be undervalued due to market overreaction to the downgrade event. The ETF's investment strategy involves holding a diversified portfolio of these fallen angel bonds, providing exposure to a range of issuers and sectors within the high-yield market. The fund operates under the umbrella of iShares, a well-established brand in the ETF industry, known for its diverse range of investment products. FALN's objective is to replicate the performance of its underlying index, offering investors a relatively liquid and transparent way to invest in fallen angel bonds. The ETF's holdings are subject to change as bonds are added to or removed from the index based on their credit ratings and other eligibility criteria. FALN is headquartered in San Francisco, US.
What Products and Services Does FALN Offer?
- Tracks the investment results of an index composed of U.S. dollar-denominated, high yield corporate bonds.
- Focuses on bonds that were previously rated investment grade.
- Provides investors with exposure to the 'fallen angels' segment of the high-yield bond market.
- Offers a diversified portfolio of fallen angel bonds across various issuers and sectors.
- Replicates the performance of its underlying index.
- Provides a liquid and transparent way to invest in fallen angel bonds.
- Adjusts holdings based on credit ratings and eligibility criteria.
How Does FALN Make Money?
- Generates revenue through management fees charged to investors.
- Aims to replicate the performance of its underlying index of fallen angel bonds.
- Manages a portfolio of USD-denominated high-yield corporate bonds.
- Reinvests proceeds from maturing bonds and coupon payments.
What Industry Does FALN Operate In?
The asset management industry, specifically in the bond ETF segment, is characterized by increasing demand for specialized investment strategies. The high-yield bond market, where FALN operates, is influenced by macroeconomic factors, credit spreads, and interest rate movements. The competitive landscape includes other bond ETFs with varying investment mandates, such as broad high-yield ETFs and those focused on specific credit ratings or maturities. FALN differentiates itself by targeting the fallen angels segment, which can offer unique opportunities but also carries specific risks. The growth of the bond ETF market is driven by investors seeking diversification, liquidity, and cost-effective access to fixed-income assets.
Who Are FALN's Key Customers?
- Institutional investors seeking exposure to the high-yield bond market.
- Retail investors looking for diversification in their fixed-income portfolios.
- Financial advisors seeking to provide clients with access to fallen angel bonds.
- Pension funds and endowments seeking income and capital appreciation.
Research confidence
Thin evidence — scoring coverage unknown. Treat this as a starting point, not a conclusion.
- ● Scoring coverage unknown
- ● Price is current
- ● No filing on record
- ● No analyst coverage
- ● This is an etf, not an operating company
MoonshotScore History
Recorded daily since 2026-08-23 · 41 snapshots
| 2026-08-23 | 44 |
| 2026-08-31 | 44 |
| 2026-09-08 | 44 |
| 2026-09-16 | 44 |
| 2026-09-24 | 44 |
| 2026-10-04 | 44 |
What changed?
The score has stayed at 44.
Over the same 30 days the stock moved -4.0%.
FALN Financials
Bull Case vs Bear Case
Bull Case
- Targeted exposure to fallen angel bonds.
- Diversified portfolio of high-yield corporate bonds.
- Liquid and transparent investment vehicle.
- Established brand name (iShares).
Bear Case
- Higher credit risk compared to investment-grade bonds.
- Sensitivity to interest rate movements.
- Potential for market overreaction to credit rating downgrades.
- Dependence on the availability of fallen angel bonds.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
FALN Latest News
No recent news available for FALN.
FALN Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations collected by Financial Modeling Prep for FALN.
Price Targets
Wall Street price target analysis for FALN.
FALN MoonshotScore
MoonshotScore is Stock Expert AI's proprietary 0-100 research rating, not a buy or sell recommendation. No MoonshotScore is published for FALN; grades run from A+ (80-100) to F (below 30).
iShares Fallen Angels USD Bond ETF Financials Stock: Key Questions Answered
What does iShares Fallen Angels USD Bond ETF do?
The iShares Fallen Angels USD Bond ETF (FALN) aims to replicate the investment results of an index composed of U.S. dollar-denominated, high yield corporate bonds that were previously rated investment grade.
What are the main risks for FALN?
The primary risks associated with FALN include credit risk, interest rate risk, and liquidity risk. Credit risk refers to the possibility that issuers of the underlying bonds may default on their debt obligations. Interest rate risk arises from the potential for bond prices to decline as interest rates rise.
How does iShares Fallen Angels USD Bond ETF generate revenue in the financial services sector?
iShares Fallen Angels USD Bond ETF generates revenue primarily through management fees. These fees are charged to investors as a percentage of the fund's assets under management (AUM).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
MoonshotScore is not published for this security.
Data provided for informational purposes only.
- The information provided is based on available data and may be subject to change.
- Investment in high-yield bonds involves risks, including credit risk and interest rate risk. Investors should carefully consider their own risk tolerance before investing in FALN.