HYLB - HYLB: Good Cheap High-Yield Bond ETF But Better Choices Out There

2024-04-03 03:49:30 ET

Summary

• HYLB is one of the cheapest high-yield bond ETFs in the market, with a 0.05% expense ratio.
• It offers investors an average 5.9% yield, and average total returns.
• HYLB seems strictly inferior to SPHY, with several disadvantages, but no clear edge.

I'm quite bullish on the SPDR Portfolio High Yield Bond ETF (SPHY), due to the fund's above-average 7.5% dividend yield, below-average 0.05% expense ratio, and strong performance track-record. While looking at some data for high-yield corporate bond ETFs, I noticed that the Xtrackers USD High Yield Corporate Bond ETF (HYLB) has an identical 0.05% expense ratio, with a similar strategy and portfolio. Due to this, I thought to have a closer look at HYLB, and to write an article sharing my findings....

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