HYS - HYS Vs. HYG: Little To Differentiate These HY Corporate ETFs

2024-06-04 09:00:00 ET

Summary

• The iShares iBoxx $ High Yield Corporate Bond ETF is the largest "junk bond" ETF.
• The PIMCO 0-5 Year High Yield Corporate Bond Index ETF has better return data but seems to have a higher risk portfolio.
• Both ETFs are reviewed in depth and then compared. My conclusion: it is a toss-up as to which is the better ETF to hold short-term and/or long-term.

Introduction

My original title assumed these ETFs had a wide difference in their portfolio's duration/maturity statistics, which would have been important if you also think we are at the top of an interest-rate cycle. While a sudden burst of inflation or jump in economic activity would upset that idea, rates seem to have plateaued, though the FOMC isn’t in a hurry to start down from where we are in my view....

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