HYG - USHY: High-Yield Bonds Are Expensive But The Market Loves Them
2024-02-20 11:24:22 ET
Summary
- The ETF USHY is a preferred investment solution compared to its competitors, as high-yield bonds have historically maintained their value.
- The current yields of the ETF present a low-risk premium, despite the default risk of junk bonds remaining essentially stable (expected to be 4.74% for December 2024).
- However, the ETF has always demonstrated a great ability to preserve capital.
I find the iShares Broad USD High Yield Corporate Bond ETF ( USHY ) to be a good investment solution compared to his competitors. In general, I prefer investing in high yield over investment-grade bonds, which have historically shown a strong ability to maintain the value of the investment. I think the downgrades in recent years represent an excellent opportunity to start building a portfolio position in high yield bonds....
USHY: High-Yield Bonds Are Expensive But The Market Loves Them