2024-07-08 08:00:00 ET
Summary
- iShares iBoxx $ High Yield Corporate Bond ETF is the largest “junk bond” ETF in the market and is often used as a benchmark.
- The yield is attractive, but both price and distributions have suffered a decay for years.
- If HYG doesn’t look compelling as a long-term investment, it may be useful in tactical allocation strategies.
- For investors absolutely willing to hold high-yield corporate bonds for a long period, there are better choices.
Strategy
iShares iBoxx $ High Yield Corporate Bond ETF ( HYG ) started investing operations on 5/4/2007 and tracks the Markit iBoxx® USD Liquid High Yield Index. It has a 12-month trailing yield of 5.96%, a 30-day SEC yield of 7.44% and an expense ratio of 0.49%. Distributions are paid monthly. Based on assets under management, HYG is the largest ETF in high yield corporate bonds (often referred to as “junk bonds”), ahead of iShares Broad USD High Yield Corporate Bond ETF ( USHY ) and SPDR Bloomberg High Yield Bond ETF ( JNK )....
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For further details see:
HYG: A Benchmark In Junk Bonds, But Not The Best ETF In This Field