iShares iBoxx $ High Yield Corporate Bond ETF

The underlying index is a rules-based index consisting of U.S. dollar-denominated, high yield corporate bonds for sale in the U.S. The fund will invest at least 80% of its assets in the component securities of the underlying index, and the fund will invest at least 90% of its assets in fixed income securities of the types included in the underlying index that the advisor believes will help the fund track the underlying index.

With all the euphoria in the market, junk bonds help calm the noise. Why? Because firms that issue bonds are generally looking to raise capital for growth, expansion, debt restructuring or other cash-flow for their business.

Are Junk Bonds (HYG) Flashing Warning Sign To Investors?

Default risk is rising, and high-yield credit is underpriced; I recommend caution until after a credit event for better opportunities. The iShares iBoxx $ High Yield Corporate Bond ETF offers access to high-yield bonds but is sensitive to economic cycles. HYG's broad indexing and low fees are attractive, but its market-value weighting leans towards highly indebted companies, increasing risk.

HYG: Not The Time, But Worth It After A Credit Dislocation

Evaluating iShares iBoxx $ High Yield Corporate Bond ETF as an investment option at its current market price. I was previously bullish on HYG, which has shown solid gains, but now I have a more moderate stance. Coverage ratios and spreads across the high yield sector are on the decline, suggesting patience is probably the best outlook going forward.

HYG: Easy Money Has Been Made With High Yield Bonds (Rating Downgrade)

The U.S. high yield bond ETF category has a new asset leader. The iShares Broad USD High Yield Corporate Bond ETF (USHY) is now the largest high yield bond ETF in the market, with assets totaling $15.9 billion as of Aug.15.

High Yield Bond ETFs Have New Asset Leader

I wrote about long bonds TLT starting in June and how they could be the next big trade. They were, but for a week or so only at this point.

iShares iBoxx $ High Yield Corporate Bond ETFHYG

iShares iBoxx $ High Yield Corporate Bond ETF
HYG