Xtrackers USD High Yield Corporate Bond ETF (HYLB)
ARCA ARCA Primary 
HYLB: Not Among The Best Junk Bond ETFs
HYLB offers broad junk bond exposure with a 6%+ yield and a very low expense ratio. Despite slightly outperforming HYG, HYLB's share price and distributions have declined, especially after adjusting for inflation. For high-yield bond exposure, I prefer HYDB for better risk-adjusted returns or a fallen angels ETF for total return.
HYLB: Spreads Are Rising But The Market Is Still Too Optimistic
HYLB tracks the Solactive USD High Yield Corporates Total Market Index, reflecting U.S. high-yield corporate bonds. It is well-diversified with 1,200 holdings, mainly BB-rated, but exposed to economic shifts and higher default risks due to meaningful cyclical sector exposure. Current market conditions are discouraging when it comes to junk bond exposure.
The High-Yield Bond ETF HYLB Outshines Main Street Capital At 80% Premium
MAIN Street Capital's Q3 2024 results show a 10.8% gross assets yield and an 18.4% ROE, though the latter is debated due to variable gains. MAIN's future ROE may decline due to higher refinancing costs and lower floating-rate debt income, making its current premium to NAV questionable. Leveraged high-yield bond ETFs like HYLB and HYG offer comparable returns with lower risk and fees, challenging MAIN's attractiveness at an 80% premium.
HYLB: A Cheap Fee Doesn't Make This Asset Class More Attractive
Xtrackers USD High Yield Corporate Bond ETF is a broad market fund in high-yield bonds with a 6% yield. HYLB's portfolio is diversified across sectors, with a focus on consumer discretionary and communication services. Since its inception, HYLB has marginally outperformed its competitors HYG and JNK, and has a lower fee.
