iShares High Yield Active ETF (BRHY)

BRHY: BlackRock Enters The Active High Yield ETF Arena

BlackRock's active offering, BRHY, has closely mirrored its passive peer HYG since its mid-2024 inception, effectively acting as a "closet indexer" by tracking the broad market rather than generating outperformance. Contrary to what investors should expect from an active mandate, BRHY has actually exhibited slightly worse peak-to-trough drawdowns than the passive index. Broad U.S. high-yield credit spreads sit at a historically tight 271 bps, leaving investors with an asymmetric risk profile.