Summary
HYGH Chart
HYGH: 3 Reasons To Avoid This ETF
HYGH's high expense ratio is a major drawback, especially compared to cheaper high yield ETFs like SPHY and USHY. High yield bond spreads are currently tight relative to historical norms. Fed rate cuts are likely to benefit high yield ETFs which have moderate interest rate exposure.
Fed Cuts Rates by 0.25%, Signals Fewer Cuts: ETFs to Play
The Fed slashes rates by 25 basis points, as expected but provides a somewhat hawkish guidance.
HYGH: Best ETF In Its Category, Yet Unconvincing
iShares Interest Rate Hedged High Yield Bond ETF invests in high-yield bonds while using derivatives to hedge interest rate variations. HYGH underperformed the non-hedged underlying index when rates were staying in a range, then it outperformed when they surged. HYGH is the largest, most liquid and best performing “junk bond” ETF with an interest rate hedge.
iShares Interest Rate Hedged High Yield Bond ETF Investors
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| TJD Thomas John Drogan PR Inc.IPAL SECURITIES Inc. | 5,229 | $448,842.53 | $452,693.88 | $3,851.35 | 0.86% |
| JD Jim Dushek HARBOUR INVESTMENTS Inc. | 308 | $26,174.64 | $26,657.4 | $482.76 | 1.84% |
 Jeffery Yorg Focus Partners Advisor Solutions LLC | 11,901 | $1.01M | $1.03M | $18,280.84 | 1.81% |
 Andrew J. Swenson ARS Wealth Advisors Group LLC | 174,313 | $14.92M | $15.07M | $148,166.05 | 0.99% |
| LWL Leo Wealth LLC Leo Wealth LLC | 3,742 | $324,954.85 | $323,495.9 | -$1,458.95 | -0.45% |
iShares Interest Rate Hedged High Yield Bond ETF (HYGH) FAQ
What is the stock price today?
On which exchange is it traded?
What is its stock symbol?
Does it pay dividends? What is the current yield?
What is its market cap?
Has iShares Interest Rate Hedged High Yield Bond ETF ever had a stock split?
iShares Interest Rate Hedged High Yield Bond ETF Profile
| ARCA Exchange | US Country |
Overview
The fund is structured to provide investors with exposure to high yield corporate bonds while seeking to minimize the interest-rate risk that often comes with such investments. By focusing on U.S. dollar-denominated bonds, the fund aims to offer a more stable option for those looking to benefit from higher returns typically associated with high yield bonds. The strategy involves closely tracking the performance of an underlying index, which is specifically constructed to mitigate the effects of interest rate fluctuations on the portfolio. This is achieved through a careful selection of component securities that align with the fund’s objective, combined with strategic instruments designed to support this goal. A significant portion of the fund's assets, at least 80%, is invested directly in the securities and instruments that form part of the underlying index, ensuring that the fund's performance closely mirrors that of the index it follows.
Products and Services
The fund offers a range of investment services focusing on the high yield corporate bond sector, with a specialized approach to minimizing interest-rate risk:
- High Yield Corporate Bond Investment: The main service provided by the fund is the investment in U.S. dollar-denominated, high yield corporate bonds. These bonds offer higher interest rates compared to standard corporate bonds due to the increased risk of default. Through diversifying the investment across various bonds as per the underlying index, the fund seeks to maximize returns while managing the associated risks.
- Interest-Rate Risk Minimization: A standout feature of the fund is its dedicated strategy to reduce the impact of interest rate fluctuations on the investment. By aligning its portfolio with the underlying index, which is designed to be less sensitive to interest rate changes, the fund aims to protect investors' capital from the adverse effects of rising interest rates. This is particularly appealing for those concerned about the potential for interest rate hikes affecting their bond investments.
- Dollar-Denominated Investment Option: For investors looking to mitigate currency risk in their bond investments, the fund provides an attractive avenue by focusing solely on U.S. dollar-denominated bonds. This eliminates the need for investors to hedge against currency fluctuations, simplifying the investment process and potentially reducing associated costs.
