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.
HYGH: 9.1% Yielding Corporate Bond ETF, Interest Rate Hedged, Solid Performance
HYGH invests in high-yield corporate bonds and hedges its interest rate risk through swaps. HYGH has a strong 9.1% dividend yield, 3.1% higher than HYG, the largest unhedged high-yield bond ETF in the market. The fund's performance track record is good, outperforming most bonds and bond sub-asset classes since inception.
