VanEck International High Yield Bond ETF (IHY)

Overview

The company specializes in managing an investment fund that focuses on creating a portfolio that mirrors the performance of its benchmark index. This index comprises below investment grade bonds, commonly referred to as high-yield or junk bonds, issued by corporations across the globe, excluding the United States. These bonds are denominated in various currencies including Euros, U.S. dollars, Canadian dollars, or pound sterling, and are primarily issued in major domestic or Eurobond markets. The fund’s investment strategy emphasizes geographic diversification and currency exposure by investing in instruments from both developed markets and emerging market countries, aiming to provide investors with potential high returns associated with the increased risk of below investment grade bonds.

Products and Services

• Below Investment Grade Bonds

  The fund primarily invests in below investment grade bonds, also known as high-yield or junk bonds. These are bonds issued by corporations with a credit rating below BBB- (according to Standard & Poor's) or Baa3 (according to Moody's). Despite their higher risk of default compared to investment-grade bonds, they offer the potential for higher yields, making them an attractive investment option for those willing to accept a higher level of risk in exchange for the possibility of greater returns.

• Global Corporate Debt Instruments

  It includes investments in a diverse range of corporate bonds issued by companies located outside of the United States. This approach provides investors with exposure to various international markets, including emerging economies, thereby diversifying their portfolio and potentially reducing the risk associated with investing in a single country or region. The fund targets instruments denominated in a select group of currencies (Euros, U.S. dollars, Canadian dollars, or pound sterling) to mitigate currency risk while leveraging opportunities in major domestic and Eurobond markets.