Assets in the T. Rowe Price U.S. High Yield ETF (THYF) have grown to $845.6 million, according to ETF Database, as the fund leans into a high yield bond market that its managers describe as structurally stronger than it was before the 2008 financial crisis.
While investors have had a close eye on equities all year, fixed income has had strong overall performance. For example, the Bloomberg US Aggregate Bond Index (BBUSATR) has returned 2.6% over one year.
As 2024 comes to an end, investors may be looking to adjust their bond allocations. With many still sitting in cash and rates coming down, it may be time to adapt or make a shift.
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
Mark Perrault Intergy Private Wealth LLC | 31,814 | $1.64M | $1.65M | $2,117.08 | 0.13% |
| DT Desaree Tatum Heritage Wealth Management Inc. | 16,317 | $850,097.24 | $843,425.73 | -$6,671.51 | -0.78% |
Alexandra Stickelman Root Financial Partners, LLC | 100 | $5,245 | $5,169.99 | -$75.01 | -1.43% |
Christopher C. Powers Farther Finance Advisors, LLC | 50 | $2,622 | $2,585.5 | -$36.5 | -1.39% |
Joseph C. Gissy Tactive Advisors, LLC | 8,028 | $419,000.31 | $415,046.8 | -$3,953.51 | -0.94% |
| ARCA Exchange | US Country |
The fund is primarily focused on investing in high yield instruments within the United States, targeting at least 80% of its net assets in such financial instruments. These include borrowings explicitly undertaken for investment purposes. The investment strategy primarily emphasizes on instruments issued in the U.S. or those denominated in U.S. dollars, demonstrating a preference for the reliability and stability often associated with U.S. financial markets. Additionally, the fund allocates a portion of its portfolio to investments outside the U.S. financial sphere, diversifying its investment approach by incorporating up to 20% of its total assets in non-U.S. dollar-denominated foreign instruments. This strategic blend aims at optimizing returns while managing risk through geographic and currency diversification.
The fund offers a focused range of investment opportunities tailored for investors seeking exposure to high yield instruments, primarily within the U.S. market. The diversification of its portfolio is designed to capitalize on the growth potential of U.S. issued and dollar-denominated instruments, while also exploring the benefits of foreign instruments.
These are the fund's core investments, making up at least 80% of its assets. By focusing on U.S. high yield instruments, the fund aims to provide investors with the opportunity to earn higher returns compared to traditional fixed-income securities. This includes a broad spectrum of debt securities rated below investment grade, sourced for their potential to deliver substantial income.
Most of the fund’s assets are allocated to instruments that are either issued by entities within the U.S. or are denominated in U.S. dollars. This strategy is employed to mitigate currency risk and leverage the stability and liquidity of the U.S. financial markets. It caters to investors looking for high yield opportunities without the added complexity of foreign currency exposure.
Up to 20% of the fund’s total assets may be invested in foreign instruments not denominated in U.S. dollars. This segment of the portfolio offers diversification beyond the U.S. high yield market, tapping into potential opportunities in foreign markets that may yield higher returns. It introduces an element of currency risk, which the fund manages through careful selection of instruments and monitoring of global economic conditions.