iShares USD High Yield Corporate Bond ESG

ETF description

This ETF focuses on bonds issued by companies that have lower credit ratings, which are often referred to as ‘“high yield”’ or ‘“junk”’ bonds. These bonds typically offer higher interest payments to investors because they come with a greater risk of default compared to higher‑rated bonds. The goal of this ETF is to provide investors with a steady stream of income from these bonds, while also selecting bonds from companies that meet certain environmental, social, and governance (ESG) standards. By incorporating ESG criteria, the fund aims to avoid companies that don’t align with specific sustainability principles.

This ETF might appeal to investors looking for higher income potential, but who also want to invest in companies that have better ESG practices. However, because high‑yield bonds come with higher risk, this ETF may suit investors with a greater tolerance for potential price fluctuations.

Issuer details

iShares ETFs are issued and managed by BlackRock, the world’s largest asset management company.

With 800+ products globally and over $2trn in assets (as at June 2024), iShares ETFs are a flexible, low‑cost way for investors to gain exposure to various market segments, including fixed income, emerging markets and broad‑based indexes.

Index details

The Bloomberg MSCI US Corporate High Yield Sustainable BB+ SRI Bond Index provides exposure to $ denominated bonds issued by companies with a lower credit rating.