iShares EUR High Yield Corp Bond

ETF description

This ETF focuses on corporate bonds issued by companies in Europe that are considered higher risk but offer potentially higher returns. These bonds are often referred to as ‘high yield’ because they provide greater interest payments to compensate for the increased risk of the issuer defaulting. The bonds held in this ETF are denominated in euros, making it particularly relevant for investors who operate in or have exposure to the euro currency.

The ETF includes bonds from a range of industries and issuers, helping to spread risk by diversifying across multiple companies. The maturity and interest rate profiles of the bonds aim to balance the goal of providing higher income with managing the associated risks. Investors should be aware that high‑yield bonds are more sensitive to economic and market conditions compared to investment‑grade corporate or government bonds.

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 Markit iBoxx EUR Liquid High Yield Index is a benchmark for the performance of sub‑investment grade Euro‑denominated corporate bonds. Bonds must have a minimum rating of CCC, a minimum maturity of 2 years, and a maximum maturity of 10.5 years. Each bond must have a minimum outstanding amount of EUR 250 million. ssuers are capped at 3% and countries are capped at 20%.