iShares USD High Yield Corp Bond

ETF description

This ETF provides exposure to a broad range of corporate bonds classified as high yield, also known as ‘“non‑investment grade.”’ These bonds are issued by companies that may have higher levels of debt or lower credit ratings compared to investment‑grade issuers. To compensate for this added credit risk, these bonds typically offer higher yields, making them potentially attractive to investors seeking enhanced income opportunities.

The bonds held in this fund are diversified across different industries and issuers, helping to spread risk. Most of the bonds are denominated in major currencies, reducing currency exposure for investors in those regions. However, because high‑yield bonds tend to have greater sensitivity to economic changes and market conditions, this ETF may experience more significant price fluctuations than funds focused on investment‑grade 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 USD Liquid High Yield Capped Index is designed to reflect the performance of USD denominated high yield corporate debt. The index rules aim to offer a broad coverage of the USD high yield liquid bond universe and have been designed to provide a suitable basis for OTC, exchange‑traded derivatives and Exchange Traded Funds (ETFs). The indices are an integral part of the global Markit iBoxx index families, which provide the marketplace with accurate and objective indices by which to assess the performance of bond markets and investments. The index is market‑value weighted with an issuer cap of 3% and 10% cap for 144A bonds without registration rights or with a registration period greater than one year.