Fixed Income: U.S. - Corporate High Yield
With 19 ETFs and over $28.55B in combined AUM, the Fixed Income: U.S. - Corporate High Yield segment provides exposure to the U.S. space with a focus on High Yield securities.
Year-to-date, the best-performing ETF in the segment is the ProShares High Yield-Interest Rate Hedged ETF (HYHG), with a total return of 1.25%. Meanwhile, the most popular ETF is the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) with $14.90BB in assets under management.
Investors should take a look at the Xtrackers USD High Yield Corporate Bond ETF (HYLB). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. The Deutsche X-trackers USD High Yield Corporate Bond ETF tracks an index of USD-denominated high-yield corporate bonds with 1 to 15 years remaining to maturity. HYLB has an expense ratio of 0.20% and tracks the Solactive USD High Yield Corporates Total Market Index.
ETF.com Efficiency Insight
The average efficiency score in the Fixed Income: U.S. - Corporate High Yield segment is 76 out of 100, with the VanEck Vectors Fallen Angel High Yield Bond ETF(ANGL) obtaining the highest rating of 85 out of 100.
Costs dominate the discussion around efficiency. ETFs in the segment have an average expense ratio of 0.42% per year, with the Xtrackers USD High Yield Corporate Bond ETF (HYLB) having the lowest expense ratio, charging investors 0.20% yearly.
Investors should look for funds with tight tracking, such as the SPDR Bloomberg Barclays High Yield Bond ETF (JNK), with a 12-month median tracking difference of -0.27%.
ETF.com Tradability Insight
The average tradability score in the Fixed Income: U.S. - Corporate High Yield segment is 73 out of 100, with the iShares iBoxx $ High Yield Corporate Bond ETF(HYG) obtaining the highest rating of 94 out of 100.
The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) is the undisputed segment leader when it comes to liquidity. The fund trades 1.37B in daily average volume. Investors should also find ample liquidity in the SPDR Bloomberg Barclays High Yield Bond ETF (JNK), with $612.33M in daily dollar volume.
Use limit orders to trade funds such as the WisdomTree Fundamental U.S. High Yield Corporate Bond Fund(WFHY), due to their double-digit market spreads.
ETF.com Fit Insight
The Barclays U.S. Corporate High Yield Index has been selected as the index that most accurately represents the market in question. The benchmark has been selected by the ETF Analytics team at FactSet, according to a series of guidelines to ensure this index accurately captures its market.
Investors trying to match a broad market exposure should pay attention to HYXE. This fund obtains a high Fit score and investors should capture market-like returns.
Other funds diverge from the market, by nature of their investment mandates; for example, HYIH follows a Duration Hedged strategy and obtains a low Fit score compared with our neutral benchmark.