HYG Fund Description

The iBoxx $ High Yield Corporate Bond ETF tracks a market-weighted index of U.S. high-yield corporate debt.

HYG ETF.com Insight

HYG is one of the most popular and liquid fixed-income ETFs on the market, with over $10B in AUM and over $100M worth of its shares changing hands on a daily basis. Its expense ratio isslightly lower average maturity than the benchmark higher than its closest competitor JNK. However, for those extra 10 bps, you get the largest portfolio in the segment by a wide margin. HYG also clawed back much of its fee through securities lending. HYG’s broad portfolio has a slightly lower average maturity than the benchmark, due to lower exposure to bonds with 10+ years to maturity, which also suppresses HYG’s relative sensitivity to changes in long-term rates. This helps drive down the fund’s duration and YTM. In all, HYG is a highly liquid fund with marketlike credit risk and slightly lower interest-rate risk. (Insight updated 06/30/2014)

1 Year

Performance [as of 06/30/14] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years

HYG (Mkt)
0.61% 2.41% 4.95% 11.08% 8.24% 11.54% --

HYG (NAV)

0.84% 2.37% 5.02% 10.86% 8.58% 12.21% --

iBoxx $ Liquid High Yield Index

0.84% 2.40% 5.04% 11.03% 8.74% 12.46% 7.4%
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

HYG Top 10 Countries

HYG Top 10 Sectors

HYG Top 10 Holdings

HYG Summary Data

BlackRock

A company that produces and manages ETFs.

04/04/07

The first date of a fund's operations, as documented by the issuer.

Open-Ended Fund

The organizational structure of the fund or ETN.

0.50%

The net total annual fee a fund holder pays to the issuer.

$12.41 B

The market value of total assets that a fund has accumulated and now manages on behalf of investors.

$364.58 M

Average dollar value of shares traded over 60 calendar days.

0.01%

The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 60 days, as a percent.

HYG Portfolio Data

3.9

Price sensitivity in percentage to a 100 basis point parallel shift (up or down) in interest rates.

6.1 Years

The weighted average of remaining time until maturity for all securities in the portfolio.

5.28%

The weighted average yield if all securities in the portfolio were held until maturity. Assumes that interest can be reinvested at YTM rate.

09/02/14

The date on which a security's price excludes an upcoming dividend.

937

The number of securities held in the fund as of ETF.com’s analysis date, based on issuer portfolios or the creation basket. If an ETF holds other ETFs, we count every constituent, looking through the ETF wrapper.

HYG Index Data

iBoxx $ Liquid
High Yield Index

This is the benchmark an ETF is desigend to track or replicate.

Market Value

A set of rules that the underlying index provider follows to weight its constituent securities.

Market Value

A set of rules that the underlying index provider follows to select its constituent securities.

Barclays US Corporate
High Yield Index

This is the index that we have chosen as the best-in-class gauge for each segment's broad market.

Related ETFs to HYG

JNK, PHB, ANGL

ETFs from within the same segment or closely related segments with similar investment objectives or market exposures.

HYG ETF.com Efficiency Insight

HYG’s lofty asset tally and reasonable fee combine with tight tracking to produce the segment’s best score here. Despite heavy optimization of its underlying index and illiquid underlying market, HYG manages to track its index closely with very little volatility. In fact, the fund has lagged its index by less than its stated expense ratio due to an active securities lending operation. (Insight updated 06/30/2014)

Total Return

Performance [as of 06/30/14] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years

HYG (Mkt)
0.61% 2.41% 4.95% 11.08% 8.24% 11.54% --

HYG (NAV)
0.84% 2.37% 5.02% 10.86% 8.58% 12.21% --

iBoxx $ Liquid High Yield Index
0.84% 2.40% 5.04% 11.03% 8.74% 12.46% 7.4%

Barclays US Corporate High Yield Index
0.84% 2.51% 5.46% 11.73% 9.48% 13.98% 9.0%
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

HYG Portfolio Management

0.50%

The net total annual fee a fund holder pays to the issuer.

-0.12%

Compares returns of the fund's NAV to its underlying index for a daily series of overlapping 12 month periods. The median is the middle value of the results.

0.01%

Largest deviation in a positive direction of a fund's returns vs. its underlying index over the past 12 months.

-0.22%

Largest deviation in a negative direction of a fund's returns vs. its underlying index over the past 12 months.

HYG Tax exposures

20.00% / 39.60%

The maximum long-term and short-term U.S. tax rates applicable to a realized capital gain.

--

The average capital gains paid out to shareholders in the past 36 months, measured as a percent of net asset value (NAV) at the time.

N/A

IRS treatment of the majority of the fund's distributions.

No

ETFs that are structured as commodities pools and classified as limited partnerships by the IRS will issue K-1 forms to holders.

HYG Fund Structure

Open-Ended Fund

The organizational structure of the fund or ETN.

No

An indicator of whether a fund uses over-the-counter derivatives such as swaps or forwards to achieve its objectives.

Yes

An indicator of whether or not a fund actively lends its portfolio holdings.

75% / 25%

The division of securities lending revenue between the fund and the issuer.

N/A

The institution responsible for providing the return of the stated index and whose credit is the sole backing of the ETN.

N/A

The risk of default by the ETN counterparty.

Low

The likelihood that an issuer will shut down a fund for business or regulatory reasons.

Daily

The frequency of an issuer's disclosure of all fund holdings.

N/A

The multiple of the underlying index which the fund aims to deliver. For funds that reset, the leverage factor holds true only for the reset period, often just 1 day.

N/A

The time period at which the fund “trues up” its leverage factor. For funds that reset, the reset period–often just 1 day–is the length of time over which the fund delivers its leverage factor.

HYG ETF.com Tradability Insight

HYG can be traded cheaply and easily by investors of all sizes at any time during the day. Over $100M worth of HYG changes hands daily at very tight spreads. Institutions should have little trouble trading large blocks either, as liquidity providers are extremely active in the market despite an illiquid underlying market. (Insight updated 06/30/2014)

Average Spread

Premium/Discount

Volume

HYG ETF.com/ Block LiquidityAs of 08/19/2014

5
4
3
2
1

This measurement shows how easy it is to trade 25,000 shares of HYG. HYG is rated a 5 out of 5.

HYG Tradability

3,884,705

The average number of shares traded during a 60 day period.

$364.58 M

Average dollar value of shares traded over 60 calendar days.

3,472,741

Median number of shares traded over the past 45 trading days.

$329.62 M

Median dollar value of shares traded over the past 45 trading days.

0.01%

The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 60 days, as a percent.

$0.01

The difference between the highest and lowest posted prices for an ETF, averaged over the past 60 days, in dollars.

--

The middle value in the ranked set of all premium/discount values over a 12-month period.

-- / --

The greatest amount that the market price exceeded (premium) and fell below (discount) its fair value/net asset value (NAV) over a 12-month period.

None

This flags whether there is currently a systemic issue that has restricted the ability to create or redeem shares of the fund. This may be imposed by the fund's issuer, or by external circumstances.

100.00%

The percent of time that the underlying securities of an ETF are open to trading while US exchanges are open.

100,000

The smallest block of ETF shares that an Authorized Participant can either create or redeem at net asset value (NAV) with the issuer in exchange for the underlying shares of the fund.

34.26

The median 45 day share volume divided by the creation unit size of the fund. The higher the number, the more likely that liquidity providers will trade the fund in size, or in odd lots.

0.00%

The standard fee to create or redeem 1 creation unit of an ETF as a percentage of the dollar value of 1 creation unit.

382,468

The total number of net outstanding options contracts for an ETF.

--

The total market value of the assets that an ETF holds less fund expenses.

5

An estimate of liquidity for the underlying baskets of securities, scaled 1 to 5.

HYG ETF.com Fit Insight

HYG’s portfolio of 900 holdings is much smaller than our benchmark’s 2,000 count, but it holds more than twice as many bonds as the next-broadest fund. HYG has the same average credit rating and very similar sector exposure as our benchmark. Industrial debt dominates the sector composition. HYG’s lower YTM is a result of the fund’s shorter average maturity. The fund’s smaller allocation to bonds with 10+ years reduces its sensitivity to changes in long-term interest rates. (Insight updated 06/30/2014)

HYG Sector/Industry Breakdown

HYG Segment Benchmark
81.69% 79.28%
11.15% 11.74%
7.00% 7.97%
0.00% 1.01%
0.04% 0.00%

HYG Top 5 Countries

81.06% 81.25%
4.20% 5.19%
4.23% 3.58%
1.30% 1.95%
1.87% 1.93%

HYG Top 5 Currencies

100.00% 100.00%
100.00% 100.00%

HYG Performance Statistics

0.97

The degree to which the fund and its segment benchmark move up and down in unison.

1.17

The sensitivity of the returns of the fund to the movement of the ETF.com segment benchmark. Beta of 1.0 means magnitude of fund returns equals that of IU benchmark returns.

-2.37%

The excess return of fund relative to ETF.com segment benchmark on a risk adjusted basis. Only reported if statistically significant.

1.18

The comparison of a fund's return to our benchmark's for days when the benchmark is up. Ideally down beta is less than up beta while beta of 1.0 means they're equal.

1.18

The comparison of a fund's return to our benchmark's for days when the benchmark is down. Ideally down beta is less than up beta while beta of 1.0 means they're equal.

0.05%

A measure of the variability between the fund's returns and the ETF.com segment benchmark returns on days when the fund underperforms the benchmark.

HYG Holdings Statistics

HYG Segment Benchmark
6.51 6.06

The weighted average of remaining time until maturity for all securities in the portfolio.

4.07 3.95

A measure of interest rate risk. Estimates change in value to the portfolio based on a 1% parallel shift in the yield curve.

0.20 0.21

A measure of interest rate risk. Estimates the portfolio's sensitivity to changes in 2 year interest rates holding other rates constant.

1.00 0.70

A measure of interest rate risk. Estimates the portfolio's sensitivity to changes in 10 year interest rates holding other rates constant.

5.68% 5.28%

The weighted average yield if all securities in the portfolio were held until maturity. Assumes that interest can be reinvested at YTM rate.

3.98 3.88

Price sensitivity in percentage to a 100 basis point change (widening or narrowing) of spread relative to Treasury spot curve.

Low Low

The Herfindahl Index number – a metric of portfolio concentration where higher numbers mean higher concentration of holdings.

2,141 937

The number of securities held in the fund as of ETF.com’s analysis date, based on issuer portfolios or the creation basket. If an ETF holds other ETFs, we count every constituent, looking through the ETF wrapper.

B B

Market–value–weighted average credit quality of the portfolio.

HYG Maturity Distribution

1.03% 1.76%

Percent of the portfolio's exposure to securities with 0 - 1 years until maturity.

8.02% 7.55%

Percent of the portfolio's exposure to securities with 1 - 3 years until maturity.

24.75% 21.46%

Percent of the portfolio's exposure to securities with 3 - 5 years until maturity.

33.20% 35.44%

Percent of the portfolio's exposure to securities with 5 - 7 years until maturity.

27.90% 32.99%

Percent of the portfolio's exposure to securities with 7 - 10 years until maturity

5.10% 0.81%

Percent of the portfolio's exposure to securities with 10+ years until maturity.

HYG Credit Breakdown

0.02% 1.01%

Percent of portfolio's exposure to AAA rated bonds (Investment Grade).

0.00% 0.00%

Percent of portfolio's exposure to AA rated bonds (Investment Grade).

0.00% 0.00%

Percent of portfolio's exposure to A rated bonds (Investment Grade).

1.43% 1.45%

Percent of portfolio's exposure to BBB rated bonds (Investment Grade).

38.04% 46.13%

Percent of portfolio's exposure to BB rated bonds (High Yield).

43.38% 38.49%

Percent of portfolio's exposure to B rated bonds (High Yield).

16.30% 12.38%

Percent of portfolio's exposure to CCC rated bonds (High Yield).

0.26% 0.20%

Percent of portfolio's exposure to CC rated bonds (High Yield).

0.15% 0.27%

Percent of portfolio's exposure to C rated bonds (High Yield).