Fixed Income: U.S. - Corporate, Broad-based High Yield
With 37 ETFs and over $43.33B in combined AUM, the Fixed Income: U.S. - Corporate, Broad-based 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 -5.16%. Meanwhile, the most popular ETF is the iShares iBoxx USD High Yield Corporate Bond ETF (HYG) with $14.26BB 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. HYLB tracks an index of USD-denominated high-yield corporate bonds with 1 to 15 years remaining to maturity. HYLB has an expense ratio of 0.15% 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, Broad-based High Yield segment is 81 out of 100, with the JPMorgan High Yield Research Enhanced ETF(JPHY) obtaining the highest rating of 89 out of 100.
Costs dominate the discussion around efficiency. ETFs in the segment have an average expense ratio of 0.39% per year, with the SPDR Portfolio High Yield Bond ETF (SPHY) having the lowest expense ratio, charging investors 0.10% yearly.
Investors should look for funds with tight tracking, such as the IQ S&P High Yield Low Volatility Bond ETF (HYLV), with a 12-month median tracking difference of -0.07%.
ETF.com Tradability Insight
The average tradability score in the Fixed Income: U.S. - Corporate, Broad-based High Yield segment is 79 out of 100, with the SPDR Bloomberg High Yield Bond ETF(JNK) obtaining the highest rating of 100 out of 100.
The iShares iBoxx USD High Yield Corporate Bond ETF (HYG) is the undisputed segment leader when it comes to liquidity. The fund trades 3.22B in daily average volume. Investors should also find ample liquidity in the SPDR Bloomberg High Yield Bond ETF (JNK), with $1.05B in daily dollar volume.
Use limit orders to trade funds such as the Simplify High Yield PLUS Credit Hedge ETF(CDX), due to their double-digit market spreads.
ETF.com Fit Insight
The Bloomberg US 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 . 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, follows a strategy and obtains a low Fit score compared with our neutral benchmark.