Fixed Income: U.S. - Corporate, Broad-based High Yield Short-Term
With 8 ETFs and over $8.19B in combined AUM, the Fixed Income: U.S. - Corporate, Broad-based High Yield Short-Term 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 Invesco BulletShares 2020 High Yield Corporate Bond ETF (BSJK), with a total return of -3.29%. Meanwhile, the most popular ETF is the iShares 0-5 Year High Yield Corporate Bond ETF (SHYG) with $3.48BB in assets under management.
Investors should take a look at the iShares 0-5 Year High Yield Corporate Bond ETF (SHYG). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. SHYG tracks a market-value-weighted index of high-yield US-dollar-denominated corporate bonds with 0-5 years remaining in maturity. SHYG has an expense ratio of 0.30% and tracks the Markit iBoxx USD Liquid High Yield 0-5 Index.
ETF.com Efficiency Insight
The average efficiency score in the Fixed Income: U.S. - Corporate, Broad-based High Yield Short-Term segment is 79 out of 100, with the SPDR Bloomberg Barclays Short Term High Yield Bond ETF(SJNK) obtaining the highest rating of 86 out of 100.
Costs dominate the discussion around efficiency. ETFs in the segment have an average expense ratio of 0.40% per year, with the Xtrackers Short Duration High Yield Bond ETF (SHYL) having the lowest expense ratio, charging investors 0.20% yearly.
Investors should look for funds with tight tracking, such as the PIMCO 0-5 Year High Yield Corporate Bond Index ETF (HYS), with a 12-month median tracking difference of 0.04%.
ETF.com Tradability Insight
The average tradability score in the Fixed Income: U.S. - Corporate, Broad-based High Yield Short-Term segment is 77 out of 100, with the iShares 0-5 Year High Yield Corporate Bond ETF(SHYG) obtaining the highest rating of 100 out of 100.
The SPDR Bloomberg Barclays Short Term High Yield Bond ETF (SJNK) is the undisputed segment leader when it comes to liquidity. The fund trades 154.21M in daily average volume. Investors should also find ample liquidity in the iShares 0-5 Year High Yield Corporate Bond ETF (SHYG), with $108.22M in daily dollar volume.
Use limit orders to trade funds such as the WisdomTree Negative Duration High Yield Bond Fund(HYND), due to their double-digit market spreads.
ETF.com Fit Insight
The Bloomberg Barclays US High Yield 350mn Cash Pay 2% Capped (0-5 Y) 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.