BondBloxx Debuts With 7 Junk Bond ETFs

February 17, 2022

[Editor's Note: This story was updated to include comments from Tony Kelly Thursday morning.]

Six ETF executives from some of the largest issuers and financial firms in the world are debuting a suite of seven sector-specific high yield ETFs. 

All the new funds from BondBloxx Investment Management launched on the NYSE Arca on Thursday and are listed below: 

 

Ticker Fund Expense Ratio
XHYC BondBloxx USD High Yield Bond Consumer Cyclicals Sector ETF 0.35%
XHYD BondBloxx USD High Yield Bond Consumer Non-Cyclicals Sector ETF 0.35%
XHYI BondBloxx USD High Yield Bond Industrial Sector ETF  0.35%
XHYE BondBloxx USD High Yield Bond Energy Sector ETF  0.35%
XHYF BondBloxx USD High Yield Bond Financial & REIT Sector ETF  0.35%
XHYH BondBloxx USD High Yield Bond Healthcare Sector ETF 0.35%
XHYT BondBloxx USD High Yield Bond Telecom, Media & Technology Sector ETF 0.35%

 

Each of the funds derives its investable universe from the ICE BofA US Cash Pay High Yield Constrained Index, and their indexes are weighted based on their current amount outstanding. 

“Our conversations with investors have reinforced what we already knew: There is significant demand for more targeted fixed income products,” said BondBloxx co-founder Tony Kelly in a statement Thursday morning.

BondBloxx counts several ETF industry veterans among its six co-founders, who combined have more than 60 years of experience at BlackRock, and several stints at other major ETF issuers. 

The co-founders include Kelly, formerly Goldman Sach’s global head of ETF product development; Leland Clemons, a former head of fixed income ETFs at BlackRock; Elya Schwartzman, a senior consultant at T. Rowe Price; Brian O’Donnell, a head of business strategy at Northern Trust; and Joanna Gallegos, J.P. Morgan’s head of global ETF strategy. 

In an interview with Institutional Investor last October, BondBloxx leaders also said they aim to target their funds to institutional investors seeking fixed income exposure without potential liquidity issues. 

 

Contact Dan Mika at [email protected], and follow him on Twitter 

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