Strength in BondBloxx USD High Yld Bd Sect Rot ETF's People Pillar is partially offset by an Average Process Pillar rating, leading to a Morningstar Medalist Rating of Neutral. The portfolio maintains a cost advantage over competitors, priced within the lowest fee quintile among peers.  

 The strategy receives an Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant overweight position in corporate bonds and B rated bonds compared with category peers. The strategy’s management team earns an Above Average People Pillar rating. The People Pillar rating is indirectly assigned by an analyst rather than algorithmically derived. Please see the notes following pillar section for more details. The strategy's parent firm has some investor-friendly attributes, like overall attractive fees and continuity among portfolio managers. As a result, the firm gets an Average Parent Pillar rating.

Analyst Rating

BondBloxx USD High Yield Bond Industrial Sector ETF

BondBloxx USD High Yield Bond Telecom Media & Technology Sector ETF

BondBloxx USD High Yield Bond Consumer Cyclicals Sector ETF

BondBloxx USD High Yield Bond Financial & REIT Sector ETF

BondBloxx USD High Yield Bond Healthcare Sector ETF

BondBloxx USD High Yield Bond Energy Sector ETF

BondBloxx USD High Yield Bond Consumer Non-Cyclicals Sector ETF

Morningstar's style-agnostic investment process evaluation looks for strategies that should be able to outperform their Morningstar Category index on a risk-adjusted basis over time. BondBloxx USD High Yld Bd Sect Rot ETF earns an Average Process Pillar rating.    The leading factor in the rating is the firm's five-year retention rate of 100% over the period. Management team experience, which averages 26 years at this fund, also supports the rating. Lastly, the process is limited by being an actively managed strategy. Historical data, such as Morningstar's Active/Passive Barometer, finds that actively managed funds have generally underperformed their passive counterparts, especially over longer time horizons.

 Compared with other funds in the High Yield Bond Morningstar Category, this fund consistently holds a significantly smaller cash position over the past few years. But in terms of long-term interest-rate sensitivity, it does not have a portfolio bias and hews closely to peers. 

  The portfolio's average surveyed credit quality is on par with peers, with both the fund and the average being rated B.

Average

Process

BondBloxx USD High Yld Bd Sect Rot ETF earns an Above Average People Pillar rating. The team is backed by John P. McCarthy, the longest-tenured manager on the strategy, who brings over 25 years of listed portfolio management experience. The average Morningstar Rating of the strategies they currently manage is 2.8 stars, indicating that their risk-adjusted returns have been in line with the category average. John P. McCarthy is supported by an experienced team, being able to draw on four additional listed managers, who average over 25 years of listed portfolio management experience.  None of the portfolio managers here invest in this fund. This hurts the rating because manager investment would align their interests with the strategy's investors.

 Note: The People Pillar rating is indirectly assigned by an analyst. The longest-tenured manager of the fund also manages a different product rated by an analyst. Their analyst-assigned People Pillar rating is combined here with the People scores (algorithmic or analyst-assigned) for the fund’s other managers on a tenure-weighted basis.

Above Average

People

Since its inception only two years ago, BondBloxx Investment Management LLC has demonstrated that it can be trusted as much as the next asset manager. As a result, it has an Average Parent Pillar rating. BondBloxx Investment Management LLC currently oversees 25 vehicles, with a total of $2.66 billion under management and a bench of 13 fund managers. BondBloxx Investment Management LLC's management team is composed of mostly veteran managers, averaging 20 years of industry experience. A firm's ability to retain its talent is a crucial indicator of its culture. This has been a strength of BondBloxx Investment Management LLC, which has had lower-than-average manager turnover. 

 BondBloxx Investment Management LLC deserves plaudits for its commitment to low fees for its open-end and exchange-traded funds, which showcases its willingness to prioritize investors. The firm's average net expense ratio across all funds is in the cheapest quintile of firms.  

 To keep an Average rating, BondBloxx Investment Management LLC will be expected to maintain a consistent track record of positive investor experience.

Parent

Bondbloxx USD High Yield Sector Rotation

HYSA is an actively managed fund-of-funds that invests in its own suite of fixed-income products specializing in high-yield USD-denominated corporate bonds. It offers diversified sector exposure and no bond maturity limitations.

The fate of potential interest rate changes from the Federal Reserve is still up in the air. But, high-yield bond sector ETFs remain a robust option for investors.

HYSA Sector Rotation Strategy Signals Resilience

iShares iBoxx High Yield Corporate Bond ETF

Xtrackers USD High Yield Corporate Bond ETF

Schwab High Yield Bond ETF

SPDR Portfolio High Yield Bond ETF

iShares 20+ Year Treasury Bond ETF

iShares Broad USD High Yield Corporate Bond ETF

BondBloxx BB-Rated USD High Yield Corporate Bond ETF

After a year when advisors were relatively cautious about taking on credit risk, sentiment seems to be shifting. In 2023, the most popular fixed income ETF was the iShares 20+ Year Treasury ETF (TLT).

Chart of the Week: High Yield Gaining Traction With Advisors

BondBloxx CCC-Rated USD High Yield Corporate Bond ETF

The U.S. economy defied expectations in 2023, avoiding a recession thanks to lowered inflation and a strong labor market. And after an abysmal year for fixed income in 2022, fixed income markets rebounded last year.

Why Now's a Good Time to Invest in Fixed Income

On this episode of the “ETF of the Week” podcast, Tom Lydon discussed the BondBloxx USD High Yield Bond Sector Rotation ETF (HYSA) with Chuck Jaffe of “Money Life.” The pair discussed several different topics regarding the fund to give investors insight into it.

Video: ETF of the Week: BondBloxx USD High Yield Bond Sector Rotation ETF (HYSA)

VettaFi's vice chairman Tom Lydon discussed the BondBloxx USD High Yield Bond Sector Rotation ETF (HYSA) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” For more news, information, and strategy, visit the Institutional Income Strategies Channel.

ETF of the Week: BondBloxx USD High Yield Bond Sector Rotation ETF (HYSA)

Many Wall Street observers and insiders had predicted that a recession would hit the U.S. this year. But it's looking as though the odds of a downturn have been overstated.

The Current Economy is a Gift to High Yield

Parabla Innovation Etf

AdvisorShares Newfleet Multi-Sector Income ETF

Strategy Shares Halt Climate Change ETF

Principal International Adaptive Multi-Factor ETF

Highland iBoxx Senior Loan ETF

SPDR S&P 500 ETF Trust

FT Cboe Vest US Equity Moderate Buffer ETF - September

Subversive Cannabis ETF

Western Asset Bond ETF

FT Cboe Vest US Equity Buffer & Premium Income ETF - September

Invesco BulletShares 2033 Corporate Bond ETF

Invesco BulletShares 2031 High Yield Corporate Bond ETF

Invesco BulletShares 2033 Municipal Bond ETF

Marketdesk Focused US Dividend ETF

Amplify Cash Flow High Income Etf

The week ending Sept. 22 marks a strong post-summer resurgence for the industry, with 25 new ETF launches in all.

This Week in ETFs: Launches Ramp Up

BondBloxx Investment Management has launched the BondBloxx USD High Yield Bond Sector Rotation ETF (NYSE Arca: HYSA). The active ETF offers access to a high yield bond sector rotation strategy.

BondBloxx Launches High Yield Bond Sector Rotation ETF

LARKSPUR, Calif., Sept. 19, 2023 /PRNewswire/ -- BondBloxx Investment Management announces the launch of the BondBloxx USD High Yield Bond Sector Rotation ETF (HYSA), which began trading on the NYSE Arca on September 18. This active ETF is the first of its kind, offering access to a high yield bond sector rotation strategy that allocates among precise high yield bond sector ETFs and seeks to maximize total return. Macquarie Asset Management serves as the fund's sub-adviser, a role that leverages their extensive experience in active high yield bond portfolio management, research, and risk management, and builds on the partnership announced with BondBloxx earlier this year.

News for Bondbloxx USD High Yield Sector Rotation ETF (HYSA)