iShares Broad USD High Yield Corporate Bond ETF

USHY tracks a market value-weighted index of USD-denominated high yield corporate debt with broad maturities.

The narrowing spread between U.S. investment-grade yields and high-yield bonds has become a risk to consider. Historically, high-yield bonds underperform during periods of spread expansion, as seen in 2018 and 2020. The current divergence between the yield spread and the VIX index indicates rising market volatility and declining risk perception.

USHY: Yield Spread Hits A New Low Vs. Investment-Grade Bonds (Rating Downgrade)

BlackRock Advantage Large Cap Income ETF

Invesco China Technology ETF

First Trust Long/Short Equity ETF

NEOS Enhanced Income Credit Select ETF

Xtrackers USD High Yield Corporate Bond ETF

iShares MSCI India ETF

Roundhill Magnificent Seven ETF

VanEck Vectors Uranium+Nuclear Energy ETF

Oklo Inc

Oracle

Invesco S&P 500 Equal Weight Technology ETF

iShares MSCI USA Small-Cap Multifactor ETF

SPDR Portfolio High Yield Bond ETF

SPDR Portfolio S&P 500 ETF

Global X Uranium ETF

BondBloxx CCC-Rated USD High Yield Corporate Bond ETF

Technology Select Sector SPDR Fund

PIMCO 25+ Year Zero Coupon US Treasury Index ETF

The 'Undercovered' Dozen series highlights lesser-covered ETFs, offering insights from various authors on potential investment opportunities and market trends. Global X Uranium ETF is seen as well-placed for a uranium bull market, driven by increasing demand for nuclear energy from major tech companies. iShares MSCI India ETF offers exposure to India's fast-growing economy, presenting perhaps a strong investment opportunity despite recent pullbacks due to shifts towards the Chinese market.

Undercovered ETFs: Nuclear, Uranium, China, India +

VanEck Fallen Angel High Yield Bond ETF

iShares Fallen Angels USD Bond ETF

iShares 20+ Year Treasury Bond ETF

A strong economy and falling interest rates have been a great combination for investors in high-yield bonds.

Junk Bonds Have a ‘Fallen Angel' Problem

SPDR Bloomberg 1-3 Month T-Bill ETF

Vanguard Total Bond Market ETF

Panagram Bbb-B Clo Etf

iShares 7-10 Year Treasury Bond ETF

Janus Henderson AAA CLO ETF

iShares iBoxx $ Investment Grade Corporate Bond ETF

WisdomTree Bloomberg Floating Rate Treasury Fund

Federal Reserve cuts will lead to lower dividend yields on ultra short-term and variable rate investments. Most of these trade with healthy spreads to comparable fixed-rate bonds. Breakevens vary though, with some variable rate investments likely to offer above-average yields for years to come, others not so much.

Breakeven Federal Reserve Cuts For Short-Term And Variable Rate ETFs

iShares Core U.S. Aggregate Bond ETF

SPDR Gold Trust

iShares Core S&P Small Cap ETF

JPMorgan Ultra-Short Income ETF

PIMCO Enhanced Short Maturity Active ETF

SPDR S&P 500 ETF Trust

Vanguard FTSE Developed Markets ETF

For some people, the early days of the fourth calendar quarter is a good time for reflection. In life and certainly in portfolios.

A Time for Portfolio Reflection

iShares Broad USD High Yield Corporate Bond ETF is the largest high-yield corporate bond ETF in the market. It yields 6.6% and has performed reasonably well since inception. USHY is a solid income ETF and one without significant advantages or disadvantages to high-yield peers.

USHY: Largest High-Yield Corporate Bond ETF, Good 6.6% Dividend Yield And Performance

Blackrock Flexible Income ETF

Blackrock High Yield ETF

iShares Core Total USD Bond Market ETF

iShares Short Maturity Bond ETF

Fixed income ETFs continue to gain traction globally. As of August 2024, the asset category managed $2.5 trillion in assets, with iShares managing $1 trillion alone.

iShares Hits $1 Trillion in Fixed Income ETFs Globally

Invesco BulletShares 2028 Corporate Bond ETF

iShares iBonds Dec 2028 Term Corporate ETF

SP Plus

BondBloxx BB-Rated USD High Yield Corporate Bond ETF

While ETF popularity continues to grow, education remains key. Some advisors and investors use ETFs along with mutual funds or individual securities.

Precise Exposure of Fixed Income ETFs

Simplify High Yield PLUS Credit Hedge ETF

iShares iBoxx High Yield Corporate Bond ETF

SPDR Bloomberg High Yield Bond ETF

Schwab High Yield Bond ETF

BondBloxx USD High Yield Bond Healthcare Sector ETF

The U.S. high yield bond ETF category has a new asset leader. The iShares Broad USD High Yield Corporate Bond ETF (USHY) is now the largest high yield bond ETF in the market, with assets totaling $15.9 billion as of Aug.15.

High Yield Bond ETFs Have New Asset Leader

iShares Broad USD High Yield Corporate Bond ETF is the largest “junk bond” ETF, based on assets under management. The USHY ETF has an attractive yield, but its price has suffered a 12% decay since 2017 and distributions have not kept pace with inflation. USHY has a very cheap fee and outperformed most competitors, but it lags “fallen angels” funds.

USHY: A Low-Fee Junk Bond ETF

Invesco S&P 500 Equal Weight ETF

Plenty of investors may be out of office this summer, but ETFs aren't on vacation. Despite ETFs frequently seeing Summer lulls, this year inflows are nearing a record pace.

No Summer Vacation for ETFs as Flows Near Record Pace in July

iShares Russell 2000 ETF

Direxion Daily Semiconductor Bull 3x Shares

Vanguard S&P 500 ETF

ETFs across various categories pulled in $22.1 billion in capital last week.

5 ETFs That Gained Maximum Investor Attention Last Week

iShares 5-10 Year Investment Grade Corporate Bond ETF

iShares Short Treasury Bond ETF

SPDR Portfolio Intermediate Term Corporate Bond ETF

Vanguard Intermediate-Term Corporate Bond ETF

Taking on credit risk but not interest rate risk has been relatively rewarding to ETF advisors and investors thus far in 2024. The iShares Broad USD High Yield Corporate Bond ETF (USHY) had a year-to-date total return of 3.6% as of July 8.

What Advisors Find Appealing in Fixed Income for 2H

Invesco Senior Loan ETF

Alpha Architect 1-3 Month Box ETF

Fidelity Total Bond ETF

Fidelity Wise Origin Bitcoin Fund

iShares Bitcoin Trust

iShares Core S&P 500 ETF

iShares S&P 500 Growth ETF

Invesco QQQ

iShares 0-3 Month Treasury Bond ETF

VanEck Vectors Semiconductor ETF

iShares PHLX Semiconductor ETF

 SPDR Blackstone Senior Loan ETF

Vanguard Growth ETF

Utilities Select Sector SPDR Fund

Markets steadily march on to record highs, as Q2 2024 wraps up. Many patterns that emerged earlier in the year once again prevailed through the fog of geopolitical and rate uncertainty.

The ETF Flowdown: Q2 2024

Investors have embraced taking on credit risk recently but industrywide have also favored actively managed ETFs. With its latest active offering, BlackRock seeks to tap into both trends.

BlackRock Takes an Active Approach to High Yield

iShares Broad USD High Yield Corporate Bond ETF has performed well with 3-year rates falling in the last 6 months and declining credit spreads. However, we strongly agree with lower credit spreads, particularly as the soft landing narrative becomes questioned. An inverted yield curve might already be accounting for associated rate declines on possibly worsening economic conditions with upcoming maturity walls.

USHY: Soft Landing In Question, Yet Credit Spreads Go Lower

BondBloxx BBB Rated 1-5 Year Corporate Bond ETF

iShares 0-5 Year High Yield Corporate Bond ETF

SPDR Bloomberg Short Term High Yield Bond ETF

The largest high yield bond ETFs have been out of favor for much of 2024. However, many advisors recently told VettaFi they think the style will perform best going forward.

Taking on More Credit and Less Rate Risk

PIMCO Active Bond ETF

Pimco Commodity Strategy Active Exchange-Traded Fund

Simplify Managed Futures Strategy ETF

WisdomTree Emerging Markets Local Debt Fund

iShares JP Morgan USD Emerging Markets Bond ETF

iShares Core MSCI International Developed Markets ETF

IQ CBRE Real Assets ETF

iShares Russell 3000 ETF

JPMorgan Emerging Markets Equity Core ETF

T Rowe Price US High Yield ETF

Vanguard Total Stock Market ETF

By: Nolan Mauk In the post-pandemic era marked by economic uncertainty, volatility, geopolitical tension, and deglobalization, one thing has been made clear: no market, sector, or asset class is immune to the effects of rapidly changing market cycles.

All-Seasons Investing: The Case for a Diversified Asset Allocation

The ETF USHY is a preferred investment solution compared to its competitors, as high-yield bonds have historically maintained their value. The current yields of the ETF present a low-risk premium, despite the default risk of junk bonds remaining essentially stable (expected to be 4.74% for December 2024). However, the ETF has always demonstrated a great ability to preserve capital.

USHY: High-Yield Bonds Are Expensive But The Market Loves Them

Oaktree Specialty Lending

Leading credit investors believe that the case for high-yield bonds remains strong, with a high expected return.

Why High-Yield Bonds Could Outperform: Pick 7.5%-Yielding SPHY

Alerian MLP ETF

BNY Mellon Core Bond ETF

SPDR Gold MiniShares Trust

iShares Gold Trust Micro

Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF

ROBO Global Robotics and Automation ETF

Vanguard Information Technology ETF

Vanguard FTSE Emerging Markets ETF

Advisors got educated about ETFs and ETF experts got to show off their knowledge. What could be more enjoyable than that for an ETF nerd?

Exchange: Are You as Smart as an ETF Nerd?

iShares Core Conservative Allocation ETF

WisdomTree Japan Hedged Equity Fund

First Trust Morningstar Dividend Leaders Index Fund

Global X MSCI Colombia ETF

ALPS International Sector Dividend Dogs ETF

Alpha Architect International Quantitative Value ETF

ProShares S&P 500 Dividend Aristocrats ETF

Invesco High Yield Equity Dividend Achievers ETF

Vanguard Dividend Appreciation ETF

Here is a retirement portfolio for the year 2024 that investors can pursue.

An ETF Retirement Portfolio for 2024

Bondbloxx USD High Yield Sector Rotation

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

HYG is the largest high-yield bond ETF in the market. It is not a particularly good choice. A look at the fund, and some better alternatives, follows.

Consider Selling HYG And Buying SPHY Or USHY Instead

iShares Broad USD High Yield Corporate Bond ETF has a broad diversification and decent performance compared to peers, but mid-term outlook is not appealing. Current credit spreads suggest high-yield bonds are priced optimistically, despite worsening economic data. Investors should proceed with caution and be aware of risks when investing in USHY and similar high-yield bond ETFs.

USHY: Not Enough Premium For The Risk

News for iShares Broad USD High Yield Corporate Bond ETF ETF (USHY)