BondBloxx US High Yield Energy Sctr ETF’s management team is rated Average, but a solid investment process still helps this strategy retain its Morningstar Medalist Rating of Bronze. The portfolio maintains a cost advantage over competitors, priced within the cheapest fee quintile among peers.  

 The strategy's effective investment philosophy supports an Above 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 BB rated bonds compared with category peers. The team managing the passive strategy earns the strategy an Average People Pillar rating. The strategy's parent organization doesn't stand out, earning the firm an Average Parent Pillar rating. It has displayed a handful of investor-friendly attributes including overall low fees and continuity among portfolio managers.

Analyst Rating

BondBloxx US High Yield Energy Sctr ETF earns an Above Average Process Pillar rating. Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. The leading factor in the rating is that this fund tracks an index. Historical data, like Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. The firm's five-year retention rate of 100% also bolsters the rating. Lastly, the process is limited by the size of its portfolio management team, only two portfolio managers.

The investment strategy as stated in the fund's prospectus is: 

The investment seeks to track the investment results of the ICE Diversified US Cash Pay High Yield Energy Index composed of U.S. dollar-denominated, high yield corporate bonds in the energy sector.  Under normal circumstances, the fund will invest at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in high-yield, below-investment grade bonds denominated in U.S. dollars of issuers in the energy sector, either directly or indirectly (e.g., and through derivatives). It is non-diversified.  

 This strategy's 12-month yield is 6.5%, which mirrors its average peer. The portfolio's average surveyed credit quality is on par with peers, with both the fund and the average being rated B. In terms of long-term interest-rate risk, this strategy is on par with peers. The longer a strategy's duration, the more sensitive it is to shifts in interest rates. This fund, with a 3.3-year duration, is expected to gain 3.3% of its net asset value if interest rates drop by 1 percentage point, and vice versa.

Above Average

Process

BondBloxx Investment Management LLC’s team earns An Average People Pillar rating. The leading driver of the rating is the firm's five-year retention rate of 100%. A low cost, with fees that rank in its category's least costly fifth, also supports the rating. A higher expense ratio reduces net returns, so low costs give this team an advantage. Lastly, the rating is limited by the number of months that the management team has been running this vehicle together.

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 Bond Energy Sector ETF

XHYE tracks a modified market-value-weighted index of USD-denominated high yield corporate bonds of any maturity, issued by companies classified under the energy sector.

BondBloxx USD High Yield Bond Consumer Cyclicals Sector ETF

BondBloxx USD High Yield Bond Industrial Sector ETF

Macroeconomic uncertainty may have mounted in March, but high yield industry sectors still displayed room to grow. BondBloxx commentary noted that in March, total return performance was positive for all seven high yield industry sectors.

Take Advantage of High Yield Industry Sectors

Despite any potential headwinds, the U.S. economy is continuing to show signs of resilience. For the week ended March 16, the Labor Department noted that claims for state unemployment benefits were falling.

High Yield Bond Sectors Remain Robust

BondBloxx JP Morgan USD Emerging Markets 1-10 Year Bond ETF

Last year, the market consensus was that there would be a recession in the second half of 2023. Instead, economic indicators have consistently outperformed market expectations.

A Resilient Economy Means Opportunities in Fixed Income

Bondbloxx USD High Yield Sector Rotation

BondBloxx CCC-Rated USD High Yield Corporate Bond ETF

BondBloxx USD High Yield Bond Consumer Non-Cyclicals Sector 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

High yield fixed income has always been considered a riskier investment relative to other bonds. But strong corporate fundamentals are making this asset class far less risky these days.

High Yield Looking Less Risky These Days

BondBloxx USD High Yield Bond Healthcare Sector ETF

High yield did well across multiple sectors in the U.S., according to the BondBloxx Fixed Income Monthly Update for August. Six of the seven high yield industry sectors generated positive returns in August.

High Yield Fared Well Across Most Sectors in August

After an historically bad year for bonds in 2022, high yield bond issuers entered 2023 from a position of strength. And according to fixed income specialist BondBloxx, they're likely to remain resilient entering the second half of the year.

Consider Sector Positioning Within High Yield in 2H23

Despite the fixed income market being bigger than the equity market, most ETF assets under management are benchmarked to equity indexes. Most bond ETFs are confined to broad index classes.

Target Precise Fixed Income Exposure While Yields Are High

High yield fixed income funds saw high dispersion with yields among industries in March, driven in part by uncertainty over where markets are headed. As a result, high yield fixed income within the consumer non-cyclicals and energy experienced outperformance last month, according to BondBloxx Investment Management.

High Yield Shines in Consumer Non-Cyclicals, Energy Sectors

BondBloxx Investment Management co-founder Joanna Gallegos thinks “that more portfolios are going to be allocated towards fixed income” in 2023, since “yields have historically grown at a rate that we've never seen.” “Bonds have changed in just one year's time to be incredible contributors to your portfolio return for 2023,” she added.

Yields Now at Rates Never Seen Before

BondBloxx USD High Yield Bond Financial & REIT Sector ETF

Fixed income has been making a comeback this year after a historically bad year in 2022. In particular, investors are increasingly turning to high-yield bond funds.

Investors Seek High Yield in Multiple Sectors

Despite the potential for spread widening if the U.S. heads into a recession, high yield corporates, particularly bonds in the energy and core industrial sectors, could generate positive total return performance in 2023, reflecting the higher coupon income.

High Yield Corporates Have Potential to Outperform In 2023

Investors are awaiting the Federal Reserve's decision on how it will move forward with interest rate hikes. But despite some new estimates of how the U.S. central bank will proceed, analysts and industry observers agree that the Fed will continue to raise rates to combat inflation until it reaches its target of 2%.

High-Quality High Yield Provides Investors With Ample Opportunity

After hitting a record high earlier this year, gas prices are continuing to decline. According to AAA, the average national gas price was $3.94 per gallon as of August 17, down from more than $5 earlier this summer.

Despite Lowered Oil Prices, High Yield Energy Remains Attractive

While this is a rough market for fixed income, BondBloxx co-founder Joanna Gallegos believes that her company came to the market with its high-yield bond ETFs “right on time.” In February, BondBloxx launched seven U.S. high-yield bond ETFs that offer precise, index-based exposure to the high-yield asset class and allow investors the opportunity to diversify and manage [.

BondBloxx Co-Founder: “We're Right on Time” Bringing High-Yield Fixed Income to Market

SmartETFs Asia Pacific Dividend Builder ETF

ProShares Bitcoin Strategy ETF

SmartETFs Dividend Builder ETF

American Century Focused Dynamic Growth ETF

American Century Focused Large Cap Value ETF

SPDR Bloomberg High Yield Bond ETF

iShares iBoxx $ Investment Grade Corporate Bond ETF

Vanguard Intermediate-Term Corporate Bond ETF

In the last nearly 800 days, the growing number of advisors that incorporate ETFs into their practice have only been able to digitally learn what makes one product different from another. But next week, that will end, as many descend to Florida for Exchange, An ETF Experience.

Recapping Key Milestones Before Next Week's Exchange Conference

Russia's invasion of Ukraine has not just led to oil prices soaring above $100 a barrel, but also to traders of crude oil rejecting barrels that come from Russia. This response from traders means that sanctions have disrupted energy markets more than expected, Reuters is reporting.

XHYE Provides High-Yield Exposure to U.S. Energy Sector

BondBloxx USD High Yield Bond Telecom Media & Technology Sector ETF

Seven funds will target industry sectors of the US high yield bond asset class including Energy; Industrials; Financial and REIT; Telecom, Media & Technology; Healthcare; Consumer Cyclicals; and Consumer Non-cyclicals

News for BondBloxx USD High Yield Bond Energy Sector ETF ETF (XHYE)