BlackRock also came out with a new high-yield bond ETF based on the emerging markets – the iShares Emerging Markets High Yield Bond Fund (BATS: EMHY). The fund has an expense ratio of 0.65%. What makes this fund interesting is that its portfolio includes global economies that most other funds do not provide access to, such as Lebanon and Nigeria at 4% each. [iShares Lists New High-Yield ETFs]
Nevertheless, it should be noted that these are still known as junk bonds and are more correlated with movements in the equities market. In any fast market declines, junk bonds will trade like any risky asset.
For more information on high-yield generating bonds, visit our high-yield bonds category.
Max Chen contributed to this article.