ETF Spotlight on the PIMCO 0-5 Year High Yield Corporate Bond Index Fund (NYSEArca: HYS), part of an ongoing series.
Assets: $313.8 million.
Objective: The 0-5 Year High Yield Corporate Bond Index Fund tries to reflect the performance of the BofA Merrill Lynch 0-5 Year High Yield Constrained Index, which is comprised of high-yield corporate bonds with a short maturity.
Holdings: Top holdings include: Repo 6.5%, Ally Financial 2.5%, Sprint Nextel 2.1%, HCA Unsec Glbl 1.8% and MGM Resorts Intl 1.5%.
What You Should Know:
- The Pacific Investment Management Company sponsors the fund.
- HYS has an expense ratio of 0.55%.
- The fund has 212 holdings and the top ten make up 20.3% of the overall portfolio.
- The ETF has an effective maturity of 2.71 years and an effective duration of 1.8 years.
- S&P credit rating breakdown include: BBB 0.9%, BBB- 5.3%, BB+ 12.7%, BB 11.5%, BB- 14.6%, B+ 10.9%, B 8.7%, B- 14.8%, CCC+ 7.1%, CCC 5.2%, CCC- 1.2 and D 0.2%.
- Country allocations: U.S. 84.3%, U.K. 3.2%, Canada 2.5%, Norway 2.3%, Australia 1.8%, Luxembourg 1.8%, Germany 1.1%, France 1.1% Japan 0.9%, Netherlands 0.5% and other 0.6%.
- HYS has a dividend yield of 5.5%.
- The fund is up 1.4% over the last month, up 0.9% of the past three months and up 4.1% year-to-date.
- The ETF is 1.0% above its 200-day exponential moving average.
The Latest News:
- A new Fitch Ratings report revealed that the trailing 12-month U.S. high yield default increased to 2.2% in May, the first time defaults are above 2% since October 2010, according to a press release.
- May defaults added a combined $3.9 billion in bonds, with year-to-date defaults at $9.6 billion.
- Nevertheless, the report also noted that a large group of high yield debt rated BB or B confirmed that U.S. corporate fundamentals still remain in healthy shape.
- About two thirds of companies sampled had year-over-year increases in revenue and EBITDA through the first quarter.
PIMCO 0-5 Year High Yield Corporate Bond Index Fund
For past stories in this series, visit our ETF Spotlight category.
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.