Instead of following passive benchmarks designed to mirror the U.S. High Yield Corporate market, HYLD employs an actively managed approach that seeks the right mix of individual corporate bond issues and according to the issuer’s literature, “Peritus takes a value-based, active credit approach to the markets, largely foregoing new issue participation, favoring instead the secondary market where Peritus believes there is less competition and more opportunities for capital gains. Peritus de-emphasizes relative value in favor of long-term, absolute returns.”
HYLD has raised more than $188 million in assets under management, and stands as the second largest fund in total AUM issued by AdvisorShares.
Comparatively, yields of these funds look like the following: JNK 6.72%, HYG 6.55%, and HYLD 8.31%, so in an atmosphere of searching for yield amongst institutional investment managers, HYLD will likely continue to pop onto more radars.
Peritus High Yield ETF
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