Invesco PowerShares has launched a new global high-yield exchange traded fund focused on bonds with shorter maturities. The fund joins a growing list of ETFs designed for bond investors who want international diversification, yield and some protection from rising interest rates.
According to a press release, the PowerShares Global Short Term High Yield Bond Portfolio (NYSEArca: PGHY) began trading Thursday, June 20. The bond ETF provides exposure to short-term U.S. dollar-denominated, high-yield debt, including sovereign, quasi-government and corporate bond securities, issued globally. PGHY has a 0.35% expense ratio and is expected to distribute yields monthly. [New High-Yield ETF to Track Global Short-Maturity Bonds]
The ETF has 31 holdings and the top components include ALROSA Finance 8.9%, Home Credit & Finance Bank 7.0%, AES Corp 7.8%, Vimpel Communications VIA VIP Financiace Ireland 6.5% and Metinvest BV 10.3%.
Credit quality allocations include BBB 3%, BB 48%, B 24%, CCC 3% and C 21%.
“The PowerShares global Short Term High Yield Bond Portfolio (PGHY) provides a convenient way for investors to gain exposure to a portfolio of high-yield bonds from issuers around the globe, while taking on a relatively low level of interest rate risk,” Lorraine Wang, Invesco PowerShares senior vice president of new product development, said in the press release.