SHYG track short-term speculative grade, or “junk,” debt, with an effective duration of 2.19 years. The ETF has a 0.50% expense ratio. [High-Yield Bond ETFs and Rising Rates]
Credit quality breakdown includes BBB- 7.4%, BB+ 8.1%, BB 8.9%, BB- 17.9%, B+ 13.5%, B 9.3%, B- 7.8%, CCC+ 6.8% and other 18.3%. The junk bond ETF has a small allocation to low investment-grade BBB- bonds.
In comparison, the similar iShares iBoxx $ Investment Grade Corporate Bond Fund (NYSEArca: LQD) has an effective duration of 7.48 years and a 3.54% 30-day SEC yield. The iShares iBoxx High Yield Corporate Bond (NYSEArca: HYG) has a 4.14 year effective duration and a 5.18% 30-day SEC yield.
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Max Chen contributed to this article.