It is easy to see what investors have been captivated by European junk bonds. October was the best month in six for those bonds in terms of performance and yields are robust. IHY has a 30-day SEC yield of almost 5.5% with an effective duration of 3.68 years.
There has also been a swath of smaller European companies that have recently tapped the high-yield debt market, though many of the issuers found in IHY are large-cap firms such as Barclays (NYSE: BCS), ArcelorMittal (NYSE: MT) and Germany’s Commerzbank.
IHY uses a sampling strategy to track the BofA Merrill Lynch Global ex-US Issuers High Yield Constrained Index. The ETF has annual fees of 0.4%.
IHY Credit Quality
