ETF spotlight on the iShares Global ex USD High Yield Corporate Bond ETF (NYSEArca: HYXU), part of an ongoing series.
Assets: $121.4 million
Objective: The iShares Global ex USD High Yield Corporate Bond fund tries to reflect the performance of the the Markit iBoxx Global Developed Markets ex-US High Yield Index, which is comprised of high yield, speculative grade corporate bonds denominated in euros, British pound sterling and Canadian dollars.
Holdings: Top holdings include Banco Popolare 1/28/2016 0.9%, Lafarge SA 6/26/2017 0.8%, Commerzbank 3/16/2021 0.7%, Heidelbergcement 1/31/2017 0.7% and Wind Acquisition Finance 2/15/2018 0.7%.
What You Should Know:
- BlackRock’s iShares sponsors the fund.
- HYXU has a 0.40% expense ratio.
- The fund has 388 components, and the top ten holdings make up 7.3% of the overall portfolio.
- Sector allocations include industrials 21.3%, financials 18.7%, consumer goods 14.1%, consuemr staples 9.8%, telecom 8.1%, basic materials 4.9%, technology 2.8%, health care 4.5%, utilities 4.4% and oil & gas 1.6%.
- Currency exposure includes euro 82.9%, pound sterling 8.0% and Canadian dollar 3.5%.
- Country weights include France 14.3%, Italy 11.9%, U.K. 11.4%, Netherlands 11.2%, Germany 10.7%, Luxembourg 10.4%, Spain 6.3%, Canada 5.5%, Ireland 2.7% and Portugal 2.0%.
- Credit quality include BBB 2.5%, BB 53.8%, B 25.3%, below B 3.% and not rate 15.0%.
- The ETF has an effective duration of 2.95 years – duration is a measure of a bonds sensitivity to change sin interest rate, and a 1% increase in rates could translate to a 2.95% dip in the bond ETF’s price.
- The fund has a 3.42% 30-day SEC yield.
- HYXU is up 1.2% over the past month, up 1.3% year-to-date and up 14.3% over the past year.
- The ETF is 4.1% above its 200-day exponential moving average.
- Since the ETF holds foreign-currency-denominated bonds, the ETF is subject to currency risks.
- A stronger U.S. dollar, or weaker euro, pound and Canadian dollar, would mean that the fund’s assets are worth less in USD terms.
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