The diversity offered by BYLD could prove appealing to investors dealing with generating yield on bond investors in a low interest rate world.
Yields on traditional core bonds are down 50% since 2008, but generating a 5% income stream requires taking on three times the risk as it did in 2008, according to iShares.
BYLD has an effective duration of 5.12 years and an annual expense ratio of 0.28%.
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of HYG and TLT.