The new ETF may also include USD-denominated, speculative-grade debt issued by foreign companies. Current country exposure includes a large 85.6% U.S. tilt, along with 4.3% Canada, 4.1% United Kingdom, 4.1% France and 1.1% Netherlands.

The fund will limit sector concentrations to up to 25% of its total assets. As of September 30, 2016, the underlying index included 1,616 debt securities issued by 435 different issuers from Australia, Belgium, Bermuda, British Virigin Islands, Canada, Cayman Islands, Finland, France, Germany, Ireland, Italy, Japan, Jersey Channel Islands, Liberia, Luxembourg, Marshall Islands, Netherlands, Norway, Singapore, Sweden, the U.K and the U.S.

The new HYLB will be competing directly with the iShares iBoxx $ High Yield Corporate Bond ETF (NYSEArca: HYG) and SPDR Barclays High Yield Bond ETF (NYSEArca: JNK). Long-term investors may find HYLB as a cheaper alternative to the JNK, which has a 0.40% expense ratio, and HYG, which has a 0.50% expense ratio.

For more information on new fund products, visit our new ETFs category.