Each week, ETF Trends publisher Tom Lydon sits down for “ETF of the Week” for MarketWatch on Chuck Jaffe’s MoneyLife Show where he highlights big movers and losers among exchange traded funds.
This week, Lydon looked at the iShares iBoxx $ High Yield Corporate Bond ETF (NYSEArca: HYG), which began trading on April 4, 2007, just celebrated its 10th year of trading. This milestone provides 10-years of real time results for financial advisors and institutional investors to look back upon, which may further help the ETF growth and accumulate greater investment interest.
In its decade-long existence, HYG has showed a solid history of outperformance, returning a 5.6% average annualized return over the period. In contrast, the benchmark Bloomberg Barclays US Aggregate Bond Index showed an average annualized return of 4.3% over the past 10 years. Over the past year, HYG also increased 13.3%, compared to the Agg’s 0.4% gain.