Meanwhile, the Xtrackers Low Beta High Yield Bond ETF tries to reflect the performance of the Solactive USD High Yield Corporates Total Market Low Beta Index, which includes junk-rated debt that exhibits lower overall beta to the broader high-yield bond market. Consequently, the portfolio is comprised of lower-yielding junk bonds that show a lower beta.
“We brought out new products that allow you to dial down the duration with our short duration high yield and we’ve also enabled investors to dial up the risk and dial down the risk with our high yield high beta and high-yield low beta offerings,” Luke Oliver, Managing Director and Head of ETF Capital Markets for the Americas at Deutsche Asset Management, said.
The two ETFs combined would mirror the portfolio of the broader Xtrackers USD High Yield Corporate Bond ETF (HYLB).
Furthermore, for those more concerned about interest rate risk, the Xtrackers Short Duration High Yield Bond ETF (NYSEArca: SHYL) goes down the yield curve to cover speculative-grade debt with shorter durations or lower sensitivities to changes in interest rates.
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