Nearly 46% of HYGH’s holdings include yields tied to a fixed-income portfolio of bonds with a BB credit rating and another 40 percent with a B credit rating–more credit risk in lieu of higher yields as opposed to bonds with credit ratings higher than BB.
Although HYGH manages interest rate risk, its yield is inline with traditional junk bond funds. For example, the rate-hedged fund has a 30-day SEC yield of 5.79%, the same yield that is found on the unhedged HYG. HYGH’s three-year standard deviation of 5.48% is slightly higher than HYG’s.
HYGH debuted just over four years ago and has $322.26 million in assets under management. It charges 0.54% per year, or $54 on a $10,000 investment.
For more information on the fixed-income market, visit our bond ETFs category.