On the heels of its short-duration junk bond ETF launch, Deutsche Asset Management expanded on its fixed-income line with two more high-yield bond ETF strategies.
On Thursday, Deustche Asset Management launched the Xtrackers High Beta High Yield Bond ETF (NYSEArca: HYUP) and Xtrackers Low Beta High Yield Bond ETF (NYSEArca: HYDW), which have a 0.35% and 0.25% expense ratio, respectively.
HYUP offers investors access to speculative-grade higher beta bonds, while HYDW provides access to lower beta bonds.
Specifically, the Xtrackers High Beta High Yield Bond ETF tries to reflect the performance of the Solactive USD High Yield Corporates Total Market High Beta Index, which includes the high-yield corporate bond market that exhibits higher overall beta to the broader high yield corporate bond market. Beta is a measure of a security’s sensitivity or volatility and reflects the rate of change in a security’s price that results from overall market moves. Higher yielding securities also tend to exhibit higher beta.