Corporate debt is reaching its highest level since before the financial crisis, which has caused Moody’s to warn that substantial trouble is ahead for junk bonds when the next downturn arrives.
For its part, HYS holds nearly 400 bonds, most of which are rated BBB- to B-. Investors do not have to sacrifice their attractive yields when limiting their sensitivity to rising rates, allowing investors to still generate income without having to move down the yield curve. HYS has a 30-day SEC yield of 4.73%, according to issuer data.
Year-to-date, HYS has seen inflows of nearly $63 million.
For more information on the fixed-income space, visit our bond ETFs category.