GHYG Profile
The iShares US & International High Yield Corporate Bond ETF is designed to offer investors exposure to a diversified portfolio of high-yield corporate bonds from both U.S. and international issuers. The fund invests at least 80% of its assets in securities that are components of its underlying index, with a focus on fixed-income securities that align with the characteristics of the index. This includes bonds rated below investment grade, often referred to as "junk" bonds, which typically offer higher yields to compensate for their increased risk.
The underlying index tracked by the fund is a rules-based benchmark that encompasses high-yield corporate bonds denominated in multiple currencies, including U.S. dollars, euros, British pounds sterling, and Canadian dollars. By including bonds from a range of currencies, the index provides broad exposure to global high-yield markets, allowing investors to benefit from the higher income potential of these securities while diversifying currency risk.
The fund is managed by BlackRock Fund Advisors (BFA), which uses a strategy aimed at replicating the performance of the index. This involves investing at least 90% of the fund's assets in fixed-income securities that are included in the index or closely aligned with its investment criteria. The fund's approach is designed to closely track the performance of the underlying index, providing investors with a reliable way to access the high-yield corporate bond market while managing portfolio risk.
As a high-yield bond fund, it is important to note that this ETF carries higher risk compared to investment-grade bond funds. The inclusion of bonds from a range of sectors and geographic regions offers potential for higher returns but also involves significant credit risk. The fund's strategy and investment focus reflect a commitment to delivering income through exposure to high-yield corporate debt, appealing to investors seeking higher yield and willing to accept the associated risks.
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