HYGV Profile
The FlexShares High Yield Value-Scored Bond Index Fund is designed to offer investors exposure to a broad range of U.S.-dollar denominated high yield corporate bonds. The fund aims to deliver a higher total return compared to the overall high yield corporate bond market, as benchmarked by the Northern Trust High Yield US Corporate Bond Index. By focusing on a value-scoring methodology, the fund seeks to identify and invest in high yield bonds that are expected to offer superior returns relative to their peers, taking into account both credit quality and market conditions.
Under normal market conditions, the fund commits at least 80% of its total assets, excluding collateral from securities lending, to securities included in its underlying index. This ensures a strong correlation with the index's performance and aligns with the fund’s objective of achieving returns that exceed the broad high yield market. The investment strategy emphasizes a disciplined approach to selecting high yield bonds, incorporating a value-scoring system to prioritize securities that offer potentially higher returns.
The index tracked by the fund comprises a diverse range of high yield corporate bonds, reflecting various industries and sectors within the U.S. market. This diversification helps to mitigate individual bond risk while aiming to capitalize on the higher yield opportunities available within the high yield segment. The fund's approach to selecting bonds based on value scoring provides an additional layer of analysis, targeting bonds that are perceived to offer better risk-adjusted returns.
As a result, the FlexShares High Yield Value-Scored Bond Index Fund presents a strategic option for investors seeking enhanced returns from the high yield bond market. The fund's focus on value-scoring and its significant allocation to index securities underscore its commitment to outperforming the broader high yield market. This approach, combined with a broad market exposure, makes it a potentially attractive choice for investors looking to capitalize on high yield opportunities while managing risk through diversified holdings.
|
