HYLB Profile
The Xtrackers USD High Yield Corporate Bond ETF is designed to provide investors with exposure to a broad spectrum of high yield corporate bonds denominated in U.S. dollars. The fund seeks to achieve its investment objectives by investing at least 80% of its net assets, including any borrowings for investment purposes, in high yield corporate bonds. This approach targets bonds that offer higher yields compared to investment-grade securities, reflecting a higher risk-reward profile.
The fund tracks an index composed of U.S. dollar-denominated high yield corporate bonds, which represents a diverse array of issuers and industries. By focusing on high yield securities, the fund aims to capture the higher return potential inherent in lower credit quality bonds. The index includes bonds from various sectors, providing broad exposure to the high yield market while allowing investors to benefit from potential interest income and capital appreciation.
To align with the underlying index, the fund may concentrate its investments in specific industries or groups of industries. This concentration occurs if the index itself is weighted heavily towards particular sectors. As a result, the fund may allocate 25% or more of its total assets to a single industry or group of related industries, reflecting the sector allocation of the index. This concentrated exposure can amplify sector-specific risks and returns.
Being non-diversified, the Xtrackers USD High Yield Corporate Bond ETF focuses its investments according to the composition of its underlying index, potentially leading to greater exposure to specific industries or credit risks. The fund's strategy is geared towards investors seeking higher yields and who are comfortable with the associated risks of investing in high yield corporate bonds. By concentrating on high yield opportunities, the fund aims to deliver enhanced returns while reflecting the market dynamics of the U.S. high yield bond sector.
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