HYXF Profile
The iShares ESG Advanced High Yield Corporate Bond ETF focuses on providing exposure to high yield corporate bonds that meet stringent environmental, social, and governance (ESG) criteria. Under normal market conditions, the fund invests at least 90% of its total assets in the securities that make up its underlying index. The remaining 10% of the fund’s assets may be allocated to futures, options, swap contracts, as well as cash and cash equivalents to manage liquidity and investment flexibility.
The underlying index is specifically designed to track the performance of U.S. dollar-denominated high yield corporate bonds issued by companies with strong ESG credentials. These credentials are determined by the index provider, which applies a series of rigorous ESG screening processes to identify eligible securities. The index aims to include bonds from issuers that not only offer high yields but also demonstrate a commitment to sustainable and responsible business practices.
By incorporating advanced ESG screening, the fund seeks to address investor demand for sustainable investing while pursuing high yield returns. The inclusion of ESG factors in the investment process aims to mitigate risks associated with environmental, social, and governance issues, potentially enhancing long-term performance and stability. The fund’s approach reflects a growing trend in the fixed income market towards integrating ESG considerations into investment decisions.
As an actively managed ETF, the iShares ESG Advanced High Yield Corporate Bond ETF offers investors a way to gain exposure to high yield corporate bonds with an emphasis on ESG factors. This focus on sustainability and corporate responsibility is increasingly important to investors who are looking to align their portfolios with their values while still seeking attractive yield opportunities. The fund’s strategy provides a blend of income generation and ESG alignment, catering to a growing segment of responsible investors.
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