HYXU Profile
The iShares International High Yield Bond ETF is designed to offer investors exposure to a diversified portfolio of high yield corporate bonds issued outside the United States. Under normal market conditions, the fund invests at least 80% of its total assets in the component securities of its underlying index. Additionally, the fund allocates at least 90% of its assets to fixed income securities that match the types and characteristics of those in the index, as determined by the fund's advisor.
The underlying index is a rules-based benchmark that focuses on high yield corporate bonds issued in euros, British pounds sterling, and Canadian dollars. This index is designed to capture the performance of international high yield bonds, providing exposure to non-U.S. markets. By including bonds from issuers across multiple currencies and countries, the index aims to offer a broad view of global high yield credit markets.
The fund’s strategy involves selecting securities that closely align with the composition of the index, seeking to replicate its performance while providing investors with diversified income opportunities from high yield bonds in foreign currencies. This approach helps manage currency and credit risk, allowing investors to benefit from global high yield markets while minimizing the impact of individual bond performance on the overall portfolio.
With its focus on high yield bonds issued outside the U.S., the iShares International High Yield Bond ETF caters to investors seeking enhanced yield and geographic diversification. The fund’s investment in non-dollar-denominated bonds adds an additional layer of diversification, potentially improving the risk-return profile of an investor's fixed income allocation. This strategic approach aligns with broader investment goals of achieving higher income while gaining exposure to international markets.
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