IHY Profile
The VanEck International High Yield Bond ETF aims to provide investors with exposure to a diversified portfolio of high-yield corporate bonds issued by companies outside the United States. This fund focuses on bonds that are rated below investment grade, commonly referred to as "junk bonds," which typically offer higher yields due to their higher risk. The ETF's investment strategy centers on capturing income and potential capital appreciation from global corporate bonds that fall into this category.
The fund typically invests at least 80% of its total assets in securities that are part of its benchmark index. This index includes below investment grade bonds issued by corporations located in various countries around the world, excluding the U.S. These bonds may be issued in major currencies such as Euros, U.S. dollars, Canadian dollars, or pound sterling. By focusing on these regions, the ETF provides exposure to a broad range of international markets, including developed and emerging economies.
The index used by the fund encompasses bonds issued in major domestic and Eurobond markets, offering a comprehensive view of the global high-yield corporate bond landscape. This includes bonds from both well-established and emerging market companies. The ETF’s strategy seeks to capitalize on the higher yield opportunities presented by these bonds, aiming to deliver attractive returns to investors while managing the inherent risks associated with high-yield debt.
In pursuing its investment objectives, the VanEck International High Yield Bond ETF provides a strategic option for investors looking to diversify their bond portfolios with high-yield international securities. By investing in a broad array of bonds from outside the U.S., the fund allows investors to benefit from global economic growth and opportunities, while also exposing them to the additional risks of international markets. This approach aligns with VanEck’s focus on delivering value through diversified and specialized investment solutions.
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