THYF Profile
The T. Rowe Price U.S. High Yield ETF is designed to provide investors with exposure to the high-yield bond market in the United States. The fund primarily invests at least 80% of its net assets, including any borrowings for investment purposes, in high-yield, non-investment-grade securities issued in the U.S. These high-yield instruments, often referred to as "junk bonds," offer higher interest rates compared to investment-grade bonds but come with increased risk.
The fund's investment strategy focuses on U.S. dollar-denominated securities, ensuring that the majority of its assets are allocated to high-yield instruments issued within the United States. This concentration on domestic securities allows the fund to target bonds with potentially higher yields while mitigating currency risk associated with international investments. By investing in U.S. high-yield bonds, the fund aims to capture opportunities for higher returns in the domestic credit market.
In addition to its primary focus on U.S. dollar-denominated high-yield securities, the fund retains the flexibility to invest up to 20% of its total assets in non-U.S. dollar-denominated foreign high-yield instruments. This diversification strategy provides potential exposure to international high-yield markets, allowing the fund to capitalize on global opportunities while maintaining a core focus on U.S. securities.
Managed by T. Rowe Price, a leading global asset management firm, the ETF benefits from the firm's extensive research capabilities and expertise in fixed income investing. T. Rowe Price employs a rigorous investment process to select high-yield securities, focusing on credit quality, issuer fundamentals, and market conditions. The T. Rowe Price U.S. High Yield ETF aims to deliver competitive yields while managing credit and interest rate risks, making it suitable for investors seeking higher income in a diversified high-yield bond portfolio.
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