WFHY Profile
The WisdomTree U.S. High Yield Corporate Bond Fund is an actively managed investment vehicle focusing on high yield corporate bonds within the U.S. market. The fund aims to provide investors with exposure to non-investment-grade corporate debt securities that are selected for their favorable fundamental and income characteristics. Under normal conditions, the fund allocates at least 80% of its total assets to securities included in the fund's underlying index, as well as investments with similar economic characteristics to those securities.
The underlying index of the fund is specifically designed to track the performance of issuers in the U.S. high yield corporate bond market. It includes bonds from companies rated below investment grade, which are often characterized by higher yields compared to investment-grade bonds. The index selects issuers based on criteria that evaluate their financial health, income potential, and overall creditworthiness, aiming to capture those with strong fundamentals and robust income profiles.
By investing in high yield bonds, the fund seeks to deliver higher returns compared to traditional investment-grade bond funds, reflecting the increased risk associated with lower-rated corporate debt. The high yield sector, also known as the junk bond market, offers the potential for higher income but comes with greater credit risk and volatility. The fund's strategy involves a careful selection process to mitigate these risks while seeking to maximize returns.
As a non-diversified fund, the WisdomTree U.S. High Yield Corporate Bond Fund concentrates its investments in a specific segment of the bond market. This focus allows for targeted exposure to high yield corporate bonds but can also lead to increased sensitivity to sector-specific fluctuations and credit events. The fund's investment approach is designed for investors seeking higher yields and willing to accept the associated risks of investing in non-investment-grade corporate bonds.
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