XHYH Profile
The BondBloxx US High Yield Healthcare Sector ETF targets investments in high-yield, below-investment grade bonds issued by entities within the healthcare sector. This sector encompasses a wide range of industries including pharmaceuticals, biotechnology, medical devices, and healthcare services. By focusing on these bonds, the fund seeks to offer investors exposure to potentially higher returns linked to the healthcare industry's credit market, which may present significant growth and innovation opportunities.
The ETF is designed to invest at least 80% of its net assets, including any borrowed funds used for investment purposes, in bonds issued by healthcare companies that are rated below investment grade. These high-yield bonds, also known as junk bonds, are associated with higher credit risk but offer the potential for elevated yields. Investment in these securities can be achieved directly through the purchase of bonds or indirectly through the use of derivatives that mimic the performance of these high-yield assets.
As a non-diversified fund, the ETF concentrates its investments exclusively within the healthcare sector, which introduces specific sector-related risks. These include regulatory changes impacting drug approvals and pricing, innovations in medical technology, shifts in healthcare policy, and market dynamics affecting healthcare companies. The performance of healthcare bonds can be influenced by factors such as clinical trial results, patent expirations, and reimbursement rates.
The BondBloxx US High Yield Healthcare Sector ETF aims to provide investors with specialized exposure to the healthcare sector's high-yield bond market. By focusing on below-investment grade securities within this sector, the fund seeks to deliver potentially enhanced income opportunities while reflecting the unique risks and rewards associated with investing in the healthcare industry.
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