Credit Markets- The Line in the Sand$HYGH is probably the best proxy for assessing pure credit risk. Important weekly support levels that failed during the initial Covid crash are being tested at $79.75.
Key stats
About iShares Interest Rate Hedged High Yield Bond ETF
Expense ratio
0.52%
Home page
Inception date
May 27, 2014
HYGH tracks an index that primarily takes a long position in iShares iBoxx USD High Yield Corporate Bond ETF (HYG) and shorts Treasury futures to achieve a net-zero portfolio duration. The strategy is designed to capture the credit spread while minimizing interest-rate risk. The fund aims to invest its assets in funds investing in USD-denominated high-yield bonds and US Treasurys. Interest rate risks are mitigated through positions in both futures contracts and interest rate swaps. HYGH may also engage in securities lending or invest in other ETFs, government securities, options and swap contracts, short-term paper, cash and cash equivalents to meet its objectives. HYGH may also appeal to existing HYG investors who want to shorten their portfolio duration without significantly altering their underlying credit and liquidity profile. Prior to Dec. 1, 2021, the fund is actively-managed holding the ETF HYG and using the same strategy of hedging interest rate risk.
Classification
What's in the fund
Exposure type
ETF
Mutual fund
Bonds, Cash & Other100.00%
ETF65.56%
Mutual fund32.04%
Cash2.40%
Displays a symbol's price movements over previous years to identify recurring trends.