iShares Broad USD High Yield Corporate Bond ETF

USHY

Market cap $26.5B

The iShares Broad USD High Yield Corporate Bond ETF boasts $26.7B AUM and headline yields above 7%, but deeper analysis reveals lower effective yields. USHY's portfolio is dominated by BB and B-rated bonds, with a median yield to maturity of 6.54%, notably below the weighted average YTM. Over 63% of USHY's holdings yield less than 7%; high-yield outliers (>10% YTM) represent only 6.61% of the portfolio by weight.

Kevin Warsh was sworn in as Federal Reserve Chairman this week, and the most striking thing about his arrival is how little Wall Street seems to care.

The amount of natural gas flowing to the nine big U.S. liquefied natural gas ‌export plants looked set to hit a 16-week low on Tuesday even though QatarEnergy/Exxon Mobil's Golden Pass plant in Texas was on track to return, according to data from financial company LSEG.

Income-focused investors are in a real dilemma as government bond yields surge amid the rising inflation rate in the United States. Do they invest in the blue-chip Schwab US Dividend Equity ETF (SCHD) or invest in the higher-yielding JPMorgan Premium Income ETF (JEPI).

U.S. natural gas futures were higher and on track to post weekly gains, supported in part by a warmer weather outlook and a close-to-normal storage report for last week.

AI-driven electricity demand is forcing a decade of infrastructure spending into five years. The municipal bond market is becoming a primary financing channel for that buildout, creating income opportunity.

April showers came in the form of more inflows raining down on the exchange-traded fund (ETF) market last month. Assets under management (AUM) have now grown to a staggering $14.7 trillion for the year.

The FlexShares High Yield Value-Scored Bond ETF (HYGV) made its debut on 07/17/2018, and is a smart beta exchange traded fund that provides broad exposure to the High-Yield/Junk Bond ETFs category of the market.

High-yield bonds pay more than Treasuries for a reason: the companies issuing them carry real default risk.

iShares Broad USD High Yield Corporate Bond ETF offers a ~7% yield, but only 1–2% is true compensation for credit risk. USHY's current ~300 bps spread reflects a benign credit environment, leaving little upside and exposing investors to open-ended downside if spreads widen. Spread volatility poses significant risk: a 100–200 bps widening could erase a full year's expected return, while upside is capped with limited tightening potential.