BondBloxx USD High Yield Bond Consumer Cyclicals Sector ETF

XHYC

Market cap $25.2M

With summer travel and leisure spending underway, investors can utilize targeted high-yield sector investing to chase returns. Targeting a specific high-yield sector can provide a great deal of value to investors seeking portfolio diversification.

Macroeconomic uncertainty may have mounted in March, but high yield industry sectors still displayed room to grow. BondBloxx commentary noted that in March, total return performance was positive for all seven high yield industry sectors.

Despite any potential headwinds, the U.S. economy is continuing to show signs of resilience. For the week ended March 16, the Labor Department noted that claims for state unemployment benefits were falling.

The fate of potential interest rate changes from the Federal Reserve is still up in the air. But, high-yield bond sector ETFs remain a robust option for investors.

Last year, the market consensus was that there would be a recession in the second half of 2023. Instead, economic indicators have consistently outperformed market expectations.

Despite expectations for a recession in the second half of the year, markets were remarkably resilient in 2023. Inflation levels eased through most of the year, which enabled the Fed to pause its interest rate hikes.