BondBloxx USD High Yield Bond Industrial Sector ETF

XHYI

Market cap $43.3M

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.

The U.S. economy defied expectations in 2023, avoiding a recession thanks to lowered inflation and a strong labor market. And after an abysmal year for fixed income in 2022, fixed income markets rebounded last year.

High yield fixed income has always been considered a riskier investment relative to other bonds. But strong corporate fundamentals are making this asset class far less risky these days.