Average Daily Volume
48.62M
Fund Overview
The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) is one of the largest and most liquid ETFs focused on high-yield corporate bonds. It seeks to track the investment results of the Markit iBoxx USD Liquid High Yield Index, which is composed of U.S. dollar-denominated, high-yield corporate bonds. The fund provides exposure to a broad range of issuers across various sectors, offering investors a way to access the higher yields associated with below-investment-grade debt. HYG is widely used by investors seeking income and diversification within fixed-income portfolios, though it carries higher risk compared to investment-grade bond funds.
- Asset Class
-
Bond
- Industry
-
High Yield Bonds
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 6.97 %
- Currency Hedged
-
No
- Portfolio Turnover
-
11 %
- Dividend Date
-
Why Invest in the HYG ETF?
Potential Benefits
- Offers higher yield potential compared to investment-grade bonds, making it attractive for income-focused investors.
- Provides diversification across a broad range of high-yield corporate issuers and sectors.
- Highly liquid, with tight bid-ask spreads, facilitating ease of trading.
- Tracks a well-established index (Markit iBoxx USD Liquid High Yield Index), providing transparency and consistency.
- Can serve as a tactical allocation for investors seeking to enhance portfolio yield in a low-interest-rate environment.
Potential Risks
- Higher default risk compared to investment-grade bonds, as the fund holds below-investment-grade debt.
- Sensitive to economic downturns, as credit spreads may widen during periods of market stress.
- Interest rate risk: Rising rates can negatively impact bond prices, though high-yield bonds are generally less rate-sensitive than Treasuries.
- Liquidity risk in extreme market conditions, as high-yield bonds may become harder to trade.
- Sector concentration risk, as certain industries (e.g., energy, retail) may be overrepresented in the index.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+0.6%
|
0.0%
|
-1.0%
|
+1.5%
|
+0.4%
|
+0.1%
|
-0.2%
|
+0.9%
|
-2.7%
|
+0.5%
|
-
|
-
|
| 2025 |
+1.4%
|
+1.0%
|
-1.1%
|
+0.1%
|
+1.8%
|
+1.8%
|
+0.1%
|
+1.1%
|
+0.9%
|
0.0%
|
+0.7%
|
+0.5%
|
| 2024 |
+0.1%
|
+0.3%
|
+1.1%
|
-1.3%
|
+1.6%
|
+0.5%
|
+2.4%
|
+1.5%
|
+1.7%
|
-1.0%
|
+1.6%
|
-0.8%
|
| 2023 |
+3.7%
|
-1.9%
|
+2.0%
|
+0.2%
|
-1.2%
|
+1.8%
|
+1.1%
|
+0.2%
|
-1.6%
|
-1.0%
|
+4.9%
|
+3.2%
|
| 2022 |
-2.7%
|
-0.9%
|
-1.3%
|
-4.2%
|
+1.6%
|
-7.0%
|
+6.7%
|
-4.3%
|
-3.7%
|
+3.4%
|
+3.4%
|
-1.8%
|
| 2021 |
-0.4%
|
-0.2%
|
+1.2%
|
+0.6%
|
0.0%
|
+1.3%
|
+0.1%
|
+0.6%
|
-0.4%
|
-0.3%
|
-1.2%
|
+2.3%
|
| 2020 |
-0.5%
|
-1.3%
|
-10.0%
|
+4.9%
|
+3.0%
|
-0.6%
|
+5.1%
|
0.0%
|
-0.9%
|
+0.4%
|
+3.4%
|
+2.0%
|
| 2019 |
+4.9%
|
+1.2%
|
+1.3%
|
+1.0%
|
-1.9%
|
+3.2%
|
+0.2%
|
+0.7%
|
+0.4%
|
0.0%
|
+0.6%
|
+1.9%
|
| 2018 |
0.0%
|
-0.9%
|
-0.2%
|
+0.5%
|
0.0%
|
+0.1%
|
+1.7%
|
+0.7%
|
+0.5%
|
-2.0%
|
-0.4%
|
-2.1%
|
| 2017 |
+0.9%
|
+1.5%
|
-0.1%
|
+0.8%
|
+1.0%
|
+0.1%
|
+1.0%
|
+0.1%
|
+0.6%
|
+0.1%
|
-0.4%
|
+0.2%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
No holdings data available.
Related ETFs: HYG vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
HYG aims to track the performance of the Markit iBoxx USD Liquid High Yield Index, a market-cap-weighted index of U.S. dollar-denominated high-yield corporate bonds. The index focuses on liquidity, selecting bonds that meet minimum size and trading volume criteria. The fund primarily holds bonds rated BB or below, reflecting its high-yield focus. HYG is passively managed and rebalances periodically to align with the index composition, typically on a monthly basis.
Frequently Asked Questions
What is the average credit rating of HYG's holdings?
HYG primarily holds bonds rated BB or B, reflecting its focus on below-investment-grade debt.
How often does HYG pay dividends?
HYG distributes dividends monthly, providing a steady income stream for investors.
Is HYG suitable for conservative investors?
Due to its exposure to high-yield bonds, HYG is better suited for investors with higher risk tolerance.
Does HYG use leverage?
No, HYG does not employ leverage; it aims to track its index without amplifying returns or risks.
Industry Overview
The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) provides exposure to the high-yield corporate bond market, which consists of debt issued by companies with below-investment-grade credit ratings. These bonds offer higher yields to compensate for their increased credit risk. The high-yield market is influenced by economic growth, corporate earnings, and investor risk appetite. HYG is a popular choice for investors seeking income and diversification, though it requires careful consideration of the associated risks, including default risk and market volatility.
Alternative Comparison
HYG is often compared to the SPDR Bloomberg High Yield Bond ETF (JNK), another large high-yield bond ETF. While both track similar indices and offer comparable yields, HYG tends to have slightly lower expense ratios and greater liquidity. Another peer, the Invesco Fundamental High Yield Corporate Bond ETF (PHB), uses a fundamental weighting approach, differentiating it from HYG's market-cap-weighted strategy. Investors may prefer HYG for its liquidity and broad market exposure, while PHB appeals to those seeking a factor-based approach.
Issuer Overview
HYG is issued by iShares, a leading global provider of ETFs under the BlackRock umbrella. iShares is known for its extensive range of index-tracking ETFs, offering investors low-cost access to various asset classes. The firm emphasizes transparency, liquidity, and innovation in its product offerings.
Conclusion
HYG is a core holding for investors seeking exposure to the high-yield corporate bond market. Its liquidity, broad diversification, and yield potential make it a popular choice, though it carries inherent credit and market risks. Investors should weigh these factors carefully and consider their risk tolerance before investing.
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