Average Daily Volume
15.44M
Fund Overview
The iShares Broad USD High Yield Corporate Bond ETF (USHY) seeks to track the investment results of an index composed of U.S. dollar-denominated, high yield corporate bonds. This ETF provides exposure to a broad range of high yield corporate bonds, offering investors access to the higher income potential associated with below-investment-grade debt. The fund is designed for investors seeking income and diversification within the fixed income portion of their portfolio. USHY is one of the largest high yield bond ETFs by assets under management, providing liquidity and tight bid-ask spreads for investors.
- Asset Class
-
Bond
- Industry
-
High Yield Bonds
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 7.44 %
- Currency Hedged
-
No
- Portfolio Turnover
-
13 %
- Dividend Date
-
Why Invest in the USHY 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 U.S. dollar-denominated high yield corporate bonds.
- Liquidity and transparency of an ETF structure, with tight bid-ask spreads due to its size.
- Lower expense ratio compared to many actively managed high yield bond funds.
- Exposure to a wide range of sectors and issuers, reducing single-security risk.
Potential Risks
- Higher credit risk due to exposure to below-investment-grade bonds, which are more susceptible to default.
- Interest rate sensitivity, as bond prices typically fall when interest rates rise.
- Potential for higher volatility compared to investment-grade bond ETFs.
- Economic downturns can significantly impact the performance of high yield bonds.
- Liquidity risk in the underlying bonds may affect the ETF during market stress.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+0.6%
|
-0.1%
|
-0.9%
|
+1.7%
|
+0.4%
|
+0.2%
|
-0.1%
|
+1.0%
|
-2.7%
|
+0.1%
|
-
|
-
|
| 2025 |
+1.4%
|
+1.0%
|
-1.2%
|
0.0%
|
+1.7%
|
+1.9%
|
+0.2%
|
+1.2%
|
+1.0%
|
0.0%
|
+0.7%
|
+0.5%
|
| 2024 |
+0.4%
|
+0.2%
|
+1.2%
|
-1.2%
|
+1.7%
|
+0.4%
|
+2.3%
|
+1.6%
|
+1.6%
|
-0.8%
|
+1.7%
|
-0.8%
|
| 2023 |
+3.6%
|
-1.7%
|
+2.3%
|
+0.2%
|
-1.1%
|
+1.8%
|
+1.2%
|
+0.3%
|
-1.5%
|
-0.9%
|
+4.7%
|
+3.3%
|
| 2022 |
-2.9%
|
-0.7%
|
-1.3%
|
-4.2%
|
+1.7%
|
-7.3%
|
+6.6%
|
-3.9%
|
-3.9%
|
+3.2%
|
+3.4%
|
-1.6%
|
| 2021 |
-0.2%
|
+0.1%
|
+0.8%
|
+0.9%
|
+0.1%
|
+1.6%
|
+0.2%
|
+0.6%
|
-0.2%
|
-0.1%
|
-1.3%
|
+2.3%
|
| 2020 |
-0.1%
|
-1.1%
|
-11.8%
|
+4.9%
|
+3.6%
|
+0.6%
|
+5.2%
|
+0.4%
|
-0.9%
|
+0.6%
|
+3.5%
|
+2.2%
|
| 2019 |
+4.8%
|
+1.4%
|
+1.1%
|
+1.3%
|
-1.6%
|
+2.9%
|
+0.2%
|
+0.7%
|
+0.5%
|
-0.1%
|
+0.2%
|
+2.3%
|
| 2018 |
+0.5%
|
-0.8%
|
-0.5%
|
0.0%
|
+0.4%
|
+0.1%
|
+1.2%
|
+0.7%
|
+0.4%
|
-1.7%
|
-0.9%
|
-1.8%
|
| 2017 |
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-0.4%
|
+0.5%
|
< -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: USHY vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
The iShares Broad USD High Yield Corporate Bond ETF (USHY) aims to track the performance of the ICE Broad USD High Yield Index. This index includes U.S. dollar-denominated high yield corporate bonds with remaining maturities of at least one year. The index is market-cap weighted, meaning larger issuers have a greater impact on performance. The fund primarily holds bonds rated BB or below, offering exposure to a diversified set of sectors and issuers. USHY is rebalanced monthly to maintain alignment with the index, ensuring consistent exposure to the high yield bond market.
Frequently Asked Questions
What is the credit quality of bonds held by USHY?
USHY primarily holds bonds rated BB or below, which are considered below-investment-grade or 'junk' bonds.
How often does USHY rebalance its holdings?
USHY rebalances monthly to align with its underlying index, the ICE Broad USD High Yield Index.
Is USHY suitable for conservative investors?
USHY is more suitable for investors with a higher risk tolerance due to its exposure to below-investment-grade bonds, which carry higher credit risk.
How does USHY compare to HYG and JNK?
USHY offers broader exposure to the high yield bond market compared to HYG and JNK, including smaller issuers and more diversified sectors, while maintaining a competitive expense ratio.
What are the main risks of investing in USHY?
The main risks include credit risk (default), interest rate risk, and liquidity risk, especially during economic downturns.
Industry Overview
The high yield bond market, often referred to as 'junk bonds,' consists of corporate debt issued by companies with below-investment-grade credit ratings. These bonds offer higher yields to compensate for their increased credit risk. The iShares Broad USD High Yield Corporate Bond ETF (USHY) provides investors with exposure to this market segment, which can be attractive for those seeking income in a low-interest-rate environment. High yield bonds are influenced by factors such as corporate earnings, economic growth, and investor risk appetite. While they can enhance portfolio yield, they also come with higher volatility and default risk compared to investment-grade bonds.
Alternative Comparison
Compared to peers like HYG and JNK, USHY offers a broader exposure to the high yield bond market, including smaller issuers and a more diversified sector allocation. While HYG and JNK are also popular high yield bond ETFs, USHY's index methodology includes a wider range of bonds, potentially reducing concentration risk. Additionally, USHY's expense ratio is competitive with other large high yield bond ETFs, making it a cost-effective choice for investors. Unlike some actively managed high yield funds, USHY provides pure index exposure without manager discretion.
Issuer Overview
iShares, a division of BlackRock, is the largest ETF provider globally, known for its extensive range of index-tracking ETFs. With a strong reputation for liquidity, transparency, and cost efficiency, iShares ETFs are widely used by both institutional and individual investors. The USHY ETF is part of iShares' fixed income lineup, offering investors access to the high yield corporate bond market through a passively managed structure.
Conclusion
The iShares Broad USD High Yield Corporate Bond ETF (USHY) is a well-established option for investors seeking exposure to the high yield bond market. With its broad diversification, competitive expense ratio, and liquidity, USHY can serve as a core holding for income-focused portfolios. However, investors should be mindful of the higher credit and interest rate risks associated with high yield bonds. As with any investment, aligning USHY with your overall risk tolerance and investment objectives is essential.
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