USHY 📈 iShares Broad USD High - Overview

The iShares Broad USD High Yield Corporate Bond ETF, traded on BATS under the ticker USHY, is designed to offer investors exposure to the U.S. dollar-denominated high yield corporate bond market. By investing at least 80% of its assets in the component securities of its underlying index, the fund aims to closely track the performance of this market segment. Furthermore, it allocates at least 90% of its assets in fixed income securities that are representative of the types included in the underlying index, as determined by BFA, the fund's manager. This strategy is intended to provide a broad and diversified portfolio that mirrors the underlying index's composition.

The underlying index of the USHY ETF is specifically crafted to provide a comprehensive representation of the U.S. high yield corporate bond market. This includes a wide range of corporate bonds issued by companies in various sectors, with the common trait of being U.S. dollar-denominated and classified as high yield. The high yield designation typically signifies that these bonds carry a higher credit risk compared to investment-grade bonds, which can result in higher potential returns to compensate for this increased risk. By tracking this index, the USHY ETF offers investors a tool to gain exposure to this segment of the fixed income market, potentially enhancing the yield of their investment portfolios.

In terms of its structure, the USHY ETF is classified as an exchange-traded fund (ETF), belonging to the high yield bond category. It is domiciled in the United States and has the ISIN code US46435U8532. As an ETF, it combines the trading flexibility of stocks with the diversified investment benefits of mutual funds, allowing investors to buy and sell shares throughout the trading day. This liquidity, coupled with its broad coverage of the U.S. high yield corporate bond market, makes the USHY ETF an attractive option for investors seeking to diversify their fixed income holdings or to increase their portfolio's yield potential.